Kalaignar TV says Cineyug loan not linked to 2G spectrum

February 11th, 2011 - 3:37 pm ICT by IANS  

Chennai, Feb 11 (IANS) Kalaignar TV Friday denied any link between the Rs.200 crore loan it got from Cineyug Communications and the 2G spectrum allocation.The Tamil television channel is promoted by Tamil Nadu Chief Minister M. Karunanidhi’s wife and daughter.

However, AIADMK general secretary J. Jayalalithaa Friday insisted the two were linked and Karunanidhi and his family should be included in the 2G spectrum scam case as co-accused.

Kalaignar TV managing director Sharad Kumar said in a statement: “There is no connection between the loan deal the company signed in 2009 with Cineyug and the 2G spectrum allocation made in 2007-2008.”

According to him, in 2009 Cineyug gave some money as advance towards the acquisition of stakes in Kalaignar TV.

“Owing to the differences in valuation of the shares of two companies, a sum of Rs.200 crore received till August 2009 was considered as a loan and was paid back by Kalaignar TV alongwith an interest of Rs.31 crore,” he said.

Kumar also said the transaction was reported to the income tax department and the relevant tax had been paid. The whole transaction was within law, he claimed.

Karunanidhi’s wife Dayalu and daughter Kanimozhi are the major promoters of the company that owns the Kalaignar TV channel.

In a statement Friday, Jayalalithaa said there were links between the 2G spectrum alocation and the Rs.200 crore loan Cineyug gave Kalaignar TV.

“The then union telecom minister Raja sold valuable 2G spectrum to Swan Telecom, a new company launched by Dynamix Balwa, a Mumbai-based real estate company, at a throwaway price of Rs.1,537 crore.”

“Soon afterwards, Dynamix Balwa sold 45 percent of its holdings to the UAE-based Etisalat for Rs.4,200 crore.”

“For facilitating this highly profitable sale, Dynamix Balwa pays kickback to Raja’s master, Karunanidhi. But the payment is not made directly,” Jayalalithaa clamied.

She said that in order to avoid attracting the attention of the Income Tax authorities, Balwa transferred funds totalling Rs.209.25 crore from 11 different companies he controlled to Kusegaon Fruits and Vegetables, owned by Asif Balwa and Rajiv Agarwal.

“From this, Kusegaon transferred Rs.206.25 crore to Cineyug Films, owned by the Balwas and Morani. Cineyug’s balance sheet for 2009-10 shows that an unsecured loan of Rs.206 crore was given to the Chennai-based Kalaignar TV,” the former chief minister alleged.

Jayalalithaa added: “Karunanidhi and his family members deserve to be included in the 2G Spectrum scam case as co-accused. Only then can the whole truth be unearthed. Only then will justice be served.”

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