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2G probe: CBI targets DMK's TV channel

Source: PTI
Last updated on: February 18, 2011 11:34 IST
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The Central Bureau of Investigation raided the office of Kalaignar TV channel in Chennai in the wee hours of Friday. Kalagnar channel, which is backed by the Dravida Munnetra Kazhagam, has been under the scanner for its links with the 2G scam.

The raids came days after the channel claimed it had no links with the case. Official sources said searches began in the wee hours of Friday to probe certain financial transactions that could be connected to the spectrum scam.

The raids came in the wake of allegations that that there was a connection between accused Shahid Usman Balwa-promoted Swan Telecom and the channel. Balwa was allegedly favoured by former telecom minister A Raja while granting UAS licence and scarce radio waves.

DMK leader Raja, who was forced to resign over the scam, has already been arrested by the CBI.

Officials said the crux of the probe relates to the over Rs 200 crore loan arranged by Balwa's DB Realty group for Kalaignar TV.

DMK chief M Karunanidhi's wife MK Dayalu owns 60 per cent stake in Kalaignar while party Member of Parliament Kanimozhi has 20 per cent.

The CBI had told a court recently, "It has also come to light that there was a transaction of Rs 214 crore from M/s Cineyug Films private limited to Kalaignar TV in 2009."

"The funds were arranged by M/s Cineyug Films from DB Group companies wherein the family members of Balwa are the directors or shareholders," CBI had said in its application filed before the court.

Kalaignar TV's denial earlier had followed CBI's allegations that there was a connection between scam accused Balwa-promoted Swan Telecom and the channel.

Sharad Kumar, managing director of Kalaignar TV, had denied receiving pay-offs from DB realty, whose chief Balwa has also been detained by CBI.

Kumar had also said the sum received from Cineyug Films was an 'advance for transaction of shares', and was returned with interest when the two parties differed over the price evaluation of shares.

He had said that the money from Cineyug was received as a loan which had been repaid with interest and the Income Tax department was aware of the transaction.  

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