NEW DELHI: The Directorate of Enforcement (ED) has filed a prosecution sanction order against former Union Finance Minister P Chidambaram in connection with the alleged money laundering offence in the Aircel-Maxis deal, placing the order before the Special Court under the Prevention of Money Laundering Act (PMLA) at Rouse Avenue, New Delhi.In a post on social media platform X on Thursday evening, the ED said, “ED has placed prosecution sanction order received from the Competent Authority against Shri. P Chidambaram, the then Union Finance Minister in respect of the offence of money laundering in the Aircel Maxis Deal, before the Ld. Special Court.”The agency also issued a detailed press release stating that the sanction was obtained from the competent authority to prosecute Chidambaram as a public servant and has now been submitted before the Special Court to expedite the pending trial.
Sanction obtained following Supreme Court ruling
The move comes in the backdrop of a November 6, 2024 judgment of the Supreme Court in “Directorate of Enforcement vs Bibhu Prasad Acharya & Ors.” (Criminal Appeal Nos. 4314-4316 of 2024), which held that prosecution sanction under Section 197(1) of the CrPC is applicable to complaints filed under Section 44(1)(b) of the PMLA as well.According to the ED, after the apex court’s ruling, several accused persons charged under the PMLA challenged trial proceedings in various legal forums, causing delays. To comply with the judgment and avoid further delay, the agency said it initiated remedial action by seeking prosecution sanctions in all pending complaints involving public servants.In Chidambaram’s case, the sanction was sought from the competent authority and obtained on February 10, 2026, along with an order under Section 197 of the Code of Criminal Procedure, 1973 (corresponding to Section 218 of the Bharatiya Nagarik Suraksha Sanhita, 2023), for prosecuting him in respect of the alleged offence of money laundering.The prosecution sanction order has now been placed before the Special Court (PMLA), Rouse Avenue, to expedite the trial, the ED said.
Background of the Aircel-Maxis case
The ED initiated an investigation under the PMLA in ECIR/05/DZ/2012, based on an FIR registered by the Central Bureau of Investigation (CBI) in 2011 in the Aircel-Maxis case. The CBI FIR alleged offences under Sections 120-B and 420 of the Indian Penal Code and Sections 8, 13(2) and 13(1)(d) of the Prevention of Corruption Act, 1988.According to the ED, its investigation revealed that Chidambaram, as the then Finance Minister, granted Foreign Investment Promotion Board (FIPB) approval to the Aircel-Maxis deal in 2006 “in lieu of quid pro quo.”In the deal, the foreign investor Maxis had sought government approval for foreign direct investment (FDI) of $800 million (Rs 3,565.91 crore). The ED alleged that the competent authority for approving such an investment was the Cabinet Committee on Economic Affairs (CCEA), as the amount exceeded Rs 600 crore. However, it claimed that approval was “fraudulently and dishonestly granted” on March 20, 2006 by Chidambaram, who was competent to approve FDI proposals involving investments of Rs 600 crore or less.
Alleged proceeds of crime and attachment
The ED further alleged that illegal gratification amounting to Rs 1.16 crore was received by Karti P Chidambaram in his companies, M/s Advantage Strategic Consulting Pvt. Ltd. (ASCPL) and M/s Chess Management Services Pvt. Ltd. (CMSPL).The agency said its investigation revealed financial transactions between P Chidambaram and Karti P Chidambaram and that funds of ASCPL were spent “for and on behalf of P Chidambaram.”Proceeds of crime amounting to Rs 1.16 crore were provisionally attached through a Provisional Attachment Order dated September 23, 2017. The attachment was confirmed by the Adjudicating Authority on March 12, 2018.Subsequently, a prosecution complaint under Sections 44 and 45 read with Sections 3 and 4 of the PMLA was filed on June 13, 2018, followed by a supplementary prosecution complaint on October 25, 2018, before the Special Court (PMLA), Rouse Avenue, where Chidambaram was arraigned as accused number A-6.The Special Court, by its order dated November 27, 2021, took cognisance of the offence of money laundering.The ED has also obtained prosecution sanction against Chidambaram in another money laundering case related to INX Media.With the latest sanction in the Aircel-Maxis matter now placed before the Special Court, the ED said it has been making “all efforts to fast track the trial” in the case.
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