A Taxing Time for Karti Chidamabaram: ED, I-T Unravels Records of Assets in 14 Countries

The Enforcement Directorate (ED) and the investigation wing of the income tax department uncovered enormous asset holdings of Karti Chidambaram, son of former finance minister P Chidambaram.

Following the raid of Karti’s company—Advantage Strategic Consultancy—the government agencies brought out documents that testify the reach of his business empire which spreads across the world including London, Dubai, South Africa, Philippines, Thailand, Singapore, Malaysia, Sri Lanka, British Virgin Island, France, USA, Switzerland, Greece and Spain.

Also Read: AIADMK stalls Parliament proceedings demanding action on Karti Chidambaram

Advantage Strategic Consultancy was earlier in the headlines for the Aircel-Maxis deal for illegal financial transactions with telecom beneficiaries.

Reportedly, most of his investments abroad were executed through Advantage’s Singapore unit, Advantage Strategic Consulting Singapore Pvt Ltd. According to an English news daily The Pioneer, the investigation agencies are likely to contact their counterparts in the foreign countries to furnish more details on Karti’s investments as per the United Nation’s Convention on the prevention of money laundering.

The raids have also exhumed details of the wealth amassed by Karti between 2006 and 2014, when his father was the union finance minister. In September 2011, Advantage’s Singapore unit had acquired 88 acres of farmland in Somerset in UK for £1 million. The joint probe by ED and the I-T Department has reportedly seized documents that included four title deeds in relation with the land transaction. According to The Pioneeer, his company has investments in Artevea Digital Ltd in Cambridge and executed transactions with London-based company Oppenheimer & Co (UK) Limited.

Other documents seized included his investments in a Sri Lanka-based financial firm: Union Development and Investment Co Pvt Ltd. The details which have come out so far also suggest his major share holdings in hotel and resort enterprises, based out in the island nation. 

In yet another shocking fact, the documents unearthed from Karti’s office divulged details on how the Singapore unit routed money via Dubai to acquire three farms and vineyards in South Africa, identified as Rowey Farm in Grabouw, Cape Orchards and Vineyards Pvt Ltd, and Zandvliet Enterprises, a wine and stud farm in Ashton.

Dubai-based Desert Dunes Properties Ltd also has investment in Karti’s Singapore-based company. The investigation agencies uncovered a financial transaction of 1.7 million Singapore Dollars between these firms. It has come to light that another Dubai-based company, Pearl Dubai, also had financial dealings with the firm.

The Singapore subsidiary had entered into joint ventures with Philippines-based companies to obtain a franchise team of International Premier Tennis League (Asia).

The investigation also brought out Advantage’s financial transactions with a Singapore-based real estate company for purchasing land bits in Thailand.

The Company Advantage has financial dealing with Geben Trading Limited in British Virgin Island (BVI) which is again an asset owned by Advantage’s subsidiary in Singapore. The investigation agencies have found out that the firm’s major transactions were through the famous Swiss Bank, UBS. The Advantage also has transaction of five million Singapore dollars with another firm in Singapore, Unison Global Investment Ltd. The investigation agencies in have seized proofs of financial transactions in Euro and Dollar.

Advantage had also acquired a residential flat in Malaysia worth 1.9 million Malaysian ringgits from a firm named ‘Peninsular Smart’. The raids also unravelled details of payment to Singapore-based Maxis which acquired his Aircel from Advantage. Reportedly, details of payment amounting to Rs 30 crore, transacted through foreign currency were discovered.

According to the report in The Pioneer, ED and I-T department dispatched all the information regarding Karti’s supermassive wealth accumulation to the Supreme Court (which is currently monitoring the probe on Aircel-Maxis scam).

This report is based on the original article that appeared in The Pioneer on February 29.

Also read; P Chidambaram called out in Ishrat Jahan case, Congress on the back foot