The Hindu : National : It's now over: Chidambaram

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Wednesday, Aug 31, 2005

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National

It's now over: Chidambaram

Special Correspondent

Makes statements in both Houses

NEW DELHI: Even as the United Progressive Alliance Government, the Congress and Finance Minister P. Chidambaram seem to believe that the storm over Nalini Chidambaram taking up an income tax case on behalf of the Central Board of Direct Taxes (CBDT) has blown over, there is more that may keep the Opposition agitated for some more time.

Mr. Chidambaram made statements in both the Houses — in the Lok Sabha on Tuesday and in the Rajya Sabha on Monday. As far as he is concerned, the "matter is now over" as he has sought to remove all doubts on the issues thrown up in the controversy.

As for the statement made by the All-India Anna Dravida Munnetra Kazhagam member in the Rajya Sabha, N. Jothi, the Finance Minister has denied any impropriety.

He also termed as false the insinuation made by Mr. Jothi about the textile mill belonging to Mr. Chidambaram's family.

In a three-page letter addressed to the Rajya Sabha Chairman, Mr. Jothi directed a set of queries to the Finance Minister on the family-owned Karpagambal Mills.

The member sought to know whether the shares of the mills were purchased by Mr. Chidambaram's son, Karthi with a bank loan on the basis of security in India or abroad and whether the lending bank was of Indian or foreign origin.

In response, while refusing to entertain these questions as they were not related to the issues involved, sources close to the Finance Minister said that as far as Mr. Chidambaram was concerned, the matter stood resolved.

First was the issue of the CBDT utilising the services of Ms. Nalini Chidambaram, which had been adequately explained.

Next was the issue whether Ms. Chidambaram was involved as CBDT counsel in the batch of cases in which Karpagambal Mills was a party.

This, the sources said, had also been dealt with in detail by Mr. Chidambaram by way of his statements in the two Houses.

Therefore, to now probe into how the family business was run, sources said, was "totally irrelevant as it does not arise from the original issue."

How the mills — a family-owned business since 1956 — are managed and run was totally the internal affairs of the family, the sources said.

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