The Central Bureau of Investigation (CBI) is probing the role of former finance minister P Chidambaram in allowing foreign investment by a Mauritius-based company, according to the agency charge sheet in the Aircel-Maxis deal.

The Central Bureau of Investigation’s submission came in its recently-filed charge sheet against then communications minister Dayanidhi Maran, his brother Kalanithi Maran, and Malaysian business tycoon T Ananda Krishnan and others.

Dayanidhi Maran is charged with using his influence to help Krishnan acquire Aircel by allegedly coercing its owner, Sivasankaran, to part with his stake.

The investigation has revealed that Dayanidhi Maran did not raise objection to the foreign investment proposal by Global Communication Services Holding Ltd in Aircel in 2006.

The CBI charge sheet added that Global Communication Services had sought the Foreign Investment Promotion Board’s approval (FIPB) for a $800mn investment, for which the Cabinet Committee on Economic Affairs (CCEA) was competent to grant approval.

“However, the approval was granted by the then finance minister (Chidambaram),” the CBI’s charge sheet stated.

“Further investigation is being carried out into the circumstances of the said Foreign Investment Promotion Board’s approval granted by then finance minister. The related issues are being investigated.”

The CBI charge sheet added that Sindhya Securities and Investments, the Indian partner of Mauritius-based Maxis Communication, acquired approximately 26% equity of Aircel through Deccan Digital Networks for a consideration of approximately $7.43mn which gives it just 0.01% economic interest in Aircel.

 

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