CBI to probe former finance minister P Chidambaram’s FIPB approval

The CBI will investigate the circumstances of the FIPB approval given by the then Finance Minister P Chidambaram in the Aircel-Maxis deal in 2006. The agency told a special court in its chargesheet in the case that Mauritius-based M/s Global Communication Services Holdings Ltd, a subsidiary of Maxis, had sought approval for USD 800 million for which Cabinet Committee on Economic Affairs (CCEA) was competent to do so.

“However, the approval was granted by the then Finance Minister. Further investigation is being carried out into the circumstances of the said FIPB approval granted by the then Finance Minister. The related issues are also being investigated,” the chargesheet in the Aircel-Maxis case before special judge O P Saini said.

The agency said that Finance Minister was competent to accord approval on project proposals of upto Rs 600 crores and proposals beyond this required the approval of CCEA. “In the instant case, the approval of FDI of 800 million USD was sought. Hence, CCEA was competent to grant approval. However, it was not obtained,” it claimed.

However, sources who were in the know of developments in the matter at that time said that the FIPB sought only the approval of the minister and not the CCEA as it was not required under the rules then.

CBI had chargesheeted former Telecom Minister Dayanidhi Maran, his brother Kalanithi Maran, T Ananda Krishnan, Malaysian national Augustus Ralph Marshall and four firms — Sun Direct TV Pvt Ltd, Maxis Communication Berhad, South Asia Entertainment Holding Ltd and Astro All Asia Network PLC — as accused in the case.