1. 2G scam: India Cements paid Rs 60 cr to KTV, says witness

2G scam: India Cements paid Rs 60 cr to KTV, says witness

Owner of IPL's Chennai Super Kings franchise, India Cements Limited, had paid Rs 60 crore in 2011 to Kalaignar TV Pvt Ltd...

By: | New Delhi | Updated: November 29, 2014 10:04 AM
An amount of Rs 60 crore was paid to Kalaignar TV (P) Limited in 2011, said the witness. (Reuters)

An amount of Rs 60 crore was paid to Kalaignar TV (P) Limited in 2011, said the witness. (Reuters)

Owner of IPL’s Chennai Super Kings franchise, India Cements Limited, had paid Rs 60 crore in 2011 to Kalaignar TV Pvt Ltd, an accused firm facing trial in a 2G scam related money laundering case, for advertising its products, a prosecution witness today told a Delhi court.

Deposing as a witness in the case, Vice President of India Cements Ltd R Muralidhar told Special CBI Judge O P Saini that the purpose of paying this amount to the channel was to advertise their products and also publicise its CSK franchise during the IPL.

On being asked by Enforcement Directorate’s prosecutor N K Matta whether any payment was made by the firm to the channel, Muralidhar said, “An amount of Rs 60 crore was paid to Kalaignar TV (P) Limited in 2011.”

“This is the first time we have entered into a long-term electronic media contract with Kalaignar TV (P) Limited. We have not entered into long-term contract with any other TV channel,” he said.

During the cross-examination by advocate Vijay Aggarwal, who appeared for various accused in the case including Swan Telecom Pvt Ltd (STPL) promoter Shahid Usman Balwa, Muralidhar said India Cements Ltd had not committed any “illegality” by entering into the contract with Kalaignar TV Pvt Ltd (KTV).

“It is correct that entering into such stand alone agreements is as per business practice. By entering into this contract, our company has not committed any illegality, rather we have not committed any illegality. We were not aware as to where the funds transferred by us in response to the agreement would be utilized by Kalaignar TV (P) Ltd,” he said.

Former Telecom Minister A Raja, MP Kanimozhi, DMK leader M Karunanidhi’s wife Dayalu Ammal, STPL promoters Shahid Usman Balwa and Vinod Goenka and 14 others, including nine firms, are facing trial in the case in which the ED had on April 25 filed a charge sheet against them for alleged offences under the Prevention of Money Laundering Act (PMLA).

The court had on October 31 framed charges against the 19 accused, 10 individuals and nine companies, saying that Raja, allegedly in connivance with Kanimozhi, Dayalu Ammal and other co-accused, was involved in “parking” of illegal gratification of Rs 200 crore in Kalaignar TV.

During the recording of statement, Muralidhar told the court that, “The money transferred by us to Kalaignar TV (P) Ltd from our lawful source and the same did not bear any taint.”

He also said that the agreement regarding advertisement with Kalaignar TV was a “legitimate business transaction” and their firm benefited hugely from the media exposure through the channel.

During the day’s proceeding, the court also recorded the statement of another prosecution witness, S Ananda Prasad, a senior general manager (taxation) of United Spirits Ltd.

Prasad said that as per January 25, 2011 agreement with Kalaignar TV for a long term advertisement contract for eight years, a sum of Rs 65 crore was paid after deducting tax on January 27, 2011 in three or four tranches.

He also deposed there was no illegality in the transaction with Kalaignar TV.

This is the second case in the 2G scam in which Raja, Kanimozhi and others, including Shahid Balwa and Vinod Goenka, are facing trial for their alleged roles.

The other individual accused in the money laundering case are Directors of Kusegaon Fruits and Vegetables Pvt Ltd Asif Balwa and Rajiv Agarwal, Kalaignar TV MD Sharad Kumar, Bollywood producer Karim Morani and P Amirtham. All of them are out on bail.

The court had also framed charges against accused firms –STPL, Kusegaon Realty Pvt Ltd (formerly Kusegaon Fruits and Vegetables Pvt Ltd), Cineyug Media and Entertainment Pvt Ltd (formerly known as Cineyug Films Pvt Ltd), Kalaignar TV Pvt Ltd, Dynamix Realty, DB Realty Ltd, Eversmile Construction Company Pvt Ltd, Conwood Constructions and Developers (P) Ltd and Nihar Constructions Pvt Ltd.

In the first case probed by CBI, Raja, Kanimozhi, Shahid Balwa, Goenka, Asif Balwa, Rajiv Agarwal, Morani and Sharad Kumar, along with nine others, are facing trial for alleged criminal breach of trust, conspiracy, forgery, cheating and other offences punishable under IPC and the Prevention of Corruption Act.

  1. H
    Harry Potter
    Dec 1, 2014 at 3:26 pm
    SPOT LIGHT - L&T. Just like BCCI/IPL L&T is also a "cozy private club", a lod-men profit center, an oligarchy, sort of Geritocracy - by for and of old to very old not-ready-to-retire nearly or above age of 70 years top bres, leading the pack 72 years old Geriatric-in-Chief, junior engineer turned Executive Chairman Mr Naik, enjoying compensation of 30 cores and hundreds of crores in profits sharing and stocks. Indeed septuagenarians are going great guns without any check, as if L&T is their personal fiefdom. --------------------------------------------------------------------Modi Euphoria (rock star at Madison Square, Make In India, Swachch Bharat etc) and upbeat in international outlooks of Indian economy saved L&T going below Rs 1300 a piece during q2, a striking closed range of 1200 (plus) of March 2014. L&T top-bres were on selling spree March-2014, leading the pack Chairman Mr Naik sold his L&T shares (in range of Rs 1200 apiece) worth 70 crores in 20 days - March 2014. -----------------------------------------------------------------LnT top-bres have displa typical geriatric of biting more than they can chew and digest. Expecting VGF of 3k crores for Hyderabad Metro, crying foul on name of policies for their defence adventures. Viability Gap Funding of 3k cr should be from pockets of top 50 LnT bres, Rs 60 cr each. Why to put exchequers money? How many farmers get this thing 'VGF' before committing suicide? LnT top bres were on a selling spree, leading the pack Mr Naik sold shares worth 70 crores in 20 days - March-2014. Please refer Forbes India cover story – "LnT's defence dilemma" - "LnT Armed but not commissioned". 900 crores of losses at shipbuilding, 5000 crores of "ahead in time" investment stagnating. Do they want VGF from GoI, bail-out? Implemented international hydrocarbon projects for losses 900 crores, did they receive any VGF? or some international CSR? GOI should intervene to stem the rot at LnT. Please refer TOI article – whistleblower was right: CBI. Excerpts - "Golden Quadrilateral Project -- M/s LnT had misrepresented the facts". Please refer International Business Times article - $100 Million Sought as New Discrimination, Immigration Violations Complaint Filed against LnT. Please refer ET article – World Bank bars LnT for 6 months over forgery.-----------------------------------------------------------------------------------Expensive CXO Kumbh Mela at LnT a fiefdom of septuagenarians. What is the number of CEOs at LnT and all its subsidiaries (138), their CTC? How far higher, this is to manage LnT group $14 bln of revenues than Mr Sikka of Infosys highest paid professional CEO (Rs 30 cr) in India, entrusted with business $ 8 bln in revenues and 1.6 lakhs employees. At LnT, just Chairman Mr Naik and group CEO Mr Vankatraman are pegged at 21 cr and 14 cr, both are nearly/above 70 years. LnT Infotech - 2 CEOs left last month, now LnT looking for two new. 1 COO (Infy CEO contender), 1 CEO for LnT Tech Services. Infotech is claiming to touch $1 bln revenues since 2010, still not there. Please refer BS articles –"LnT, 30,000 crores of international orders at"----------------------------------------------------------------------------------------------------------LnT Junior Engineer turned Executive Chairman Mr Naik Mr Naik should apologize to Indian/Global Young Talent for deliberate insult caused to them to enjoy the booty till age of 75. Mr Naik's Jaw-Dropping and Mind-Blowing musings on succession - "you find a man in the world who will kill himself four times a day, has worked for more than a hundred years--The day you find such a man he is my successor. So what should we do? There is no such person". Mr Naik (aged 72) and all above age of 60 at LnT should retire NOW. Please make way for Information Age leaders like top-man of TATA, Infosys, and Microsoft all are in their 40s. Why this super 70s at LnT? Biggest shareholders (Insutional Investors) at LnT are state owned LIC and UTI. Please save LnT, fix retirement age to 60 from current 75.
    Reply
    1. I
      Indian
      Nov 29, 2014 at 9:58 am
      Headline is Misleading to say the least. It starts with 2G Scam and says India cements transferred money to KTV, which is being prosecuted. Why don't you say, PepsiCO, Coke or Hindustan lever transfered money to KTV. They also would have entered into agreements with KTV for advers. Really Stupid article
      Reply
      1. I
        Indian
        Nov 29, 2014 at 9:58 am
        Headline is Misleading to say the least. It starts with 2G Scam and says India cements transferred money to KTV, which is being prosecuted. Why don't you say, PepsiCO, Coke or Hindustan lever transfered money to KTV. They also would have entered into agreements with KTV for advers. Really Stupid article
        Reply
        1. I
          Indian
          Nov 29, 2014 at 9:58 am
          Headline is Misleading to say the least. It starts with 2G Scam and says India cements transferred money to KTV, which is being prosecuted. Why don't you say, PepsiCO, Coke or Hindustan lever transfered money to KTV. They also would have entered into agreements with KTV for advers. Really Stupid article
          Reply
          1. I
            Indian
            Nov 29, 2014 at 9:58 am
            Headline is Misleading to say the least. It starts with 2G Scam and says India cements transferred money to KTV, which is being prosecuted. Why don't you say, PepsiCO, Coke or Hindustan lever transfered money to KTV. They also would have entered into agreements with KTV for advers. Really Stupid article
            Reply
            1. I
              Indian
              Nov 29, 2014 at 9:58 am
              Headline is Misleading to say the least. It starts with 2G Scam and says India cements transferred money to KTV, which is being prosecuted. Why don't you say, PepsiCO, Coke or Hindustan lever transfered money to KTV. They also would have entered into agreements with KTV for advers. Really Stupid article
              Reply
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