2G: CBI searches offices of Kalaignar TV

It is being alleged that Rs 214 crore loan was arranged by DB Realty group to Kalaignar TV.

Updated: Feb 18, 2011, 23:32 PM IST

Chennai: CBI conducted searches at the
premises of DMK first family-run Kalaignar TV in connection
with its 2G spectrum scam probe and questioned the channel`s
senior officials including its Managing Director Sharad Kumar.

Sleuths of the agency reached the premises last night
and continued its searches till early morning, official
sources said today, adding, the team also examined channel`s
GM (Finance) G Rajendran.
Both Kumar and Rajendran were asked detailed questions
about the links with a 2G spectrum accused Shahid Usman
Balwa-promoted Swan Telecom and the channel when CBI officials
made queries about its finances.

The officials also seized certain crucial documents
during the searches.

The channel has refuted the allegations and said
action of the central agency was uncalled for.

Sources said the crux of the probe relates to the
over Rs 200 crore loan arranged by Balwa`s DB Realty group for
Kalaignar TV. Balwa was allegedly favoured by Raja in grant
of UAS licence and scarce radio waves.

DMK chief M Karunanidhi`s wife MK Dayalu and daughter
and party MP Kanimozhi own 60 per cent and 20 per cent stake
respectively in the channel.

Kanimozhi said she has not received any summons from
CBI in connection with its probe into the 2G spectrum
allocation scam.

"I haven`t got anything of that kind," she said when
asked about reports that CBI would question her as part of its
ongoing probe into the scam, in which former Union Telecom
Minister A Raja has been arrested.
Asked about the searches at Kalaignar TV, she said she
was not aware of it.

Kanimozhi told reporters that Kalaignar TV "has nothing
to hide," but refrained from making any comments on the
channel`s alleged links in the 2G spectrum scam.

She said that Sharad Kumar had explained everything, in
an apparent reference to his statement two days back denying
any links in the 2G spectrum allocation scam.

She refused to comment when asked if the latest
development would affect DMK-Congress seat-sharing talk

The CBI had told a court recently, "It has also come
to light that there was a transaction of Rs 214 crore from M/s
Cineyug Films private limited to Kalaignar TV in 2009.

"The funds were arranged by M/s Cineyug Films from DB
Group companies wherein the family members of Balwa are the
directors or shareholders", CBI had said in its application
filed before the court.

The allegations were refuted by Sharad Kumar who had had
said the money was an "advance for transaction of shares", and
was returned with interest when the two parties differed over
the price evaluation of shares.

He had said that the money from Cineyug was received
as loan which had been repaid with interest and the Income Tax
department was aware of the transaction.

However, senior officials of the agency said case of 2G
spectrum scam pertains to the year 2009 when the money was
handed over to Kalaignar TV.

"Returning money with interest does not absolve the
alleged criminality involved in the case," one of the
officials privy to the probe said.