2G scam: CBI conducts searches at DMK-owned Kalaignar TV

Friday, February 18, 2011

CHENNAI - The Central Bureau of Investigation (CBI) today carried out searches at the office of the Dravida Munnetra Kazhagam (DMK)-owned television channel-Kalaignar TV -in connection with the 2G scam.

The CBI suspects that some amount of payoffs in the scam may have been diverted to the channel.

The investigating agency had alleged last week that a Rs. 200-crore cheque was sent from Mumbai to Chennai in 2009, which ended up with Kalaignar TV.

Earlier, Kalaignar TV managing director Sharad Kumar said: “There is no connection between the spectrum allocation made in year 2007-2008 by the Department of Telecom and the loan given by the Cineyug Communications to Kalaignar TV in 2009.”

“Cineyug gave Rs 200 crore as an advance to Kalaignar TV for the shares. But due to differences in the share values, Kalaingar TV assumed it as a loan till August 2009. And Kalaignar TV returned the money,” he said.

“Rs 31 crore was given as an interest. The same was informed to the I-T department. And tax has been paid for this. Everything was done within the legal framework. It is an open book,” he added.

The probe into the 2G scam has shown links between Swan Telecom promoter Shahid Usman Balwa and Kalaignar TV.

Balwa, linked to Swan Telecom, which was allegedly favoured by former Telecom Minister A Raja in grant of UAS license and scare radio waves, according to CBI submission in a local court while seeking further remand of Raja.

Balwa was the fourth high profile person arrested in connection with the scam.

The others arrested in connection with the case are A Raja, his personal secretary RK Chandolia and former Telecom Secretary Siddharth Behuria.

Raja was forced to resign from the Union Cabinet last year after the Comptroller and Auditor General of India (CAG) faulted him for undervaluing spectrum to favour companies whch were largely ineligible for 2G spectrum. (ANI)

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