JUDGMENT

Vide the present bail petition, the Petitioner/accused herein Sh. P. Chidambaram seeks bail in relation to the captioned case titled "CBI v. INX Media Pvt. Ltd. & Ors." arising out of the First Information Report dated 15.05.2017 bearing No.RC2202017-E-0011, subject to such conditions or directions, as deemed fit by this Court.

1. Brief facts of the case, as stated in the petition, are that on 13.03.2007, INX Media Pvt. Ltd. filed an application seeking approval of the FIPB for permission to issue by way of preferential allotment in one or more tranches, (i) up to 14,98,995 equity shares of Rs.10 each, and (ii) up to 31,22,605 convertible, non-cumulative, redeemable preference shares of Rs.10 each collectively representing approximately 46.216% of the issued equity share capital of INX Media. It was also mentioned therein that INX Media, subject to provisions of the applicable law, has an intention to make a downstream financial investment to the extent of 26% of the issued and outstanding equity share capital of INX Media. However, this matter was not placed before the FIPB. On 18.05.2007, meeting of FIPB (comprising of 6 Secretaries to the Government of India) was held. FIPB recommended the proposal of INX Media in respect of the proposed issue of shares up to 46.216% of the issued equity.

2. The allegations against the Petitioner is that contrary to the approval of FIPB, INX Media deliberately and in violation of the conditions of the approval:

(a) made downstream investment to the extent of 26% in the capital of INX News without specific approval of FIPB which included foreign investment by the same foreign investors; and

(b) brought in Rs.305 Crores FDI in INX Media by issuing shares to the foreign investors at a premium of more than Rs.800/- per share.

3. Accordingly, from February to April, 2018, three complaints were received by the Petitioner against INX Media/INX News, all of which were marked to the then Revenue Secretary who in turn marked the said complaints to various authorities for enquiry.

4. In addition, pursuant to certain complaints received from the Investigation Wing of the Income Tax Department, the then Under Secretary, IFPB wrote to INX Media on 26.05.2008 sought clarifications regarding the downstream investment and the amount of FDI inflow. In response thereto, INX Media wrote to FIPB on 26.06.2008 intimating that the downstream investment will be as per approval of FIPB, the inflow of funds are including premium and are within the given limit of 46.216% approved by FIPB. It was further stated that till 26.06.2008, Rs.305.36 Crores have been received by INX Media as FDI. However, on 09.07.2008 and 21.08.2008, FIPB wrote to INX News to submit fresh application for downstream investment latest by 29.08.2008. Accordingly, on 21.08.2008, INX News submitted fresh application for downstream investment.

5. Thereafter, on 02.09.2008, relying on Press Note No. 7 (1999 series) dated 01.04.1999, the then Additional Secretary, Department of Economic Affairs, Ministry of Finance wrote letter to the CBDT that investment of Rs.305 Crores was within the approval percentage of 46.216% of issued equity. Thereafter, on 24.10.2008, FIPB meeting was held and recommended the proposal for downstream investment. The Petitioner, the then Finance Minister, approved the downstream proposal of INX News on 30.10.2008. However, on 15.05.2017, after 10 years later, CBI registered an FIR alleging commission against Sh. Karti P. Chidambaram [arraigned as accused No. 3 in the said FIR under Section 120-B read with Section 420 of Indian Penal Code, 1860 (hereinafter referred to as `IPC'), Section 8 of the Prevention of Corruption Act, 1988 (hereinafter referred to `PC Act') and Section 13(2) read with Section 13(1)(d) of the PC Act.]

6. Mr. Kapil Sibal and Mr. Abhishek Manu Singhvi, Senior Advocates appeared on behalf of the Petitioner and submitted that the Petitioner is a citizen of India, resident of New Delhi