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Friday, February 11, 2011

Kalaignar TV denies link with 2G spectrum scam

11 Feb 2011

Chennai : The DMK's first family-owned Kalaignar TV today said it had no links with the 2G spectrum allocation scam in the wake of CBI's allegations 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 in grant of UAS licence and scarce radio waves, according
to submission made by the CBI in a Delhi court while seeking further remand of Raja.

'There is no link between the 2G spectrum allocation done in 2007-08 and the loan transaction that took place between
Kalaignar TV and Cineyug Films private limited in 2009', the channel Managing Director Sharad Kumar said.

In a statement, he said the transactions with Cineyug Films were an 'open book' and took place 'with the knowledge
of Income Tax Department officials'.

Terming the transaction an 'advance for transaction of shares', he said the sum received from Cineyug Films for
purchase of shares was returned with interest when the two parties differed over the price evaluation of shares.

'When there was a difference in the evaluation of shares, Kalaignar TV returned the Rs 200 crore that it had received
from Cineyug Films till August 2009. It also returned (to Cineyug Films) an interest of Rs 31 crore for the sum received.

'All these transactions took place with the knowledge of the Income Tax Department officials and the relevant taxes
(with respect to the transactions) have also been paid. Since the whole process has been carried out within the confines of
the law, this process is an open book', Sharad Kumar said.

The CBI had told the court: '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.' Kalaignar TV belongs to Sharad Kumar and others closely associated with Raja.

'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 said in its application. PTI

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