Congress MP Karti Chidambaram, who is also the son of former Union Minister P Chidambaram, is in for more trouble with the Central Bureau of Investigation (CBI) filing a fresh corruption case against him, accusing that his company received suspicious payment from Diageo Scotland, a liquor firm.

This was, the CBI alleged, in return for providing relief to the alcoholic beverage company over a ban imposed by the India Tourism Development Corporation (ITDC) on the duty-free sale of its liquor.

The Sivaganaga MP is facing a multi-agency probe in three previous corruption matters — Aircel Maxis case, Visa for Chinese employees case and INX Media case.

The CBI in its latest FIR charged that through suspicious share transactions “a total of ₹86.80 crores was paid by Sequoia to ASCPL (Advantage Strategic Consulting Pvt. Ltd) (₹7500 per share) and Arun (since deceased), the founder of Vasan Healthcare, as against actual market rate of ₹1.27 crore”.

As per the FIR, suspicious payments were allegedly made to the ASCPL, “an entity controlled” by Karti and his close aide S Bhaskararaman by Diageo Scotland and Sequoia Capitals.

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The CBI alleged in its FIR that Diageo Scotland sought help from Karti Chidambaram for lifting the ban and made payments of $15,000 to ASCPL which took it in the guise of “consultancy fee”.

“The enquiry has revealed that $15,000 was paid to Karti P Chidambaram through ASCPL for influencing the public servants to lift the ban imposed on Diageo Scotland for the sale of duty-free liquor and not for any consultancy work,” the FIR alleged.

The case stemmed from a Preliminary Enquiry registered by the CBI in 2018 to look into alleged irregularities in granting Foreign Investment Promotion Board (FIPB) clearance, when P Chidambaram was the Union Finance Minister. The PE was registered against Katra Holdings, ASCPL, Karti Chidambaram and others.

The FIPB was an inter-ministerial organisation tasked with processing FDI bids and offering suggestions for government approval.

The CBI has also named Bhaskararaman, ASCPL, Diageo Scotland, Mauritius-based Sequoia Capital, Vasan Healthcare Pvt Ltd in the case registered under IPC sections 120-B (criminal conspiracy), 420 (cheating) and provisions of the Prevention of Corruption Act.

The CBI stated that its enquiry has revealed that Diageo Scotland, UK, used to import duty-free Johnnie Walker whisky.

In April 2005, the ITDC, given its monopoly over the sale of imported duty-free liquor in India, put an embargo on the sale of Diageo’s duty-free products in India.

The move had a huge impact on the company’s revenue as 70 per cent of its business in India was sourced from the sale of Johnnie Walker whisky, the agency alleged.

The CBI is also looking into suspicious share transactions involving Sequoia Capital and Vasan Healthcare when the former’s proposal for foreign investment in India was awaiting clearance by the Foreign Investment Promotion Board (FIPB), the FIR alleged.

The CBI has alleged that the wife of Vasan Healthcare’s founder, Meera Arun, had “subscribed 5.80 lakh shares of the M/s Vasan at ₹200 per share on October 28, 2008” from which she gifted three lakh shares to her father Dwarkanathan (since deceased).

Dwarakanathan sold half of the shares to ASCPL at ₹100 per share the next day on October 29, 2008, the FIR alleged.

The agency alleged that the account of ASCPL does not reflect any entry regarding the payment of ₹1.50 crore to Dwarkanathan for the purchase of shares.

Two years later on October 26, 2010, ASCPL allegedly sold 30,000 shares out of total 1.5 lakh shares to a sister concern of Sequoia, namely, Sequoia Capital India Growth Investment Mauritius at ₹7,500 per share amounting to ₹22.50 crores, the FIR said.

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The same day CMD of Vasan Health Arun (since deceased) also sold 52,133 shares to Sequoia Capital India Growth Investment Mauritius at ₹7,500 per share amounting to ₹39.09 crore and 33,600 shares to Sequoia Capital India Growth Investment-II Mauritius at ₹7,500 per share, amounting to ₹25.20 crore, the FIR alleged.

Dwarkanathan also received ₹1 crore from ASCPL on October 27, 2010, which also does not reflect in the accounts of ASCPL, the CBI alleged.

“Enquiry has revealed that the share transactions at exorbitant price is not in ordinary course of business but is a part of conspiracy to benefit Karti P Chidambaram who could influence the public servants,” the FIR alleged.