Kalaignar TV denies link with 2G spectrum scam

Posted By: Pti
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Chennai, Feb 11 (PTI) The DMK''s first family-ownedKalaignar TV today said it had no links with the 2G spectrumallocation scam in the wake of CBI''s allegations that therewas a connection between accused Shahid Usman Balwa-promotedSwan Telecom and the channel.

Balwa was allegedly favoured by former Telecom Minister ARaja in grant of UAS licence and scarce radio waves, accordingto submission made by the CBI in a Delhi court while seekingfurther remand of Raja.

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

In a statement, he said the transactions with CineyugFilms were an "open book" and took place "with the knowledgeof Income Tax Department officials".

Terming the transaction an "advance for transaction ofshares", he said the sum received from Cineyug Films forpurchase of shares was returned with interest when the twoparties 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 receivedfrom Cineyug Films till August 2009. It also returned (toCineyug Films) an interest of Rs 31 crore for the sumreceived.

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

The CBI had told the court: "It has also come to lightthat there was a transaction of Rs 214 crore from M/s CineyugFilms private limited to Kalaignar TV in 2009." Kalaignar TVbelongs to Sharad Kumar and others closely associated withRaja.

"The funds were arranged by M/s Cineyug Films from DBGroup companies wherein the family members of Balwa are thedirectors or shareholders", CBI said in its application. PTIARP RA SC

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