2G money laundering case: Court begins examination of defence witnesses

New Delhi : A court here on Wednesday began recording the statements of defence witnesses in a money laundering case related to 2G spectrum allocation case against former telecom minister A. Raja and others.

Central Bureau of Investigation Special Judge O.P. Saini recorded the statement of two Kalaignar TV officials — vice president (operations) Humayun Ali Ahamed and manager (finance) K. Uma Shankar.

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Shankar told court that in October 2008, Kalaignar TV received Rs.200 crore as a loan from Cineyug Films.

He said the loan was used to repay loans taken by Kalaignar TV from banks, while Rs.81.77 crore was used for purchasing movies.

As to how funds were generated for repaying the amount, Shankar said: “For this, we entered into contract of bulk advertisements with India Cements and United Spirits Limited amounting to Rs.60 crore and Rs.24.5 crore, totalling Rs.84.5 crore.”

He said Rs.69.62 crore was received from a subsidiary of Kalaignar TV while Rs.30.41 crore was received as the chaannel’s daily collection.

He said Rs.46.83 crore was received as open cash credit account with Indian Bank.

The Enforcement Directorate has alleged that around Rs.200 crore were paid by the promoters of Swan Telecom, using their group firm Dynamix Realty, to Kalaignar TV via Kusegaon and Cineyug in the garb of a legitimate financial transaction.

The charge-sheet said the payment was illegal gratification for, and on behalf of, Raja and his associates in lieu of illegal favours to Swan Telecom for the grant of a telecom licence.

The court on October 31 framed charges of money laundering against Raja, his party colleague and DMK parliamentarian Kanimozhi and others.

Raja, Kanimozhi, DMK chief M. Karunanidhi’s wife Dayalu Ammal and Kalaignar TV’s Sharad Kumar and P. Amirthan with others are facing trial in the case.