INX Media is one of at least 20 firms which are under the scanner for transactions with Advantage Strategic Consulting Private Limited (ASCPL) and Chess Management Services, two firms linked to Karti Chidambaram.
After searches by the Enforcement Directorate in December 2015, summons under the Prevention of Money Laundering Act (PMLA) were sent to Essar Steel Limited; VST Tillers Tractors; Diageo Scotland Limited; and the Katra Group. These related to payments they had allegedly made to the two firms, in many cases, at the time of their FIPB applications or clearances.
These two firms sent invoices for “professional services,” or “consultancy work.” One company official who received the summons told The Indian Express that the company has already appeared before the ED but has been unable to give details of what services these two firms — ASCPL and Chess — offered.
ED officials said that they also have testimony of a Director of ASCPL that they received instructions on which companies to send the invoices to and admitted that hardly or no professional services were rendered.
Officials also said that now that an FIR has been filed in the INX case, they can push ahead on the remaining Karti Chidambaram-linked cases.
Copies of the PMLA summons sent by the ED to the companies show that besides details of bank accounts and annual returns, the ED has sought details of all FDI/ECB/GDRs (if any) received by the company between 2005 to 2008.
It also asked for the following: details of the consultancy received by the company during 2005 to 2008 including the name of the company/persons from whom consultancy was taken; details of payments made; copy of instruments used for payment; consultancy agreement.