Enforcement Directorate (ED) today told a special court that the Rs 200 crore transaction between DMK-run Kalaignar TV and DB Group firms was “illegal gratification” in lieu of grant of 2G spectrum to Swan Telecom Pvt Ltd by former Telecom Minister A Raja.
Continuing the final arguments in a 2G scam-related money laundering case lodged by the ED, the agency said that money transactions between Dynamix Realty to Kusegaon fruits and Vegetables Pvt Ltd was “not genuine” and was a “sham transaction”.
“This stands proved that money travelled from Dynamix Realty to Kusegaon Fruits and Vegetables Pvt Ltd. It was not a genuine transaction,” Special Public Prosecutor Anand Grover argued before Special CBI Judge O P Saini.
“Kusegaon Fruits and Vegetables Pvt Ltd was not doing any business and it was engaged in agriculture purpose while Dynamix Realty was involved in real estate business.
“It was a sham transaction and no business transaction was there at all,” he added.
The prosecutor said Kusegaon Fruits and Vegetables Pvt Ltd and Dynamix Realty had “totally unrelated business activities” and there was no reason for them to conduct business together.
He also claimed that no security was created for giving so much of money to another company and it also showed that it was not a genuine transaction.
“As it was not a genuine transaction, therefore, we come to the conclusion that it was an illegal gratification and the money was tainted,” he contended.
ED’s arguments remained inconclusive and would continue tomorrow.
ED had earlier alleged that Rs 200 crore “illegal gratification” was transferred to DMK-run Kalaignar TV by DB group firm through a “circuitous route” in return for grant of spectrum to Swan Telecom Pvt Ltd by Raja.
It had alleged that a conspiracy was hatched by Raja, Kanimozhi, DMK supremo M Karunanidhi’s wife Dayalu Ammal and others and Rs 200 crore was “proceeds of crime”.
Raja, Kanimozhi, Ammal and 16 others, including nine firms, are facing trial in the case in which ED had on April 25 last year filed a charge sheet under the provisions of the Prevention of Money Laundering Act (PMLA).
The court had on October 31, 2014, framed charges against the accused claiming that Raja had allegedly connived with Kanimozhi, Ammal and others in the “parking” of illegal gratification in Kalaignar TV.
The other accused are Swan Telecom Pvt Ltd (STPL) promoters Shahid Usman Balwa and Vinod Goenka, Kalaignar TV MD Sharad Kumar, Directors of Kusegaon Fruits and Vegetables Pvt Ltd, Asif Balwa and Rajiv Agarwal, Bollywood producer Karim Morani and P Amirtham. All of them are out on bail.
In the CBI case, besides Raja and Kanimozhi, ex-Telecom Secretary Siddharth Behura, Raja’s erstwhile private secretary R K Chandolia, Unitech Ltd MD Sanjay Chandra, STPL promoters Shahid Usman Balwa and Vinod Goenka and three top executives of Reliance ADAG — Gautam Doshi, Surendra Pipara and Hari Nair — are facing trial.
Directors of Kusegaon Fruits and Vegetables Pvt Ltd Asif Balwa and Rajiv Agarwal, Kalaignar TV Director Sharad Kumar and Bollywood producer Karim Morani are also accused in the case, besides three telecom companies — Reliance Telecom Ltd, STPL and Unitech Wireless (Tamil Nadu) Ltd.
All the accused, who are out on bail, have denied the allegations against them.