NEW DELHI: The Central Bureau of Investigation (CBI) has registered a fresh FIR against Congress MP Karti Chidambaram, son of former finance minister P Chidambaram. The case revolves around allegations that Karti helped Diageo Scotland, a UK-based alcoholic beverage company, circumvent a ban on duty-free sale of its Johnnie Walker whisky in India.
Vasan Health Care, Diageo Scotland and Sequoia Capital too have been named as accused in the fresh case.
A preliminary enquiry in the case was initiated in 2018, which probed the processing and approval of Foreign Investment Promotion Board (FIPB) clearances.
The new FIR alleges corruption in lifting the ban imposed on Diageo Scotland for sale of duty-free liquor in India in 2008 besides FIPB clearance to Sequoia Capital. It alleges that Karti received bribes through Vasan Health Care to grant FIPB clearance to Sequoia Capital.
According to CBI, Diageo Scotland had been importing duty-free Johnnie Walker whisky into India until April 2005, when India Tourism Development Corporation (ITDC) imposed an embargo on the sale of Diageo’s duty-free products. This move resulted in significant losses for Diageo Scotland, as 70% of its Indian business relied on Johnnie Walker whisky sales.
CBI alleges that Diageo Scotland approached Karti to get the embargo lifted and made suspicious payment of $15,000 to Advantage Strategic Consulting Pvt Ltd (ASCPL), a company purportedly controlled by Karti and his aide S Bhaskararaman. The payment was disguised as a “consultancy fee”.
ASCPL has been under the scanner in the INX Media case and another case involving alleged illegal gratification for granting Indian visas to Chinese workers.
In 2018, Karti was arrested by CBI in the INX Media case, and his father P Chidambaram was later arrested by both CBI and ED.
