2G PMLA: Raja, Kani involved in Rs 200-crore transaction" ED

Enforcement Directorate (ED) today told a special court trying 2G scam case, that the accused chargesheeted by it in a money laundering case, including ex-Telecom minister A Raja and DMK MP Kanimozhi, were involved in the Rs 200crore money transaction which was not "bonafide" and "genuine".
Advancing arguments on framing of charges, special public prosecutor Anand Grover told the court that the series of transactions relating to transfer of Rs 200 crore from DB group company to DMK-run Kalaignar TV through Kusegaon Fruits and Vegetables Pvt Ltd and Cineyug Films Pvt Ltd were not a "genuine business transaction".
"We (ED) are saying that these were not genuine and bonafide transactions. The other two entities (Kusegaon Fruits and Vegetables Pvt Ltd and Cineyug Films Pvt Ltd) have no role at all except transferring the money. There was no proper documentation regarding these transactions which involved huge amount of money," he told Special CBI Judge O P Saini.

Grover also told the court that the complaint filed by ED and documents annexed along with the charge sheet prima facie show that it was not a genuine business transaction.
He argued that in this case, individuals had used their companies for commission of the crime and the firms as well as the persons were liable to be made accused in the case.
"The companies are also liable as the individuals have used the firms as vehicle," he said, adding, "no businessman can lend huge amount of money without any guarantee".

"This shows that it was not a genuine transaction. It (transfer of money) was not meant for business. It was only for conduiting. They had to route the money through others for the purpose of showing the entire transaction as genuine," the prosecutor argued. The arguments on framing of charges in the case remained inconclusive today.

ED has chargesheeted 19 accused - 10 individuals and nine firms - in the case.
In its charge sheet, ED had claimed its probe into the case emanates from the 2G spectrum allocation scam and the accused had allegedly conspired and committed offences under provisions of the Prevention of Money Laundering Act (PMLA).