The supplementary charge sheet, second since April 2 in the 2G spectrum allocation case, filed by the Central Bureau of Investigation on Monday in a court here, dwells at length on the role Kanimozhi, Rajya Sabha MP and daughter of Tamil Nadu Chief Minister and DMK chief M. Karunanidhi, played in incorporating Kalaignar TV Private Ltd. along with other promoters.

The 48-page charge sheet says Ms. Kanimozhi actively pursued with the intermediaries and the DMK headquarters reappointment of accused A. Raja as the Minister for Communications and Information Technology in 2009. This “clearly establishes the strong association of accused Kanimozhi and A. Raja in the official/political matters.”

The charge sheet says investigations revealed that there were a number of circumstances that together conclusively “establish that the amount of Rs. 200 crore paid by Dynamix Realty to Kalaignar TV through Kusegaon Fruits and Vegetables Pvt. Ltd. and Cineyug Films Pvt. Ltd. was not a genuine business transaction but was in the nature of illegal gratification paid in lieu of the Unified Access Service [UAS] Licences, valuable spectrum and other undue benefit given by accused public servants to Swan Telecom Pvt. Ltd.”

The charge sheet keeps its focus on establishing the money trail — the payment of the “illegal gratification” of over Rs. 200 crore to Kalaignar TV through a circuitous route. It says investigations revealed that for all the transactions of more than Rs. 200 crore among Dynamix Realty, Kusegaon Fruits & Vegetables Pvt. Ltd., Cineyug and Kalaignar TV, claimed to be in the nature of loan, no valid agreements were signed between any of the parties and no collaterals/securities ensured to secure the alleged loan amounts.

The charge sheet states that accused Asif Balwa and Rajiv B. Agarwal, directors of Kusegaon Fruits and Vegetables Pvt. Ltd. (now Kusegaon Realty Pvt. Ltd.), and Karim Morani, director of Cineyug Films Pvt. Ltd. (now Cineyug Media and Entertainment Pvt. Ltd.) in Mumbai, intentionally aided and facilitated the payment of an illegal gratification of Rs. 200 crore as a reward for undue favours shown to their group company Swan Telecom to Kalaignar TV on behalf of Mr. Raja, Kalaignar TV director and 20 per cent equity holder Sharad Kumar and Ms. Kanimozhi and “gave it a colour of a regular business transaction.”

“These facts and circumstances constitute commission of offence during 2007-2011, punishable under Section 120-B of the Indian Penal Code read with Section 7 of the Prevention of Corruption Act, 1988 against A. Raja, Sharad Kumar and Kanimozhi, and Section 12 of the PC Act, 1988 against Shahid Balwa, Vinod Goenka, Asif Balwa, Rajiv B. Agarwal and Karim Morani.”

The charge sheet sought to demolish the defence of the accused that the transactions of Rs. 200 crore among Dynamix Realty, Kusegaon Fruits & Vegetables Pvt. Ltd., Cineyug and Kalaignar TV were “genuine business transactions” in the nature of loans/advances. It lists 14 circumstances in support of the charge that the transaction amounted to illegal gratification.

Refund of amount

It says the refund of the entire amount began after the CBI registered the case. The refund started on December 23, 2010 and Mr. Raja was asked to join the CBI probe on December 24 and 25. On January 24, 2011, Rs. 65 crore was refunded. An amount of Rs. 25 crore was refunded on January 29 and Rs. 50 crore on February 2, 2011. “During this time around, media reports about the likely arrest of Mr. Raja started appearing and, on February 2, 2011, he was arrested.”

The charge sheet says the entire paid-up equity of Kalaignar TV was Rs. 10.01 crore and its entire income (turnover) for the year ending March 31, 2009, was only Rs. 47.54 crore. The paid-up equity of Cineyug during the same period was only Rs. 1 lakh and that of Kusegaon Fruits & Vegetable Pvt. Ltd. as on March 31, 2009 was only Rs. 1 lakh.

The charge sheet alleges that Rs. 200 crore was paid by Dynamix Realty to Kalaignar TV through intermediaries from December 23, 2008 to August 7, 2009, after the offshore investments in Swan Telecom from Etisalat Mauritius Ltd., and Genex Exim Ventures Pvt. Ltd. came in on December 17, 2008. The funds from which Kalaignar TV refunded Rs. 200 crore to Cineyug partly came from Anjugam Films Pvt. Ltd, said to be a subsidiary of Kalaignar TV.

Sharad Kumar's role

Referring to the role of Mr. Sharad Kumar, it says investigations disclosed that in June 2007, he, along with other promoters, incorporated Kalaignar TV after leaving the Sun TV network. He is a director and CEO of the company and has attended/chaired all the board meetings of the company wherein the decisions regarding the transactions in question were taken. He also signed all the agreements purportedly finalised with Cineyug. He was also visiting Mr. Raja in connection with pursuing pending works relating to Kalaignar TV.

On the role of Ms. Kanimozhi, the charge sheet says she was initially a director and resigned only for the reason that her clearance from the Home Ministry was pending and could take time and delay the matter of launching Kalaignar TV channel. “Accused A. Raja was further pursuing the cause of Kalaignar TV not only for getting registration of the company from the Ministry of Information and Broadcasting but also for getting it in the Tata Sky bouquet. Kanimozhi was a stakeholder of Kalaignar TV to the tune of 20 per cent equity and was an active brain behind its operations.” Ms. Kanimozhi was also widely covered by the Kalaignar Seithigal (news) channel, it points out.

On Mr. Karunanidhi's wife Dayalu Karunanidhi, who is the 60 per cent stakeholder in Kalaignar TV, the charge sheet says she was requested by the board to act as director of the company. “However, as per the minutes of the board meeting of July 27, 2007, she categorically informed [it] that in view of her old age and deteriorating health, she cannot be expected to give any attention to the company's affairs and requested Sharad Kumar to exercise degree of skill which may reasonably be expected of a person of his knowledge, experience, calibre and status. She also informed the board that due to her age and non-understanding of any language other than Tamil, after appointment as Director, she will attend the meeting only to suffice the legal requirement to have quorum and not for anything else,” says the charge sheet.

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