-- http://outlookindia.com/article.aspx?270408
There seems to be no end to the twists in the Rs 1.76 lakh crore 2G spectrum scam. After it arrested A. Raja on February 2, the CBI finally submitted that there was a direct money transaction linking Swan Telecom to the Karunanidhi family. Following the submission, it arrested Shahid Usman Balwa, who had set up Swan Telecom, one of the beneficiaries of the scam. While seeking his custody in court, the CBI then submitted that they were looking into cash transfers that linked Balwa to members of the DMK family.
This week, the CBI submitted that Balwa's firm, DB Realty, had set up Dynamix, a company that was into investments. Dynamix in turn "invested" in subsidiary company Kusegaon that would lend money as a non-banking financial corporation. Funds from Kusegaon then travelled to yet another group company, Cineyug. And Cineyug, CBI now has records to show, put in Rs 206 crore in Kalaignar TV, a channel in which Karunanidhi's second wife Dayaluammal (mother of M.K. Stalin and M.K. Azhagiri) and daughter Kanimozhi jointly held 80 per cent of the stake.
This is the first link of payoffs that the CBI claims to have unearthed in the ongoing investigations and which it hopes to use as evidence of kickbacks to former telecom minister A. Raja's party. On February 8 night, the CBI arrested Balwa to interrogate him jointly with Raja. Meanwhile, the CBI is also looking at the other company which benefited from the 2G licence and spectrum allocations.
Unitech had applied for a telecom licence on September 24, 2007. A month later, with over 500 applications in hand, Raja suddenly decided to arbitrarily fix September 25 as the cut-off date. He pointed out that all applications received after the cut-off date would be considered rejected. Unitech got the licence and spectrum at 2001 prices and soon entered into a deal with Norway-based Telenor to make a huge killing. The CBI is also looking at the "unsecured loan" that had been given by Tata Realty, the real estate firm of the Tata group of companies. These monies were then transferred to eight Unitech subsidiaries, which, in turn, applied for the 2G licence and spectrum (see box).
Licence to loot A. Raja being taken to court by CBI officials in New Delhi on February 8. (Photograph by Tribhuvan Tiwari)
Before his arrest, however, Balwa had already spent eight days with the CBI answering their queries in great detail. He had also submitted a 22-page statement to the CBI dated December 22 last year, along with a detailed annexure, to prove to the CBI that he had not committed any illegality in the telecom deal.
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The CBI had also raised questions about the need for Reliance Telecom to subscribe to a preference share in Swan at a premium at a late stage. Balwa wrote to inspector Rajesh Chahal of the CBI pointing out that his now-dead colleague Anand Bhatt had informed him that "as per the arrangement in January 2007" with Reliance, the new telecom company would either give a "contract for infrastructure or for infrastructure-sharing as may be feasible". Finally, Reliance decided to subscribe to preferential shares in the company, which Balwa says, was "a normal practice".
The CBI also questioned Balwa on his relations with Sadiq Batcha, a close associate of Raja from his constituency Perambalur. Balwa told the CBI he had met Batcha on his trips to the Union ministry of environment and forests around 2006, when Raja was the environment minister. Balwa has said he was keen to bid for a proposed 4,000-acre SEZ that would come up in Raja's constituency. It seems that Batcha's company, Green House, was also in the "real estate business" and "agreed to help DB Group in their south India foray". However, it seems that the DB Group and Batcha's company did not do any business subsequently.
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With Raja and his two key associates in custody along with Balwa, sources say they will be concentrating on Unitech's deals. The prime minister has already received a detailed letter in January this year from Telugu Desam Party Lok Sabha MP, Ramesh Rathod, seeking a detailed inquiry into the linkage between the Tatas and Unitech, alleging a major scam (see box). Will this too meet the fate that Subramanian Swamy's complaints to the government did earlier? With the Supreme Court closely monitoring the case and the CBI making a slew of arrests, the UPA is feeling the heat.
Meanwhile, the Opposition is sticking to its demand for a probe by a joint parliamentary committee. Union finance minister Pranab Mukherjee had another round of meetings last week with the opposition leaders in a bid to break the logjam. He proposed that a discussion be held in Parliament before the government set up a JPC. The Congress high command feels a JPC could throw up embarrassing details, something it can do without now, with the Tamil Nadu assembly elections this year. It also fears that a JPC could drag on and end up spoiling the party's chances in the next general elections with revelations about senior UPA leaders. For the moment, with the opposition parties adamant on a JPC, the upcoming budget session seems set for some stormy political weather.
| ALSO IN THIS STORY |
2G SCAM INVESTIGATION The Tata letter praising A. Raja raises more questions |
2G SCAM INVESTIGATION An MP's letter exposes the Tata Realty-Unitech nexus |
2G SCAM DMK But in Chennai, no one seems to doubt who the 2G beneficiary is |
AUTHORS: SAIKAT DATTA
PEOPLE: A. RAJA | M. KARUNANIDHI | M.K. KANIMOZHI
TAGS: SPECTRUM SALE AND SCAMS | CBI | UNITECH | DMK | MEDIA | RELIANCE COMMUNICATIONS |ENFORCEMENT DIRECTORATE
SECTION: NATIONAL
PLACES: TAMIL NADU
FEB 16, 2011 04:41 PM 14 | Even CBI disclosed in front of PAC that 2G scam is about 29000 crore rupees. The amount is much less than CAG estimate but much more than Kapil Sibal's estimate of 'Zero Loss' ! Opposition never said that CBI is credible rather UPA always give certificates of CBI's credibility. Now with CBI's disclosure & lot ofthe workdone as elaborated in the article will Kapil Sibal & Montek Singh Alhuwalia take moral responsibility of misleading people of India on 2G scam & quit their post? Well morality is always alien word to UPA coalition but will they at least has credibility to question CAG's estimate as erroneous? Now common people believes that CAG's assesment is on conservative side & the loot would be much more than calculated. Also people feel very sorry that they have bear such a corrupt & shameless government for another three & half year. |
FEB 15, 2011 03:08 PM 13 | Did Raja took money? That CBI have to prove and if found guilty he should be punished. Not only he any one involve in it. |
FEB 15, 2011 02:59 AM 12 | SC judges can also be bribed and they will aquit all the accused after few years when people will forget about this scam. |
FEB 14, 2011 04:38 PM 11 | Rajesh in this thread, Ravi in the other one. Shamelessly defending the indefensible |
FEB 14, 2011 10:33 AM 10 | Nerus, Absolutely correct. Unless the CBI can establish a money trail and prove that there was a payment for services rendered, they have no case. |
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