This Article is From Feb 11, 2011

AIADMK chief Jayalalithaa's statement

AIADMK chief Jayalalithaa's statement
Chennai: In Tamil Nadu, AIADMK chief Jayalalithaa claims to have established how a kickback of Rs 200 crore was paid to the DMK in return for favours delivered by DMK leader A Raja when he was Telecom Minister.  

Here's the full text of her statement:

Tamil Nadu's Chief Minister M Karunanidhi deserves to be complimented for one thing at least. When it comes to scientific corruption, he has shown remarkable consistency right from his very first term as chief minister in the late 1960s. Let me cite a small example. I quote from pages 52 and 53 of The Sarkaria Commission Report (Vol 1) on Charge no 7 relating to the purchase of a house by Mrs. Dharma, now known as Rajathi, the third wife of Karunanidhi:

"On Jan 20, 1969, Mrs. Dharma purchased the house No 9, 1st Cross Street, Raja Annamalaipuram, Chennai from one Mrs. E L Viswasam for Rs 57,000. On August 21, 1970, Dharma sold the same house to T.K. Kapali (her security guard) as shown by Document no 1523/70.

In this document, the registrar notes that the buyer T.K. Kapali paid the seller Rajathi @ Dharma Rs 14,000 in his presence. On the same day, Dharma prepared an unregistered lease document in the name of T.K. Kapali. According to this, the same house was leased to Dharma on a monthly rent of Rs 300 (in other words, she stays on rent in a house she has sold).

 On Jan 30,1972, Kapali sells this same house to one  Mrs. Sivabhagyam for Rs 45,000 (he sells it at a loss of Rs 12,000). Sivabhagyam happens to be Dharma's mother! There is a registered document for this sale. On March 20, 1972, Sivabhagyam writes out a settlement deed making over the same house to her daughter Dharma and grand daughter Kanimozhi. This deed indicated that the property would go to them after her (Sivabhagyam's) death.

"In her IT returns filed on March 13, 1973, Dharma claimed that she had borrowed Rs. 40,000 from Kapali to purchase the house. She had also put in Rs. 23,000 which was from her own savings (Rs. 40,000+ Rs 23,000 = Rs. 63,000. But the registered purchase value was only Rs. 57,000).

This borrowing is supported by an unregistered document dated January 11, 1970. According to this document, the borrowed amount was to be returned in 3 instalments of Rs. 15,000, Rs 15,000 and Rs 10,000. If this did not happen, the house was to be sold to the said Kapali.

A Promissory Note also was prepared to this effect and signed by Dharma on August 21, 1970. Kapali later wrote in the Promissory Note that he had received back Rs. 40,000 from Dharma. This pro-note was later seized by the IT authorities on March 23, 1976.

"In the IT returns filed by Kapali on April 11, 1973, Kapali indicated that he borrowed Rs. 20,000 as loan from Sivabhagyam in order to pay  Rs. 40,000 to Dharma...(in other words, the security guard borrows money from Rajathi's mother to lend money to Rajathi!!)"

One can only sympathise with Justice Sarkaria. He had to sift such confusing data in 28 different charges! Little wonder that he certified Karunanidhi as the "Master of Scientific Corruption!!"

It is a similar exhibition of Scientific Corruption that one sees as the  2G Spectrum Scam investigation unfolds. The then Union Telecom Minister Raja sells valuable 2G Spectrum to Swan Telecom, a new company launched by Dynamix Balwa, a  Mumbai-based real estate company, at a throwaway price of  Rs. 1,537 Crores. Immediately after, Dynamix Balwa sells 45% of its holdings to the UAE-based Etisalat for Rs 4,200 Crores.

For facilitating this highly profitable sale, Dynamix Balwa pays a kickback to Raja's Lord and Master, Karunanidhi. But the payment is not made directly. So as not to attract the attention of the Income Tax authorities, Balwa transfers funds ranging from Rs 25 lakhs  to Rs 100 Crores, and totalling Rs 209.25 Crores, from 11 different companies controlled by him to Kusegaon Fruits & Vegetables, a company owned by Asif Balwa and Rajiv Agarwal.

From this, Kusegaon transfers Rs 206.25 Crores to Cineyug Films, owned by the Balwas and Morani. Cineyug's balance sheet for 2009-10 shows that an unsecured loan of Rs 206 crores was given to the Chennai-based Kalaignar TV, in which Karunanidhi's second wife Dhayalu and his daughter by his third wife, Kanimozhi, jointly hold 80% of the stakes!

The parallels between the transactions quoted from the Sarkaria Report and the Kalaignar TV money dealings are striking. The same convoluted accounting patterns.... The same devious, difficult-to-track money-trails.... Obviously devised by the same brain!

Karunanidhi and his family members all deserve to be included in the  2G Spectrum Scam case as co-accused. Only then can the whole truth  be unearthed. Only then will the interests of justice be served.

J Jayalalithaa

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