P Chidambaram, as a finance minister during the UPA regime, allegedly committed "serious economic offence" along with his son Karti in the Aircel-Maxis scam and they have to be dealt with "iron hand", the CBI and the ED told a Delhi court while seeking their custodial interrogation.
The probe agencies alleged that the Chidambarams received "kickbacks" in the deal and they have been "non-cooperative" in the probe and can hamper the investigation if they are protected from arrest in the cases in which there was a larger conspiracy against the public and national interest.
The Chidambarams contested all the allegations of the two agencies, saying that how can charges of hampering the investigation can be levelled when the CBI and ED themselves were seeking adjournments on their anticipatory bail pleas, which has been pending for over an year.
Special judge O P Saini reserved the order for September 5 and till then they will be protected from arrest in both the cases.
Earlier, on August 23, while extending the protection from arrest till September 3, the judge had said he was not happy with the probe agencies for seeking repeated adjournments and had given the ultimatum that if they would not argue the matter, it would pass the order on September 3.
The court had said they have been seeking adjournments in the cases for over a year and it has become "embarrassing" to continue with the matter in this manner.
The cases relate to alleged irregularities in grant of Foreign Investment Promotion Board (FIPB) approval in the Rs 3,500-crore Aircel-Maxis deal when Chidambaram was finance minister.
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The CBI is probing how Chidambaram, 73, when finance minister in 2006, granted FIPB approval to a foreign firm, when only the Cabinet Committee on Economic Affairs (CCEA) was empowered to do it.
The ED is also probing a separate money laundering case in the Aircel-Maxis matter, in which the Chidambarams have been questioned by the agency.
On Monday, both the agencies alleged that Chidambaram, as finance minister during the UPA regime, granted approval to the Aircel-Maxis deal beyond his capacity which benefitted certain persons and received kickbacks.
"Chidambarams need to be dealt with iron hand," the CBI said, maintaining that the probe in the Aircel-Maxis corruption case is still going on.
"Chidambaram and his son have committed serious economic offences and there was a larger conspiracy against the public and national interest," they said, adding that their custodial interrogation was necessary as they have been non-cooperative in the investigation.
"Both accused are direct beneficiaries of the shell companies which received kickbacks. Movable and immovable properties bought by they by these proceeds of crimes. Accused are involved in distraction of the evidence. Bail at this stage would frustrate the investigation," both the agencies said.
The ED accused the Chidambarams of money laundering, saying they creating shell companies and committed other offences.
Opposing the submissions made by the agencies, senior advocates Kapil Sibal and A M Singhvi, appearing for the Chidambarams, said: "Since I have protection (from arrest) from this court, have I been hampering the probe or absconding from the law? You can seek cancellation of the bail. Most of the evidence are documentary and already with agencies/court."
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