Investigating Agency Has To Supply List Of Both Relied & Unrelied Documents To Accused: Delhi High Court Tells CBI In INX Media Case

While hearing CBI's plea against a Special Judge's order directing it to allow the accused (including former Minister P. Chidambaram) to inspect the documents collected by the agency while investigating the INX Media Case,  the Delhi High Court on Monday observed that the issue has already been settled by the Supreme Court.

"Whenever charge sheet is filed, the investigation agency has to prepare a list of both relied documents and un-relied documents. You will have provide the list so that the accused, if so desires, can make an application for inspection," Justice Mukta told the CBI.

The Judge was referring to the Supreme Court's judgment dated April 20, 2021, in its suo moto case titled In Re: To Issue Certain Guidelines Regarding Inadequacies And Deficiencies In Criminal Trials.

In paragraph 11 of the said case, the Supreme Court has held as follows:

"while furnishing the list of statements, documents and material objects under Sections 207/208, Cr. PC, the magistrate should also ensure that a list of other materials, (such as statements, or objects/documents seized, but not relied on) should be furnished to the accused. This is to ensure that in case the accused is of the view that such materials are necessary to be produced for a proper and just trial, she or he may seek appropriate orders, under the Cr. PC.3 for their production during the trial, in the interests of justice. It is directed accordingly; the draft rules have been accordingly modified. [Rule 4(i)]"

Accordingly, Justice Gupta observed that "the issue has already been settled by the Supreme Court."

As CBI's counsel sought time to go through the aforesaid judgment, the matter has been posted for August 27. The interim order, staying trial proceedings in the matter, will continue till the next date.

Challenging the order passed by Special CBI Judge, MK Nagpal dated 5 March, the CBI had moved the Delhi High Court stating that the Special Judge had exceeded its jurisdiction in issuing directions to CBI to file or produce before the Court all the documents collected by it during the course of investigation and to observe that the accused persons are also entitled to copies of such documents irrespective of the fact that whether they are being relied upon by the CBI or not.

CBI had registered an FIR dated 15th May 2017 against INX Media Pvt. Ltd., Karti Chidambaram and others for offences under sec. 120B read with sec. 420 of IPC along with sec. 8, 12(2) and 13(1)(d) of the Prevention of Corruption Act, 1988.

Since the offences find mention in the Schedule appeneded to the Prevention of Money Laundering Act, 2002, a case was also registered by the Directorate of Enforcement (DoE), Ministry of Finance, Department of Revenue, Government of India on 18th May 2017 and an investigation was therefore taken up for a possible action under PMLA.

The said FIR was registered on the allegations that Indrani Muherjea and Pratim Mukherjea, Director and COO respectively of INX Media entered into a criminal conspiracy with Karti P Chidambaram and committed illegal acts in receiving excess Foreign Direct Investment (FDI) than the amount approved by Foreign Investment Promotion Board (FIPB). Other allegation was that such unauthorized downstream investment by INX Media in INX News without the approval of FIPB, were got scuttled by Karti P. Chidambram by influencing the public servants of FIPB Unit, Department of Economic Affairs (DEA), Ministry of Finance (MoF)

It was therefore alleged that owing to the criminal conspiracy and influence of P Chidambaram and Karti Chidambaram, such officials abused their official positions and caused undue favours to INX Media due to which INX Media had paid huge amounts to some companies which Karti P Chidambaram had substantial interest in, either directly or indirectly.

The investigation revealed that for regularization of excess FDI and downstream investment by INX Media, proceeds of crime were generated on few occasions from criminal activities of the said case and the same were received by Karti P. Chidambram through some shell companies associated with him.

Furthermore, it was revealed that a fake invoice dated 26th June 2008 of Rs. 11,23,600 was raised in the name of ASCPL, a company beneficially owned by Karti Chidambaram, for providing consultancy services to INX Media. The investigation further revealed that four more fake invoices in the names of four other companies for amounts, totalling to approximately US $ 700,000 (equivalent to Rs.3.2 corers), in the month of September, 2008 were also raised on INX Media.

Case Title: CBI v. M/S INX Media Pvt Ltd. & Ors.