As the focus in the 2G spectrum allocation investigation shifts to telecom companies, the arrest of Swan Telecom promoter Shahid Balwa looks imminent. Sources said the CBI has summoned him for interrogation for the fourth time on Saturday.
Balwa is a key player in the fraud and an ongoing Enforcement Directorate (ED) probe has shown that his flagship company, DB Realty, provided a `214 crore unsecured loan to Karunanidhi's channel Kalaignar TV. The ED is finding out if the money was linked to the 2G scam and quid pro quo for favours to Swan Telecom by former Telecom Minister A Raja.
According to a newspaper report on Friday, investigators are looking into the money transfer from Balwa's firms to Kalaignar TV through three interlinked firms during the spectrum scam period.
The reports said Dynamix Reality, owned by DB Realty, had transferred `209 crore as unsecured loan to Kusegaon Reality in 2009. A majority stake in Kusegaon Reality is owned by DB Realty's chief financial officer Asif Balwa, brother of Shahid.
Kusegaon Reality then transferred `206 crore as loans and advances to Mumbai-based Cineyug Media, in which the lender has 49 per cent shares. Then, Cineyug Media transferred `214 crore to Kalaignar TV as unsecured loan.
In the DMK-controlled Kalaignar TV, 60 per cent of shares are held by Karunanidhi's second wife Dayalu Ammal's family and 20 per cent by Kanimozhi. The remaining 20 per cent is controlled by broadcasting expert Sharad Kumar, who technically oversees channel operations.
According to sources, Balwa's initial plan was to pick up 30 per cent in Kalaignar TV but the move was shelved due to differences over valuation. Balwa is also believed to have transferred huge amounts of money directly to Raja's benami company Greenhouse Promoters during the scam period. The CBI reportedly seized incriminating documents during its three-day search in the third week of October, when Raja was still the Minister, according to sources.
Meanwhile, Kumar has denied any links to the DB Realty money trail. He also said they only had a deal with Cineyug and that it was his own decision to accept funds, nothing to do with the Karunanidhi family. Both Kalaignar TV and DB Group have said the money was paid back with interest but apparently, there was no documentation to support that.
Reacting to a report, DB Realty issued a clarification, saying, "DB Realty denies giving any loan or investment to KTV directly or indirectly. DB Realty has no business association with Cineyug or KTV."
This is not the first time the Karunanidhi family has been linked with Swan's money trail. Swan Telecom, now known as Etisalat DB Telecom, had allotted shares worth `380 crore (5.7 per cent) to Genex Exim, a little-known, newly-constituted company from Chennai.
This company is related to Karunanidhi's close associate Sayed Salahuddin, the NRI tycoon who owns UAE-based ETA Star Escon. Salahuddin is a leading contractor and has constructed most flyovers in Tamil Nadu from 1970 and the new Legislature Complex. His Star Health Insurance is the State Government's associate in public health insurance.
On the Home Ministry's objection, Genex Exim's plan to sell its shares to Etisalat was blocked by the Foreign Investment Promotion Board.
Meanwhile, the CBI on Friday questioned Department of Telecom (DoT) former deputy director general of Access Service-Division I AK Srivastava. Srivastava turned up at CBI headquarters at 10.05 am and was grilled till evening. The former official was also confronted with the arrested accused — former Telecom
Minister A Raja, former Telecom Secretary Siddharth Behura and Raja's former private secretary RK Chandolia — according to official sources.
DoT official RK Gupta also appeared as a witness. Sources said Gupta's cooperation was sought with a view to ascertain certain file notings related to the controversial allotment of the spectrum.
With Raja remaining defiant, officials did not rule out the possibility of subjecting him to lie-detector tests. Meanwhile, the ED is likely to examine documents related to the income of Raja's brother A Kaliaperumal, S Krishnamurthy and Father Jagath Gasper.
Official sources indicated that more arrests are likely with a view to extend custodial remand of Raja, Behura and Chandolia. All persons whose premises were searched last month will be cross-examined by the agency in the coming days.(Source : The Pioneer)
India's biggest scam is 2G spectrum allocation scam. That probe money neaarly Rs. 214 crore was invested in Kalaignar TV run by the popular political party in southern India DMK' chief Karunanidhi family including his daughter Kanimozhi and others (Source : HEADLINES TODAY )
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Raja made 3,000cr in bribes and Kalaignar TV received 200 crore as loan.by jollyboy263,275 views
Kalaingar is a fraud and money scammer
deepan12345 1 year ago