"Kanimozhi's mistake is my mistake. It was I who compelled her to become a shareholder in Kalaignar TV with a view to settle her a base for her future," he said addressing a public meeting in his native constituency.
The 88-year-old former Tamil Nadu Chief Minister claimed that CBI, which is probing the case, had named his daughter, a Rajya Sabha member, since it had to hold someone accountable.
"What was earlier estimated to be a loss of Rs 1.76 lakh crore (caused to the exchequer by the alleged wrongful policies of jailed former Telecom Minster A Raja), has now shrunk to Rs 30,000 crore. What affected the company (Kalaignar TV) affected Kanimozhi," he said.
Kanimozhi, whom he said had taken all efforts for the party's victory in the April 13 Assembly polls, was "languishing in Tihar jail," in conditions not so favourable.
"The temperature there is such that a flower will dry in 10 minutes if it is kept in the open," Karunanidhi, who had met his daughter recently there, said.
He, however, said that his daughter was facing the situation and had asked his elder daughter Selvi to take care of him.
"She said she was not worried and asked us not to worry as the Dravidian movement had given her the strength," he said.