New Delhi: Exactly 10 days before the Narendra Modi government completes three years in power on May 26, Opposition politics took a major hit on Tuesday with the CBI and the income-tax department conducting multiple raids on the premises of RJD supremo Lalu Prasad Yadav and his family and on Karti Chidambaram, son of former finance minister P Chidambaram, in Chennai, Delhi, Mumbai, Gurugram (Haryana) and elsewhere across the country.
On Tuesday the CBI raided the Chennai residence and other locations linked to Karti for allegedly receiving money from a media firm owned by Indrani and Peter Mukerjea to manipulate a tax probe against the firm in a case of violation of Foreign Investment Promotion Board (FIPB) conditions in getting investment from Mauritius. The tax sleuths, meanwhile, carried out raids and surveys at around 22 locations in Delhi and nearby areas over the alleged benami deals worth Rs 1,000 crores linked to RJD president Lalu Prasad Yadav and others.
A political slugfest has erupted between the BJP and the Congress over the raids. The Congress described the raids as a “systematic witch-hunt” against the Opposition by a “vindictive government”, while the ruling BJP, on the other hand, said the raids should be marked as “the day of accountability for the corrupt”.
Finance minister Arun Jaitley defended the raids, saying “the day of reckoning has come for many... and they will be held accountable for their misdeeds”. He said the tax department or the CBI did not act unless there was a “substantial basis and a reason to suspect” that there was tax evasion or that a crime has been committed.
Mr P. Chidambaram came out with a strong statement in response to the raids, saying the government was using the CBI and other agencies to silence him by targeting his son Karti.
The five secretaries who constitute the FIPB, officials of the FIPB secretariat and the competent authority in each case are public officials, the former minister noted, adding there was no allegation against any of them.
RJD boss Lalu Prasad Yadav too hit back at the BJP, saying that he was “not scared at all” and will continue to fight against the “fascist forces”. He said: “BJP mein himmat nahi hai ki Lalu ki awaz ko daba sake... Lalu ki awaz dabayenge to desh bhar me karoron Lalu khare ho jayenge... Main gidarbhabhki se nahi darne wala hoon (The BJP doesn’t have the courage to stifle my voice... If it tries to silence one Lalu, crores of Lalu will come forward. I am not scared of empty threats),” he said in a series of tweets.
On Tuesday morning, CBI sleuths fanned out across 14 locations, including the Chidambarams’ properties in Chennai, Mumbai, Delhi and Gurugram.
The CBI had filed an FIR against Karti Chidambaram and Indrani and Peter Mukerjea on Monday over charges of criminal conspiracy, cheating, receiving illegal gratification, influencing public servants and criminal misconduct. The agency did not rule out investigating the alleged role of former finance minister P. Chidambaram.
Later in the evening, speaking to reporters, CBI joint director (anti-corruption) Vineet Vinayak said: “Agency sleuths have recovered certain incriminating documents during searches which are being scrutinised.”
When asked about the possibility of the questioning of the former finance minister, he said: “We have set the process of investigation in motion with the FIR. All the issues relevant to this FIPB approval will be investigated. All the people whose involvement has come forth will be examined in due course.” He claimed that during the searches and raids at properties linked to the former finance minister and his son, the agency has seized computers, hard disks and some incriminating documents. The CBI claimed to have recovered vouchers worth Rs 10 lakhs issued in favour of Advantage Straetgic Consulting Pvt Ltd, a firm “indirectly” owned by Karti. The CBI joint director also said it has recovered invoices worth Rs 3.05 crores. He maintained the documents seized from the INX Media premises “shows that Rs 10 lakhs was given to Advantage Straetgic Consulting”. It was further alleged that invoices of approximately Rs 3.5 crores were raised in favour of the INX group in the name of other companies in which Karti had “direct” or “indirect” interests.
The agency had on Monday registered an FIR against Karti, his company Chess Management Services, the Mukerjeas, INX Media, Advantage Strategic Consulting Services and its director Padma Vishwanathan.
CBI sources said that during the UPA government INX Media had sought investments from Mauritius. The FIPB and the finance ministry, however, allowed investment of not more than Rs 4.62 crores. It was alleged that by using political influence, INX Media violated the FIPB terms and received investment to the tune of Rs 305 crores.
In a related development, the income-tax department went after the RJD chief and his family members by raiding premises linked to the Yadav clan. I-T sleuths raided the “benami” properties of Lalu Prasad Yadav at New Friends Colony, Sainik Farms and farmhouses in Bijwasan and South Delhi areas. Tax officials also raided the premises of RJD MP P.C. Gupta’s son.
Fresh trouble is brewing for the RJD chief as the income-tax department could slap the newly-enacted Benami Transactions Act 1988, which carries a maximum penalty of seven years in jail and a fine, on him as well as the other accused. Some documents and computer hardware have been seized from the premises under search.
“People and businessmen connected to the land deal involving Lalu Prasad and his family are being searched. There are allegations of benami deals worth around Rs 1,000 crores and subsequent tax evasion,” said senior I-T officials.
It may be recalled the BJP had recently alleged that the RJD chief, his daughter Misa, a party MP, and two sons Tejashwi and Tej Pratap, both Bihar ministers, were involved in corrupt land deals worth over Rs 1,000 crores.
Also, in February this year, BJP Rajya Sabha MP Subramanian Swamy had alleged Mr Chidambaram’s family and his son Karti had huge assets, including several overseas bank accounts in more than 14 countries. Mr Swamy had alleged the former finance minister’s family had jointly purchased a property and a big palatial house in Cambridge, England. He further claimed Mr Chidambaram had never declared this property in any of his mandatory affidavits as a Member of Parliament or as a minister.
