M A I N   N E W S

2G Spectrum Scam
CBI raids DMK-owned Kalaignar TV channel
N Ravikumar/TNS

The raid was conducted in the presence of management officials of the DMK channel, which had denied that it had any role in the 2G Spectrum case. The probe is related to a few financial transactions in connection with the case, in which DMK propaganda secretary and former Union Minister A Raja has already been arrested.

The raids follow allegations of links between Swan Telecom, promoted by Shahid Usman Balwa and one of the accused in the case, and the Kalaignar TV channel. The purpose of the probe related to a loan of Rs 200 crore arranged for Kalaignar TV by the DB Realty Group, which is owned by Balwa. The CBI counsel in his submission to the court had said Rs 213 crore was given by Cineyug Films Private Limited to Kalaignar TV in 2009.

He had claimed that the funds were arranged by Cineyug Films from the DB Group companies which had family members of Balwa as directors or shareholders. Kalaignar TV had issued a denial soon after the CBI submission in the court. The TV management had said 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 the shares.

It 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. 

Balwa follows Raja to Tihar Jail

Swan Telecom promoter Shahid Usman Balwa, arrested for his alleged involvement in the 2G spectrum scam along with former Telecom Minister A Raja, was on Friday sent to Tihar Jail after a Delhi court remanded him in judicial custody.