Arguments conclude in money laundering case

A special court trying the 2G spectrum allocation case on Monday reserved its order on framing of charges against the former Telecom Minister, A. Raja, and DMK Rajya Sabha member Kanimozhi in a money laundering case.

The case is an off-shoot of the spectrum case.

Additional sessions judge O.P. Saini reserved the order on conclusion of arguments by counsel for the Enforcement Directorate (ED) and the accused and fixed October 20 as the date to pass the same.

Besides Mr. Raja, Ms. Kanimozhi and DMK leader M. Karunanidhi’s wife Dayalu Ammal, seven others are accused in the case. Nine companies have also been named as accused. The ED alleged that the transfer of Rs. 200 crore from the DB Realty Group to the DMK-run Kalaignar TV through Kusegaon Fruits and Vegetables Pvt. Ltd. and Cineyug Films Pvt. Ltd. was not a genuine business transaction.

It charged that the money paid to Kalaignar TV was a bribe for grant of a telecom licence to Swan Telecom, a company of DB Realty Group.

According to the ED’s complaint, Dayalu Ammal was holding 60 per cent stake in Kalaignar TV while Ms. Kanimozhi and Sharad Kumar, managing director of the channel, were each holding 20 per cent stake.

Claiming that its probe into the money laundering allegations originated during investigations into the 2G case, the ED alleged that the accused entered into a conspiracy and committed offences under various provisions of the Prevention of Money Laundering Act.

All the accused — Ms. Dayalu Ammal, Ms. Kanimozhi, Mr. Raja, Swan Telecom promoters Shahid Usman Balwa and Vinod Goenka; directors of Kusegaon Fruits and Vegetables Pvt. Ltd. Asif Balwa and Rajiv Agarwal; Mr. Sharad Kumar, film producer Karim Morani and P. Amirtham, director of Kalaignar TV — are on bail.

Counsel for the accused countered the ED’s charge arguing that there was no evidence against them.