Mukherjee says no Chidambaram link in telecom deal

New Delhi: Amidst allegations from opposition over Home Minister P. Chidambaram's involvement in the 2006 Aircel-Maxis telecom deal, the government yesterday denied any wrongdoing in the deal.

Chidambaram tendered a clarification in the Rajya Sabha after fresh opposition uproar, while Mukherjee read out an identical statement in both houses.

Opposition alleged the company of the home minister's son was transferred money, before the Foreign Investment Promotion Board (FIPB) cleared a proposal from Aircel pertaining to its telecom service venture in 2006.

Chidambaram, who was finance minister at that time, said that no illegitimate transfers were made to any company involving any of his family members. "Neither I, nor any member of my family has any equity in any telecom company."

"Plunge a dagger in my heart rather than question my integrity," the minister said.

As the opposition insisted that the current finance minister should give a clarification, Mukherjee said in both houses that there was "no scope for misunderstanding and misinformation" on the issue.

"There was no delay in granting the approvals," Mukherjee said in his statement.

The issue was raised in the upper house by Leader of Opposition Arun Jaitley. He did not take any names, but alluded that Ausbridge — in which Advantage Consultancy, partly owned by Chidambaram's son Karthi, had a stake — received money from Aircel.

Board clearance

Seeking to give more details, Jaitley said Maxis, the Malaysian company which acquired shares in Aircel, had declared to Malaysian stock exchange that it acquired more than 99 per cent shares in Aircel.

But the Indian policy permits no more than 74 per cent share to foreign investors in telecom ventures. The money was allegedly transferred by Aircel chief C. Sivasankaran on the eve of FICB clearance to the Aircel-Maxis deal.

The home minister, however, said his "family" had nothing to do with Ausbridge. "It is true my son had shares in Advantage Consultancy. But young men have all the right to start a business. He invested Rs1.8 million in the company, which had another share holder — Rajesh," the home minister said.