CBI conducts raids at offices of DMK-run Kalaignar TV

The CBI today carried out searches in the offices and residences of top management of DMK first family run Kalaignar TV in connection with the 2G spectrum scam.

The raids came days after the channel claimed it had no links with the case.

Official sources said searches began in the wee hours to probe certain financial transactions that could be connected to the spectrum scam, that has already seen the arrest of former Telecom Minister A Raja.

The raids came in the wake of allegations that that there was a connection between accused Shahid Usman Balwa-promoted Swan Telecom and the channel.

Balwa was allegedly favoured by Raja in grant of UAS licence and scarce radio waves.

Officials said the crux of the probe relates to the over Rs 200 crore loan arranged by Balwa's DB Realty group for Kalaignar TV.

DMK chief M Karunanidhi's wife MK Dayalu owns 60 per cent stake in Kalaignar while party MP Kanimozhi has 20 per cent.

The CBI had told a court recently, "It has also come to light that there was a transaction of Rs 214 crore from M/s Cineyug Films private limited to Kalaignar TV in 2009.

"The funds were arranged by M/s Cineyug Films from DB Group companies wherein the family members of Balwa are the directors or shareholders", CBI had said in its application filed before the court.

Kalaignar TV's denial earlier had followed CBI's allegations that there was a connection between scam accused Balwa-promoted Swan Telecom and the channel.

Managing Director of Kalaignar TV, Sharad Kumar had denied receiving pay-offs from DB realty, whose chief Balwa is in CBI net along with Raja.

Kumar had also said the sum received from Cineyug Films was an "advance for transaction of shares", and was returned with interest when the two parties differed over the price evaluation of shares.

He had said that the money from Cineyug was received as loan which had been repaid with interest and the Income-Tax department was aware of the transaction.