This Article is From Mar 11, 2011

2G spectrum scam: CBI questions Kanimozhi

Chennai: Kanimozhi, whose father is Tamil Nadu Chief Minister M Karunanidhi, was questioned by the CBI in Chennai in connection with the 2G spectrum scam. Her stepmother, Dayalu Ammal, was also interrogated.

Together, Kanimozhi, who is a Rajya Sabha MP, and Dayalu Ammal own 80% stake in a Chennai TV channel named Kalaignar that was allegedly the recipient of a Rs 214-crore kickback from the massive spectrum scam. (Read: Who is Kanimozhi?)

After the interrogation, Kanimozhi said, "The CBI asked me to substantiate the statement by Kalaignar TV's Managing Director Sharad Kumar...We are cooperating unlike other leaders. We are above board."

"The Supreme Court is monitoring the case and we have not put any pressure,"she added.

A Raja, now in jail, was Telecom Minister when he allegedly bent government rules to give valuable frequency at throwaway prices to companies who were ineligible.  Mr Raja is known for his close relationship with Kanimozhi.

The CBI has to present its chargesheet in the spectrum scam by March 31 to the Supreme Court, which has been monitoring the investigation and has frequently criticized the CBI for its drawn-out and inconsequential inquiry.  With Mr Raja's arrest, the CBI hoped to prove it is taking its assignment seriously.  The chargesheet, sources say, will refer to Kanimozhi, though she may not be accused of corruption herself.  

That will be a PR nightmare for the DMK - with elections just weeks away, Opposition parties, particularly the DMK's main rival Jayalalithaa, have been using the spectrum scam to accuse the DMK of being infected with corruption.  

Mr Karunanidhi's daughter arrived at the DMK headquarters in Chennai this morning, where the offices of Kalaignar TV are also based, for interrogation.

The DMK and the Congress salvaged their political marriage in Tamil Nadu earlier this week after the DMK announced it would pull out of the union government.  That was prompted by negotiations over how many seats the Congress would get from the DMK for the Tamil Nadu elections, scheduled for April 13.  The Congress wanted 63.  The DMK finally gave in.  

All along, the DMK denied that the real source of the friction was the 2G scam which had pushed Mr Raja, a popular Dalit leader, into jail.  In the weeks leading upto his arrest, the homes and offices of several people known to be part of the inner circle of the DMK's First Family were raided.

Swan Telecom, whose promoter Shahid Balwa has been arrested for bribery, cheating and conspiracy, is allegedly one of the major beneficiaries of the telecom scam.  He allegedly repaid Mr Raja through a Rs. 214-crore cheque which was routed through other companies owned by Mr Balwa. The cheque was eventually deposited with Kalaignar TV.  However, Kanimozhi and the management of the channel have both said that the Rs. 214- crore was a loan that was repaid with an interest of Rs 30 crore.
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