The Delhi High Court on Wednesday stayed proceedings against Congress leader and former Union Minister P Chidambaram in a money laundering case connected to the Aircel-Maxis case.

Justice Manoj Kumar Ohri ordered that the proceedings against Chidambaram shall remain stayed till the next date of hearing.

"I will pass a detailed order," the single-judge, while issuing notice to the Enforcement Directorate (ED).

Chidambaram moved the High Court challenging the trial court order taking cognizance of the complaint moved by the ED against him and his son Karti Chidambaram in the Aircel-Maxis case.

Senior Advocate N Hariharan, who represented the former Union Minister, argued that the cognizance could not have been taken without prosecution sanction.

Advocates Arshdeep Singh and Akshat Gupta assisted Hariharan.

Advocate Zoheb Hossain represented the ED.

The case pertains to the alleged irregularities in the Foreign Investment Promotion Board (FIPB) approvals granted to the Aircel-Maxis deal at the time when Chidambaram was Union Finance Minister. 

It is the prosecution’s case that Chidambaram, at the time when the ₹3,500 crore Aircel-Maxis deal went through, and his son Karti, received certain kickbacks to ensure FIPB clearance for the deal.

Both the CBI and the ED filed their respective charge sheets and complaints in the case in July 2018.

Pertinently, the Supreme Court recently held that ED also is required to seek sanction under Section 197 of the Code of Criminal Procedure (CrPC) to prosecute public servants under the Prevention of Money Laundering Act (PMLA).

"Considering the object of Section 197(1) of the CrPC, its applicability cannot be excluded unless there is any provision in the PMLA which is inconsistent with Section 197(1). No such provision has been pointed out to us. Therefore, we hold that the provisions of Section 197(1) of CrPC are applicable to a complaint under Section 44(1)(b) of the PMLA," the Court said in its judgment.