Tax evasion case: Madras HC stays proceedings against Karti, wife

In a major relief to Karti Chidambaram and his wife Srinidi, the Madras High Court on Tuesday (January 21) granted an interim stay till January 27, on the proceedings against the the duo in connection with a case of alleged income tax evasion, pending before a lower court.

Justice M Sundar, before whom the petition by Karti and his wife, seeking to stall the proceedings before the special court constituted to hear cases related to MPs and MLAs came up for hearing, granted an interim injunction till January 27.

Also read: IT raids brokers, traders suspected of tax evasion worth ₹3,500 crore

The matter relates to the alleged non-disclosure of ₹1.35 crore received by Karti, son of former union minister P Chidambaram, and his wife Srinidhi in cash for sale of land at Muttukadu near here.

The lower court, which is proposed to frame charges is restrained from doing so because of the interim stay.

The petitioners have submitted that the transaction was completed and returns of income were filed in 2015 when Karti was not a member of Parliament.

The deputy director of income tax Investigation, Chennai, had filed a complaint on September 12, 2018 against the petitioners before the Additional Chief Metropolitan Magistrate Court-II (Economic Offences) for offences under sections 276c(1) and 277 of the I-T Act.

The case was later transferred to the special court.

(With inputs from agencies)