"This is not a witch hunt or a political vendetta", Additional Solicitor General (ASG) Tushar Mehta told the Patiala House court in the national capital, where Karti was produced today following his arrest in Chennai on Wednesday morning.
The couple, who have been in jail since 2015 on charges of murdering Ms Mukerjea's daughter Sheena Bora, have given a statement that has linked the former Union Finance Minister to the CBI case filed against Karti Chidambaram.
Singhvi asked if Karti has done something illegal while being overseas, why didn t CBI file a contempt petition before the court which allowed him to travel overseas.
At the outset, the court allowed the request of Karti's lawyers to have an interaction with the accused inside the court room for 10 minutes, after which the proceedings resumed.
CBI officials said Indrani has "confessed" about "bribing" Karti for the investment clearance and that she had also met P Chidambaram. The board is the nodal agency for granting approvals to companies to access foreign funds.
Karti was produced before the court on expiry of one-day CBI custody amidst the presence of his parents P Chidambaram and Nalini Chidambaram, both senior advocates, and were seen talking to him. It has been alleged that the approval was granted when Karti's father and senior Congress leader P Chidambaram was the Union finance minister during the previous UPA regime.More news: Union members rally in Salinas against Supreme Court case
"The whole issue of arrest is motivated and illegal and not justified. He hasn't been given a single summon in the last 6 months", Singhvi added.
A document accessed by the site read: "It was further admitted that Karti Chidambaram suggested the names of Chess Management and Advantage Strategic as alternatives to make payments".
The CBI had claimed that M/s Global Communication Services Holdings Ltd had sought FIPB approval for 800 million Dollars for which only the CCEA was competent, but Chidambaram had given approval to the firm in March 2006.
"There is material on record to satisfy the conscience of the court", Mehta, who appeared for the CBI as a special public prosecutor, said.
Previously, Singhvi aimed a jibe at the instances of businessmen leaving the country with no intention to return after alleged financial wrong-doing, saying Karti was not a "Hindustan leaver" but a "returner". No grounds of arrest have been furnished to him. ASCPL, the CBI said, was "indirectly controlled by Karti". At the time, the company was owned by Peter and Indrani Mukerjea.
"This is the character of investigating organisations in India today who are no longer caged parrots, but a singing parrot of the government", Sibal said. Party spokesperson Randeep Surjewala said the government was seeking "political vendetta" to mask the "culture of colossal corruption and cronyism" flourishing unchecked, and that "puppet CBI and ED" were being used to "divert, deflect and distract" attention from scams worth Rs 31,691 crore exposed in the last 10 days.