Our accounts open to scrutiny, says Kalaignar TV

With the Central Bureau of Investigation (CBI) informing a Special CBI Court in New Delhi that it is investigating the transfer of over Rs.200 crore from Cineyug of Mumbai to Kalaignar TV as part of its probe into the 2G spectrum scam, the television channel said on Wednesday that its account books were open to scrutiny by the CBI and the Income Tax Department.

“We have clarified that there is no connection between the transaction and the 2G spectrum issue and that the amount had been returned with interest to Cineyug. Despite this, the CBI has referred to the transaction in court.

“If either the CBI or the Income Tax department has any suspicion in this regard, Kalaignar TV has no objection to its accounts and documents being verified by the agencies,” the channel's managing director Sharad Kumar said in a statement.

Kalaignar TV maintains that Cineyug had paid the amount for purchase of shares in the channel, but the deal fell through due to differences over valuation. Thereafter, Kalaignar TV treated the advance as a loan and returned the money with Rs.31 crore as interest.

The transaction was reported to Income Tax authorities and tax paid, Mr. Sharad Kumar had said in a recent statement.

The CBI, while seeking extension of judicial custody of the former Telecom Minister, A. Raja, and co-accused Swan Telecom Director Shahid Balwa before the Special Judge in the Patiala House Courts, Delhi, stated that it had “come to light that there is a transaction of about Rs.200 crore from Cineyug Films Pvt. Ltd to Kalaignar TV Pvt. Ltd., which belongs to Sharad Kumar and others who are closely associated with A. Raja.”

The CBI stated that the funds were arranged by Cineyug Films from DB Group companies, in which the family members of Shahid Balwa are the Directors/shareholders.

The CBI's remand application sought more time to examine in further detail the transaction of these funds and “emergence of some new facts of more alleged quid pro quo given to Kalaignar TV…”

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