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The DMK’s first family-owned Kalaignar TV has said that it had no links with the 2G spectrum allocation scam in the wake of CBI allegations that there was a connection between the accused Shahid Usman Balwa-promoted Swan Telecom and the channel.
Mr Balwa was allegedly favoured by the former Telecom Minister, Mr A. Raja, in the grant of unified access service (UAS) licence and scarce radio waves, according to submission made by the Central Bureau of Investigation in a Delhi court while seeking further remand of Mr 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 Ltd in 2009,” the channel Managing Director, Mr 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”, Mr Sharad Kumar said.
CBI had told the court: “It has also come to light that there was a transaction of Rs 214 crore from Cineyug Films Pvt Ltd to Kalaignar TV in 2009.” Kalaignar TV belongs to Mr Sharad Kumar and others closely associated with Mr Raja.
“The funds were arranged by Cineyug Films from DB Group companies wherein the family members of Balwa are the directors or shareholders”, CBI said in its application.
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