How Swan money made its way to Kalaignar TV

Swan Telecom promoter Shahid Balwa ratified a multi-channel corporate funding of Rs 200 crore in Kalaignar TV to secure 2G spectrum licence for the Delhi circle. The buck stops here

Swan Telecom promoter Shahid Balwa ratified a multi-channel corporate funding of Rs 200 crore in Kalaignar TV to secure 2G spectrum licence for the Delhi circle.

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The CBI has referred to this transaction as "corporate bribe" paid in garb of investment.

The investigating agency claimed these transactions were branched out of their parent companies, after Swan Telecom acquired Unified Access Services (UAS) licence for 13 circles.

The CBI counsel had earlier told the court Balwa routed the money in a phased-out manner to keep his tax record clean.

Two transactions of over Rs 200 crore from two companies owned by Balwa family members were made between December 2008 and August 2009, and finally Rs 200 crore reached Kalaignar in August 2009-end.

"The moment money was realised by Kalaignar TV, Delhi circle licence was awarded to Swan..." the agency had told special judge OP Saini.

Balwa's counsel Vijay Aggarwal had dismissed CBI claims stating the agency is deliberately converting a corporate investment into bribe. Aggarwal said they had received the money from Kalaignar with interest.

According to CBI, Rs 209, 25,100,00 crore was routed from Dynamic Realty, a firm which is owned by Balwa family, to Kusegaon Fruits and Vegetables Private Limited, which has 50% equity of Asif Yusuf, a family member of Balwa family, and 50% equity of Rajiv Aggarwal, an associate of Balwa.

Simultaneously from Kusegaon Fruits and Vegetable Pvt Ltd R206 crore was offloaded to Cineyug Films, which has 51% equity of Karim Ali, a relative of Balwa, and the remainder 49% is controlled by Kusegaon.

This transfer of funds was shown as advance towards share application from December 24, 2008 till March 31, 2009.

Cineyug offloaded Rs 200 crore to Kalaignar TV initially towards share application, which was converted to inter-corporate deposit during December 12, 2008 and August 2009.