Delhi High Court Stays Trial Court Proceedings Against Chidambaram In Aircel-Maxis Money Laundering Case

The Delhi High Court on Wednesday (20 November) stayed trial court proceedings against Congress Rajya Sabha member and former Union finance minister P Chidambaram in the Aircel-Maxis case.

The case, lodged by the Enforcement Directorate (ED), pertains to alleged money laundering violations under the Prevention of Money Laundering Act (PMLA).

The stay was granted after Chidambaram filed a petition challenging a 2021 trial court order that had taken cognizance of the ED’s chargesheet despite the agency not obtaining mandatory sanction for prosecution.

Justice Manoj Kumar Ohri issued notice to the ED, stating that a detailed order would follow, and set the next hearing for 22 January 2025.

The ED and the Central Bureau of Investigation (CBI) allege that Chidambaram, during his tenure as finance minister under the United Progressive Alliance (UPA) government, approved the Aircel-Maxis deal beyond his authorised capacity.

The deal involved $800 million (approximately Rs 3,565.91 crore) in foreign investment sought by M/s Global Communications Services Holdings Ltd (GCSHL).

The agencies claim that such approval could only have been granted by the Cabinet Committee on Economic Affairs and allege that Chidambaram received kickbacks amounting to Rs 1.6 crore for facilitating the deal.

Chidambaram has argued that the trial court’s cognizance of the charges, based on the ED’s prosecution complaints filed in 2018, is invalid as the agency failed to obtain prior sanction under Section 197(1) of the Code of Criminal Procedure (CrPC).

He cited a recent Supreme Court ruling that clarified the necessity of such sanction for prosecuting a public servant under PMLA provisions.

The ED, however, countered this argument, with its counsel Zoheb Hossain asserting that while Chidambaram’s official duty may involve approvals, “receiving Rs 1.6 crore (as kickback) is not part of official duty.”

The Aircel-Maxis case dates back to allegations of irregularities in Foreign Investment Promotion Board (FIPB) approvals granted during Chidambaram’s tenure. The case has been under investigation since 2011 and involves multiple charges of corruption and money laundering.

The High Court’s decision to stay the trial proceedings provides temporary relief for Chidambaram, whose petition also seeks to quash the trial court’s cognizance order of November 2021. The matter will now be heard early next year.