The Enforcement Directorate (ED) has obtained mandatory prosecution sanction against senior Congress leader P. Chidambaram in connection with the INX Media and Aircel-Maxis money-laundering cases, clearing a significant procedural hurdle and paving the way for trial proceedings to move forward more quickly. Both cases relate to alleged financial irregularities dating back to Chidambaram’s tenure as Union Finance Minister, allegations that he and the other accused have consistently denied.
The agency informed the Rouse Avenue Court that the competent authority granted approval for prosecution on February 10, fulfilling a legal requirement under the Prevention of Money Laundering Act (PMLA). The sanction became necessary following a Supreme Court judgment in November 2024 which ruled that prior approval is mandatory before prosecuting public servants under the PMLA. That ruling had led to delays and procedural challenges in several ongoing cases, including those involving Chidambaram.
With the required sanction now formally submitted before the trial court in both matters, legal objections based on procedural grounds are expected to diminish, allowing the cases to progress without further delays. The ED has indicated that it will seek expedited hearings as proceedings resume.
In the INX Media case, investigators allege that Chidambaram facilitated Foreign Investment Promotion Board (FIPB) approval for INX Media while serving as finance minister, purportedly in exchange for illegal gratification routed through companies linked to his son, Karti Chidambaram. The ED claims that approximately Rs 65.88 crore represents proceeds of crime that were allegedly layered through shell entities, including Advantage Strategic Consulting, and invested in assets both in India and overseas. Authorities have attached assets worth more than Rs 65 crore in phases since 2018. The prosecution complaint was filed in 2020, cognisance was taken in 2021, and a supplementary complaint was submitted in December 2024.
In the Aircel-Maxis case, the ED alleges that in 2006 FIPB approval was granted for a foreign investment proposal worth Rs 3,565 crore despite the investment allegedly requiring clearance at the Cabinet level. Investigators claim that illegal gratification amounting to Rs 1.16 crore was routed to companies associated with Karti Chidambaram. The prosecution complaint in this matter was filed in 2018, with the court taking cognisance in 2021.
The fresh prosecution sanction removes legal uncertainty created by the Supreme Court’s 2024 ruling and is expected to accelerate judicial proceedings in both cases, which have remained under investigation and litigation for several years.
