Kalaignar TV office raided by CBI in Chennai

The CBI(Central Bureau of Investigation) raided the  Kalaignar TV office in Chennai  today(Friday 18th Feb 2011). Kalaignar TV, which is backed by the Dravida Munnetra Kazhagam(Karunanidhi’s wife MK Dayalu owns 60 percent and daughter Kanimozhi owns another 20 percent ) , has been under the scanner for its links with the 2G spectrum scam for some time, Earlier this week the Channel had claimed it had no links with the case.

The raids came in the wake of allegations after Documents with CNN-IBN show that money was loaned to DMK’s Kalaignar TV by DB Realty group through a maze of transactions. DB Realty is owned by Shahid Balwa who has a stake in Swan Telecom which is one of the companies named in the 2G scam. Balwa was allegedly favoured by former telecom minister A Raja while granting UAS licence and scarce radio waves.

Shahid Balwa. A Special CBI Judge on Friday remanded him in judicial custody till March 3

Official said Rs 214.84 crore is reflected in Kalaignar TV’s balance sheet as an unsecured loan. It comes from Cineyug Media and Entertainment Pvt Ltd and the exact amount is Rs 214.8654 crore. It is given to Kalaignar TV as an unsecured loan in the company’s balance sheet for the year 2009-2010.

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

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, 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.