2G scam: ED chargesheet details

The 2G scam has shocked the conscience of the nation. It had all the big names in it and was a scam of huge proportion. However one must note that the case which was investigated by the Enforcement Directorate involving the transfer of Rs 200 to the Kalaignar TV promoted by Swan Telecom is the one to watch out for.

The trial has commenced in this case and the Enforcement Directorate is confident that its detailed 143 page chargesheet has all that is needed to merit a conviction.

The ED case

The allegation in the case was that Rs 200 crore was transferred to Kalaignar TV by Swan Telecon. It is stated in the chargesheet that this transfer was made as a quid pro quo and the intent was to was actually for the Swan Telecon to bag the 2G spectrum. Everything became suspicious when the firm bagged the 2G spectrum at such a menial price.

Dayalu Ammal

There has been a lot of argument regarding the age of Dayalu Ammal and several times it has also been stated that leiniency ought to be shown. However according to the ED age cannot be a factor. During her questioning, she was direct to ask the ED, " what is 2G."

However the ED has clearly stated in the chargesheet that Dayalu Ammal was a 60 per cent shareholder in the channel. She was aware of the decisions and was in fact part of all important decisions.

The money trail

The cases that have been booked under the Prevention of Money Laundering Act or the PMLA detail the manner in which this Rs 200 crore moved. It states that Rs 200 crore was paid by Swan Telecom through Dynamix Realty which is their group entity to Kalaignar TV. This was done through Kusegaon Fruits and Cineyug Films and were shown as legitimate transactions under the garb of money being paid as loan and share application money."

It is clearly stated that this money was part of an illegal gratification that was shown to Raja. It is further alleged that Raja had shown favour to Swan Telecom in the 2G spectrum deal to get a UAC licence and hence this money was transferred.

Clear case

The ED further states in its chargesheet that this was a clear case of money laundering. While investigating the reverse flow of the funds it was established that the it is nothing but a process that involved large scale money laundering.

" It will not be out of place to mention here that the entire amount, to the tune of Rs 223.55 crore, was in fact proceeds of crime and has already been attached by way of provisional attachment order dated August 30, 2011 issued under section 5(1) of PMLA, which has been subsequently confirmed by the adjudicating authority on January 10,2012 under Section 8(3) of the PMLA."

Key persons

The Enforcement Directorate in the chargesheet cites the statement made by Kalaignar TV director P Amrithan under Section 50 of PMLA. He states that Ammal was aware of the decisions and had taken part in the important decisions. However Amrithan has now denied this statement before the court.

Amrithan who was also questioned by the CBI had stated that the pledging of the equity holding of Kalaignar TV to Cineyug owned by Karim Morani was known to Dayalu Ammal. The ED clubbed this with the statement of Sharad Kumar the Managing Director of the Kalaignar TV who also took the same stance as Amrithan.

Kanimozhi

Further it has been stated that the prosecution witness Asheervatham Achary had claimed that it was Kanimozhi and Raja who had hatched this conspiracy in full. It was stated that Kanimozhi held a 20 per cent stake in the company as opposed to the 60 per cent held by Ammal.

Further the chargesheet has also gone on to name the following people in the case. Vinod Goenka, Asif Balwa, Shahid Usman Balwa, Rajiv B Agarwal and Karim Morani, all part of D B Realty.

The companies that find a mention in the chargesheet are Kusegaon Realty, Swan Telecom, Cineyug Films, Kalaignar TV, Eversmile Construction, D B Realty, Nihar Constructions, Conwood Constructions and Dynamix Realty.

The trial

The trial has commenced and on expected lines most of the accused have denied any role and said that the ED has not been able to connect them.

The trial is going on against Raja, Kanimozhi, Dayalu Ammal and others. The court had observed that charges of money laundering had prima facie been made out against them. Charges were framed under Section 120 B amounting to criminal conspiracy under the IPC. The provisions of the PMLA were also made out.