IT, ED raid Karti Chidambaram’s business associates; ex-min cries foul

Chennai/ New Delhi, December 1

Income Tax Department and the Enforcement Directorate jointly raided two companies belonging to associates of former Union Finance Minister and Congress leader P Chidambaram’s son Karti Chidambaram for suspected tax evasion on Tuesday, authorities said.

A press release issued by the Central Board of Direct Taxes late in the evening said they had “credible” information of tax evasion.

The release also said officials found "incriminating evidence indicative of tax evasion and financial irregularities”.

Although the release did not name the companies raided, sources said searches conducted on five premises in the two cities included one belonging to a private eye care chain.

Sources said that Income Tax Department had been investigating suspected tax evasion, while the ED were part of the search teams to investigate financial irregularities under the the Foreign Exchange Management Act (FEMA).

The Income Tax department has been conducting searches at residences and offices of the key functionaries of the group.

A private limited company in Chennai that has shares in the group is also being investigated.

"Certain incriminating evidence indicative of tax evasion and financial irregularities have been recovered during the on-going investigation. Further action as per law will follow," the press note claimed.

Karti Chidambaram, himself a Congress leader, was unavailable for comments.

‘Malicious onslaught’

Former Finance Minister P Chidambaram accused the government of deliberately targetting his family.

"If the government wishes to target me, they should do so directly, not harass friends of my son who carry on their own businesses and have nothing to do with politics," he said in a statement shortly after reports of IT and ED searches on some premises connected with Karti's friends.

"My family and I are quite prepared to face the malicious onslaught launched by the government," Chidambaram said.

The senior Congress leader said he was travelling and he had been informed about searches conducted on certain firms in Chennai allegedly linked to his son.

 "We have made it clear, repeatedly, that no member of my family has any equity or economic interest in any of the firms that are being targeted.

"They are companies that are professionally managed and are capable of answering any questions that may be put to them by the authorities. I condemn the attempt to link them to my son and harass them on that ground," he said.

Chidambaram claimed the government was using an officer of the Enforcement Directorate who had a problem with the Department of Revenue, Ministry of Finance, when he was at the head of the ministry to order the raids.

"Orders in his case were apparently passed during the term of my predecessor. He met me and wanted me to intervene in his favour. I declined and I told him that I could not reverse orders that were issued during the term of my predecessor.”

"The change of government has given him an opportunity to misuse his powers to harass my son and his friends," he said.

"These are consequential to the on-going investigations.

The press note, however, said the raids had no  “collateral purpose”. 

“No political person or his family member are today shareholders or directors of the companies searched or surveyed by the Income Tax department. — PTI