Kalaignar TV denies link with 2G scam
Shahid Balwa arranged the transfer of Rs 214 cr from M/s Cineyug to Kalaignar TV in 2009.
Chennai: The DMK`s first family-owned
Kalaignar TV Friday said it had no links with the 2G spectrum allocation scam in the wake of CBI`s allegations that there
was a connection between accused Shahid Usman Balwa-promoted Swan Telecom and the channel.
Balwa was allegedly favoured by former Telecom Minister A Raja in grant of UAS licence and scarce radio waves, according
to submission made by the CBI in a Delhi court while seeking
further remand of Raja.
"There is no link between the 2G spectrum allocation done
in 2007-08 and the loan transaction that took place between
Kalaignar TV and Cineyug Films private limited in 2009", the
channel Managing Director Sharad Kumar said.
In a statement, he said the transactions with Cineyug
Films were an "open book" and took place "with the knowledge
of Income Tax Department officials".
Terming the transaction an "advance for transaction of
shares", he said the sum received from Cineyug Films for
purchase of shares was returned with interest when the two
parties differed over the price evaluation of shares.
"When there was a difference in the evaluation of shares,
Kalaignar TV returned the Rs 200 crore that it had received
from Cineyug Films till August 2009. It also returned (to
Cineyug Films) an interest of Rs 31 crore for the sum
"All these transactions took place with the knowledge of
the Income Tax Department officials and the relevant taxes
(with respect to the transactions) have also been paid. Since
the whole process has been carried out within the confines of
the law, this process is an open book", Sharad Kumar said.
The CBI had told the court: "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." Kalaignar TV
belongs to Sharad Kumar and others closely associated with
"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 said in its application.