Chidambaram-NDTV Money Laundering expose: Biggest scam in making?

It was 18 January when a video was uploaded on YouTube by Manushi, a magazine dedicated to feminism, clearly showing SK Srivastava, 1987 batch Indian Revenue Service (IRS) Official revealing startling facts about the current Finance Minister P Chidambaram and his alleged ownership in the premier news channel New Delhi Television Limited

The one-hour-thirty-six minute-and-forty-one-second long video brings to surface some astounding revelations, which if examined appropriately, can bear far reaching and devastating impact, both on the NDTV and P Chidambaram – and surely UPA II government.

What exactly is the whole matter about?

NDTV, a leading news channel founded by Prannoy Roy, which is also listed on the Indian stock exchange, has been accused of money laundering to the tune of about Rs 5000 crore, a figure not as colossal as the 2G or Coal scam, but surely very close to Rs 5,500 crore NSEL scam, which was unearthed recently – if you are aware of it.

Senior advocate Ram Jethmalani’s letter to Chidambaram

It all commenced with senior counsel Ram Jethmalani’s letter to Chidambaram on 6 December, 2013 accusing him of acting in collusion with the NDTV and laundering Rs 5000 crores of money through Mauritius route back to India. It’s a big charge to make and bearing in mind senior counsel and former Law Minister’s long and eventful years of experience backing him, he beyond doubt seems to hold some stern evidence in the matter directed against the Finance Minister. Unless, somebody is in custody of seriously solid evidence, to back his voice, and more such if it’s a man of stature of Ram Jethmalani, making such indictment can be a treacherous job and that too against a person as prevailing as P Chidambaram.

Various allegations made by Ram Jethmalani against Chidambaram:

• SK Srivastava, senior IRS officer deputed in Central Board of Direct Taxes (CBDT) was into investigation of tax frauds committed by the NDTV and caught hold of some serious violations, related to money laundering mainly, made by the news channel. As per the figures mentioned in the documents available on internet (all documents are easily accessible on internet), monetary fraud committed by the NDTV runs into thousands of crores. Interestingly, the frauds have been committed through the route of ‘Step Up Coupon’ bonds. Bonds of this nature have low initial interest rate payments, which step up with time.
• As per Jethmalani, a London subsidiary received 300 million pounds in 2006-07 in form of these bonds. The bonds were not in use till 2009, but finally moved through Mauritius route to India in the year 2009. However, what confuses everyone including Jethmalani and senior accountant S Gurumurthy, the liability was ‘written-off’ or ‘paid-off’ (both claim differently) without any sign of bond holder existing on ground. Surely, on papers, these ghost investors must have a name for themselves.
• Jethmalani also asserts that the NDTV had floated altogether 21 bogus subsidiaries all across the world.

Furthermore, Jethmalani claims the money invested in NDTV is that of Chidambaram and his son Kartikeya, and in order to suppress the ongoing investigation, SK Srivastava was suspended (and sent on leave various times) on fake charges, as serious in nature as sexual harassment, of 1999 batch two female officers from his own department.

The officer was declared mentally unhealthy by the honorable High Court on basis of wrong medical certificate issued by one private hospital. However, due to intermediation by the Medical Council of India later, the truth couldn’t be suppressed and was declared mentally fit at last. But, the hounding didn’t stop.

It appears, Srivastava, was only pestered for his persistence to keep the investigations going, despite pressure being exerted from all ends.

One of the points mentioned in the letter also accuse some more names of wrongdoing:

“Your efforts to stall inquiries and investigations into the charges of bribery against you and into the affairs of NDTV and its subsidiaries in the matter of concealed income (about Rs 5700 crores), money laundering (about Rs 5500 crores), tax evasion (about Rs 3500 crores) and embezzlement of Rs 1.46 crore of Govt money etc by Prannoy Roy, KVL Narayan Rao, Vikramaditya Chandra, Barkha Dutt, Ajay Mankotia and others.”

The law stands violated and abused by some of the IRS officers too -

Shumana Sen and Ashima Neb were the two IRS officers who lay blame on Srivastava of sexually harassing them. But, Srivastava was not found guilty by the panel overseeing the whole matter and amusingly, the bench comprised all women.

Shumana Sen, who was bestowed with the duty of assessing NDTV accounts in the role of assessing officer, is married to one Abhisar Sharma, who works with the NDTV.

Then, isn’t it a clear case of conflict of interest? Assessing authority from the CBDT are required to furnish details about whether he/she has any one, in close relation, working in the firm that is supposed to be assessed. In case, if someone exists, he/she isn’t entitled to assess the particular firm.

If Sen had furnished wrong information, as alleged, isn’t she liable to get punished under the rules of job of an assessing authority?

It’s been so-called in the video that Shumana Sen, along with her husband, visited Europe soon after assessing the company and allegedly letting it off the hook by giving them a welcome refund of Rs 1.47 crore.

Mr. Jethmalani accuses the amount, received by her husband, in the tune of around one crore. He also claims that Sen’s role in the matter should also be investigated by the book.

Letter by S Gurumurthy to both Chidambaram and Prannoy Roy brings more facts to surface.

Madhu Kishwar receives Legal notice from the NDTV:

Soon after Madhu Kishwar published an article on the issue in Manushi, she got slapped with a legal notice for defamation and slander.

Whatever, the reality may be, the whole matter needs to be investigated right from the scratch, to bring out the real truth in the public domain.

Chidambaram did reply to the letter by Jethmalani claiming the accusations made against him are totally despicable. He also informed that a letter in this regard has been already forwarded to Finance Secretary-cum- Revenue Secretary Sumit Bose to conduct a time bound inquiry with directions that the concluding report will be shared with the Prime Minster of India.

However, nothing concrete is out in the open realm yet.

The other worrying factor is a total silence maintained by our otherwise so vocal mainstream news media. Barring ‘Punjab Kesri’, ‘Mid Day’ and of late a small column in ‘Times of India’ (some of the private blogs do raised the issue as always) not many are interested in the matter – or, are they too threatened to take up the matter in the first place? And, where are our ever so choral electronic news media channels hiding? Listening -Times Now, Headlines Today and IBN7?

But, something that can’t be denied is that, another scam is surely in the making, if investigations are allowed to follow. Beware UPA government and buck up BJP, if you are serious about countering money laundering in the country.