Citing a transaction between Cineyug Films and Kalaignar TV, which is being investigated as part of the CBI probe into the 2G spectrum allocation scam, AIADMK general secretary Jayalalithaa said on Friday that it had “striking parallels” with the transactions mentioned in the Sarkaria Commission's findings against the DMK government in the 1970s.
“Convoluted accounting patterns and devious, difficult-to-track money trails” were features common to the earlier allegations against the DMK leadership and the emerging details of the 2G scandal,” she said in a statement.
She demanded that Chief Minister M. Karunanidhi and his family members be made co-accused in the spectrum case. Only then could the whole truth be unearthed and the interests of justice served.
“Throwaway price”
Ms. Jayalalithaa said that soon after 2G spectrum was sold to Swan Telecom, a new company launched by Dynamix Balwas, a Mumbai-based real estate company, at a “throwaway price” of Rs.1,537 crore, Dynamix Balwa sold 45 per cent of its holdings to the UAE-based Etisalat for Rs. 4,200 crore. Following this, Dynamix Balwa transferred funds ranging from Rs. 25 lakh to Rs. 100 crore, totalling Rs. 209.25 crore, from 11 different companies to Kusegaon Fruits & Vegetables, a company owned by Asif Balwa and Rajiv Agarwal.
“From this, Kusegaon transfers Rs. 206.25 crore to Cineyug Films, owned by Balwas and Morani. Cineyug's balance sheet for 2009-10 shows that an unsecured loan of Rs.206 crore was given to the Chennai-based Kalaignar TV,” she said.
(The CBI cited this transaction while seeking extension of police custody for Mr. Raja in a Delhi court on Thursday).
No link: Kalaignar TV
Meanwhile, Kalaignar TV has said there is no connection between the spectrum issue and its business transactions with Cineyug.
In a statement, its managing director Sharad Kumar said Cineyug paid an advance to Kalaignar TV for purchase of shares. “However, as there was a difference of opinion over the valuation of the shares, the advance of Rs. 200 crore was treated as a loan and the entire amount returned to Cineyug, with an interest of Rs.31 crore,” he said.
The transaction was reported to the Income Tax Department and tax paid on it. “Everything was within the law, and the transaction is an open book,” Mr. Kumar said.
