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This Article is From Mar 15, 2011

2G probe: CBI to submit progress report to the Supreme Court today

2G probe: CBI to submit progress report to the Supreme Court today
New Delhi: The Central Bureau of Investigation (CBI) is to submit in the Supreme Court today the status report on the progress of the investigations in the 2G scam.

The Supreme Court will resume hearing of the case relating to cancellation of Telecom licences granted by former Telecom Minister A Raja.

Several people have been questioned by the investigating agency, including DMK chief and Tamil Nadu Chief Minister M Karunanidhi, his daughter Kanimozhi and wife Dayalu Ammal.

Kanimozhi and Dayalu Ammal together own 80 per cent stake in Kalaignar TV, whose offices are based in the party's headquarters. A cheque for Rs 214 crore that was deposited with Kalaignar has led to the theory that the channel may have served as a front for those involved with the scam, including the DMK's A Raja, the former Telecom Minister, who is now in jail.

However, Kanimozhi and the management of the channel have both said that the money was a loan that was repaid with an interest of Rs 30 crore.

In 2008, when he was Telecom Minister, Mr Raja gave away valuable spectrum at throwaway prices to companies including Swan Telecom, promoted by Shahid Balwa. He allegedly repaid Mr Raja Rs 214 crore. Investigators believe the bribe was paid via a Mumbai company named Cineyug Films to Kalaignar TV.

Since 2008, when Mr Raja allocated 2G licenses, there has been talk of his blatant manipulation of government policies. A CBI inquiry was launched, and showed no results. The Opposition and the media kept underlining that Mr Raja was being protected by the government at the Centre, because of the DMK's 18 MPs which made it an indispensable ally.

Then in November 2010, a report by the government's auditor estimated that Mr Raja has cost the country up to 1.76 lakh crore with his swindle. Combined with the Supreme Court demand that the CBI abandon its lethargic inquiry into the scam  and move with more energy and prowess, the spectrum scam leapt to the front of the political landscape.

Mr Raja, a popular Dalit leader known for his close relationship with Kanimozhi, resigned from the government.

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