India Cements Ltd. on Friday said payments made by it to Kalaignar TV related to commercial advertisement contracts made in the normal course of business.
“The company wishes to clarify that it [payments to Kalaignar TV] relates to commercial advertisement contracts for its products and cricket franchise ‘Chennai Super Kings' made in the normal course of business,” India Cements Ltd. said in a release here.
The release was issued in response to newspaper reports that the Central Bureau of Investigation had sought a clarification from India Cements Ltd. and the UB Group on the money they gave to Kalaignar TV.
The reports said the CBI wanted to know whether the payments were intended to help the channel repay Rs. 200 crore it received from the DB Group, allegedly as quid pro quo for 2G licences and spectrum.
The UB group too clarified that its “only commercial transaction” with Kalaignar TV is a regular advertising contract, which is “in the ordinary course of business.”