The Enforcement Directorate, in its criminal complaint against A. Raja and 10 others accused in a 2G spectrum case, has alleged that the refund of “proceeds of crime” by Kalaignar TV to Dynamix Realty made via two other firms had been arranged in a short duration from various entities to cover their tracks.
The complaint alleges that Kalaignar TV arranged the funds from various entities to pay back the amount with interest to Cineyug Films (CFPL) so as to conceal the proceeds of crime under the layer of repayment of loan along with interest. “The repayment was made through the same route of companies with the purpose of projecting the proceeds of crime as untainted”.
According to an ED complaint regarding alleged money laundering, Rs. 83 crore flowed in 25 instalments from Sapphire Media & Infrastructure (SMIL) to Anjugam Films (AFPL) between December 22, 2010 and January 18, 2011; and the like amount was transferred in 11 instalments from AFPL to Kalaignar TV around the same time period.
Funds of Rs. 60 crore was transacted from India Cements to Kalaignar TV in two instalments on January 18, 2011; whereas Rs.10.75 crore was transferred in seven instalments to Kalaignar TV from GIIL and Rs.24.50 crore in one transaction from USL.
Kalaignar TV further made refunds totalling 231.37 to CFPL in 11 instalments between December 20, 2010 and February 3, 2011.
The ED alleges that the refund by Kalaignar TV was made not only to project the refund as business transactions, but also to project the earlier receipt of funds as arising from bona fide business deal so as to conceal the true nature of bribe money (allegedly paid for UAS licence).
From the amount transferred by Kalaignar TV to CFPL, Rs. 225.08 crore was allegedly paid to Kusegaon Fruits and Vegetables (KFVPL), and subsequently KFVPL forwarded Rs. 223.55 crore to Dynamix Reality.
The ED probe revealed that Dynamix Reality further transferred the amounts to the entities which are part of DB Group, of which accused Shahid Usman Balwa was a shareholder/director. “However, all these entities were not the same from whom Dynamix Realty had received the funds”.
The funds, according to the agency, were transferred to DB Realty and Nihar Constructions.
The agency alleges that for all transactions between Dynamix Realty, CFPL, KFVPL and Kalaignar TV, there were no valid agreements signed between any of the parties as “a photocopy of the Share Subscription and Shareholders Agreement to this effect made on December 19, 2008, submitted by Kalaignar TV is not on stamp paper and is not enforceable in law”. Also, no collateral securities were ensued to secure the alleged loan amounts.
The refund was made after CFPL wrote to Kalaignar TV in October 2010 that it was not interested in making the investment in the company or converting the loan amount into shares, demanding repayment with interests.
The ED investigations under the Prevention of Money Laundering Act allegedly revealed that amount to the tune of Rs. 200 crore was paid by promoters of Swan Telecom (STPL) using their group entity Dynamix Realty to Kalaignar TV, through KFVPL and CFPL. “Whereas, in fact, this payment was illegal gratification for and on behalf of A. Raja and his associates in lieu of illegal favours given to STPL for grant of UAS Licence,” alleges the complaint by the ED, which has already attached properties worth Rs. 223.50 crore in the case.
