Shell Corporations Used to Funnel Cash in 2G Scam: ED

The Enforcement Directorate (ED) on Friday charged DMK chief M Karunanidhi’s wife Dayalu Ammal, daughter Kanimozhi and DMK leader A Raja in connection with a money laundering case related to the 2G spectrum scam.  According to sources, Rs 200  crore in kickbacks was  channeled to Kalaignar TV through a complex cycle of money transfers from Kolkata-based mailbox companies. The money was part of funds collected by the Kalaignar TV to repay the alleged loan of Rs  200 crore to Cineyug films after the 2G controversy gathered media attention.

Sources said that to repay the alleged loan, Kolkata-based fictitious companies transferred Rs 60 crore first in the account of Sapphire Media & Infrastructure Pvt Ltd. An additional Rs 23 crore was added and total Rs 83 crore was later transferred to Anjugam Films Private Ltd, a wholly-owned subsidiary of Kalaignar TV. Subsequently, the amount was transferred to Kalaignar TV to repay the alleged loan.

“Anjugam films Pvt Ltd was floated just a few months before the money transfer. The Karunanidhi family controlled the company and later new directors were inducted after the money moved to its destination.”

Sources further said that besides Dynamix Reality, three other construction companies — Eversmile Construction, Conwood Construction and Nihar Constructions were involved in laundering the money. Kusegaon Fruits and Vegetables Ltd, floated by K M Goenka and Pramod Goenka, was sold to Asif Balwa and Rajeev Agarwal just months before the laundering.

“There is no activity in Kusegaon Fruits & Vegetables Ltd account after money landed in Cineyug Films Ltd. It is clear the firm was raised to facilitate money transfer and did no other business thereafter. It was also noticed that when Rs 223.55 crore returned to Dynamix Realty, some amount was moved to DB realty and Nihar Constructions. The money was later attached by ED in August 2011,” sources said.

“The reverse flow of money from Kalaignar TV further establishes the projection of proceeds of crime as untainted and is nothing but the process of laundering of money,” an ED official said.

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