Free Press Journal

2G PMLA: Rs 200 cr transaction b/w firms not genuine, says ED


New Delhi: Enforcement Directorate (ED) today claimed there was “no genuine business” in the transfer of Rs 200 crore to DMK-run Kalaignar TV through Kusegaon Fruits and Vegetables Pvt Ltd and Cineyug Films Pvt Ltd allegedly in lieu of grant of 2G spectrum to Swan Telecom Pvt Ltd by former Telecom Minister A Raja.

Continuing final arguments in a 2G scam-related money laundering case lodged by the ED, Special Public Prosecutor Anand Grover told Special CBI Judge O P Saini that the purpose of forming Kusegaon and Cineyug was only to pass money as they had no genuine business and the entire thing was “fabricated”.

The agency has claimed that Rs 200 crore transaction between DB Group firms and DMK-run Kalaignar TV was “illegal gratification” and the money travelled through various firms including Kusegaon and Cineyug.

“Kusegaon and Cineyug were formed only to pass money and they had no genuine business. … Inconsistency in transactions also does not support their genuineness… The whole thing was fabricated,” Grover said.

The prosecutor also questioned as to why Kusegaon Fruits and Vegetables Pvt Ltd, which was in agri business, was interested in a television company. “They have not explained it,” he said.

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. The agency had earlier told the court that the money transactions between Dynamix Realty to Kusegaon Fruits and Vegetables Pvt Ltd was “not genuine” and a “sham transaction”.

ED’s arguments remained inconclusive and would continue tomorrow. ED had earlier alleged that Rs 200 crore was transferred as “illegal gratification” 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.

The agency 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 the “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. All the accused, who are out on bail, have denied the allegations against them.