Apart from the fact that the money has been laundered, there are security implications as well.
Etisalat, a UAE Company has been, indirectly initially, directly later,allotted sensitive telecommunication sector, by way of licence.
Again as Subramanian Swamy has stated ther is a link between Etisalat,Pakistan’s ISI and Dawood Ibrahim.
Swann telecom sold the licence to Etisalat shortly after being allotted the licence at whooping price.
Swann Telecom is reported to be a front company of a leading Business house in India.
Now Karunanidhi is implicated in all these transactions through intermediaries.
Check the fact that the gentle man who has been raided spent most of his business time in in Dubai and he belongs to a particular community ; he has been chosen to be the intermediary because of religious proximity to powers in UAE/Dubai.
Scam apart, these scamsters have compromised national security.
Is some one listening?
Or is every thing being sacrificed for electoral gains?
If these people continue in this vein they shall have no India to loot further.
NEW DELHI: Investigating agencies probing the alleged irregularity in allocation of 2G licences are examining a transaction in which over Rs 200 crore was transferred from Mumbai-based DB group to Kalaignar TV, a broadcaster majority-owned by family members of DMK party chief M Karunanidhi .
The reason for the transaction—in which Rs 214 crore was transferred in fiscal 2009-10 from a subsidiary of DB Realty to Kalaignar TV by way of two other companies—was for an entity called Cineyug to pick over 30% in the TV channel, says a senior DB Realty official.
But the deal fell through because of valuation differences and the money has since been repaid, the official—Asif Balwa, DB Realty’s CFO and executive director—said.
Officers from investigating agencies are interested in the deal because the telecom arm of DB Realty figures among the companies that bagged 2G licences in 2008. A Raja , the controversial former telecom minister and a leading light of the DMK who was arrested by the Central Bureau of Investigation (CBI) on Wednesday, was in charge when the licences were handed out, allegedly at below-market prices.
The DB group’s telecom arm had sold 45% to UAE-based Etisalat for $900 million in 2009. The company, earlier known as Swan Telecom, is now known as Etisalat-DB.
Three-legged deal
The officials from the investigating agencies say the money was transferred in three stages in the course of financial year 2009-10. The first involved transfer of money of around Rs 200 crore from Dynamix Realty to Kusegaon Realty Pvt Ltd.
Cineyug denies links with DB
DB Realty, according to its 2009-10 annual report, owns 99% in Dynamix Realty, a partnership firm. In turn, Balwa and another DB Realty employee, Rajiv Agarwal Batekrishna, have equal stake in Kusegaon Realty, as per documents filed with the Ministry of Corporate Affairs, or MCA.
In the second leg, Kusegaon Realty invested Rs 206 crore in Cineyug Films Pvt Ltd. This amount is classified under the loans and advances category in the audited annual accounts of Kusegaon in 2009-10. Kusegaon owns 49% of Cineyug and the rest is held by the Morani brothers, who run event management companies, according to MCA flings.
For both Cineyug and Kusegaon, the transfer of money amounting to around Rs210 crore accounted for more than 95% of the total balance-sheet size.
In the final leg, Cineyug gave Rs214.8 crore as advances to Kalaignar TV in 2009-10, according to filings with MCA. The owners of Cineyug denied any links with DB Realty.
“There is no business association between Cineyug and DB group. The transaction between Kusegaon and Cineyug is purely a business transaction and at present Kusegaon owns a stake in Cineyug,” says Karim Morani, promoter of Cineyug in a faxed reply to a questionnaire sent by ET. “However, I know the promoters of DB Group, i.e. Vinod Goenka, for the last 40 years,” he adds. DB Realty is owned by Shahid Balwa and Goenka.According to both Morani and Asif Balwa, the money (Rs214 crore) was transferred to acquire 27-34% of Kalaignar TV, but the deal did not transpire because of differences in valuation.
At this stage, says Balwa, there was no option but to convert what was originally intended to be share subscription money into a loan.
“The loan was secured against an agreement to pledge 100% shares of the promoters of Kalaignar TV which gave a cover of 2.5 times the amount of loan,” he says. The money has subsequently been repaid with interest, according to Balwa.
‘Kalaignar professionally run’
Karunanidhi’s wife MK Dayalu and daughter Kanimozhi own 60% and 20% of Kalaignar TV, respectively. But Sharad Kumar, who owns 20% of Kalaignar TV, says the two ladies had no role whatsoever in any of this.”We were looking at investors and we contacted some people. Morani and I go back a long way so this worked out.
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