Chennai:
Stung by the CBI's supplementary chargesheet in the 2G scam that names party chief M Karunanidhi's daughter Kanimozhi as a co-conspirator, the DMK has reacted sharply. The party has convened a high-level executive committee meeting on Wednesday, to decide on its "future course of action".
In a statement, the DMK said that Ms Kanimozhi's questioning by the CBI, and that of Mr Karunanidhi's wife, Dayalu Ammal, had been made a "publicity exercise of gargantuan proportions". The statement said that the supplementary chargesheet filed by the CBI was even more publicised.
The party also contended that inspite of Kalaignar TV's proof given for the Rs 200-crore loan and its repayment, Kanimozhi and the channel's Managing Editor Sharad Kumar were charged by the CBI.
"Even after it had been proved in a transparent manner that the Rs 200 crore loan given by a firm (DB Reality to Kalaingar TV) was returned with interest and that there was nothing hanky panky and no conspiracy, Dayalu and Kanimozhi were questioned (by CBI)" the statement said.
Kanimozhi, who is also accused of accepting a bribe, has been asked to appear in the Delhi court trying the 2G case on May 6.
In 2008, A Raja, a DMK leader, was the Telecom Minister when he sold spectrum and mobile network licences for a jaw-dropping low price to companies that were largely ineligible for either, according to government guidelines.
One of those companies - Swan Telecom - allegedly sent Mr Raja a Rs. 214-crore kickback that was routed through a maze of companies but rested finally with a TV channel in Chennai that is owned mainly by Kanimozhi and Dayalu Ammal. Together, they have 80% stake in the company. Sharad Kumar, the Managing Director of Kalaignar TV, owns the balance and has also been accused of conspiring with Mr Raja. Like Kanimozhi, Mr Kumar was interrogated earlier this year by the CBI. Both of them said that the Rs. 214-crore payment was for a sale in equity that unraveled; they claim they returned the entire amount with 30 crores in interest.
The CBI in its supplemetary chargesheet, filed on Monday, states, "The refund of the entire amount has occurred after the registration of the CBI case. Infact the date when the refund of the amount started, December 23, 2010, coincides with the date when accused A Raja was asked to join investigation at the CBI office on December 24 and December 25. A major chunk of funds was refunded after December 25, 2010. Investigation has established that pursuant to the criminal conspiracy, accused Raja, Sharad Kumar, Kanimozhi, stakeholders of Kalaignar TV, accepted and received an illegal gratification of Rs. 200 crore in Kalaignar TV from accused Shahid Balwa and Vinod Goenka from the accounts of DB Group Companies in 2008-09, as a reward in lieu of the undue favours shown by Raja."
Mr Raja is in jail. So are Shahid Balwa and Vinod Goenka, both partners in DB Realty and Swan Telecom, which was later sold to Etisalat and is now called Etisalat DB.
Also chargesheeted for abetment to bribery, are top executives of the companies that Mr Balwa allegedly used to route his kickback to Mr Raja. They include Karim Morani of Cineyug Films; Rajiv Aggarwal of Kusegaon Realty and Mr Balwa's brother, Asif, whose involved with the same company.
The CBI says on different fronts, it's clear that Kanimozhi was an active participant in the running of Kalaignar TV and that she was one of Mr Raja's partners in crime. She lobbied with the Ministry of Information and Broadcasting permits for Kalaignar. In Delhi, she campaigned privately for Mr Raja to return for a second term as Telecom Minister in 2008, after the UPA alliance won the general elections.
Her phone conversations with corporate lobbyist Niira Radia, who is now a witness in the 2G trial, have done much damage for the young DMK leader. Ms Radia's phones were tapped as part of an income tax investigation and it is in her different conversations that the first picture of the 2G scam emerged.
As recently as Friday, the CBI was insistent that Dayalu Ammal would be listed in the new chargesheet. However, weekend reports suggested that her sons - MK Alagiri and MK Stalin who are both senior DMK leaders - were furious about attempts to link her to the scam. Within the CBI, too, there was allegedly a divide over whether to involve her. Some investigators felt that given the fact that she is in her 80s, and does not understand English, it would be hard to prove that Dayalu Ammal knew of her channel's financial transactions.
Both the BJP and Jayalalithaa have alleged that the government is showing undue favour to Mr Karunanidhi's wife.
The DMK has fought the elections in an alliance with the Congress. And while sources say the partnership is under significant strain because of the 2G investigation, it will not collapse. The Congress, however, will have the firm upper hand as it negotiates for share of power if the alliance wins. Sources in the DMK say the party knows that with its senior-most members linked so closely to the 2G scam, it needs any cover the Congress may be able to offer. Convincing the CBI to ignore Dayalu Ammal could be an example of the possible benefits of staying in business with the Congress.
The first chargesheet in the 2G scam was presented a few weeks ago by the CBI - it led to some of India's senior-most executives at different telecom companies like Unitech Wireless and Reliance Telecom (of the Anil Dhirubhai Ambani Group) being arrested. Since last week, they have been in jail; their applications for bail are scheduled to be heard by the Delhi High court on today.