Asia-Pacific

Indian probe agency raids TV office over telecom scam

(Xinhua)
Updated: 2011-02-18 17:57

NEW DELHI - India's premier probe agency Friday raided offices of Kalaignar TV, a Chennai-based channel linked to the southern state of Tamil Nadu's ruling DMK party, over the multi-billion-dollar telecom scam, sources said.

"Sleuths of the Central Bureau of Investigation (CBI) raided the offices and residences of the channel's top management in the southern state's capital Chennai in connection with money trail in the $40 billion 2G spectrum scam.

"The CBI suspects that some amount of payoffs in the scam may have been diverted to the channel which has strongly refuted any link with the case. The channel is run by family of the state's Chief Minister, M. Karunanidhi," they said.

The probe agency had alleged last week that a 2 billion rupee ( $40 million) cheque was sent from Mumbai to Chennai in 2009 which ended up in the channel's office.

The money was allegedly paid to former Indian Telecom Minister A. Raja by Shahid Balwa, a promoter of D.B. Realty and Swan Telecom said to be one of the two major beneficiaries of Raja's spectrum scam.

The former Telecom Minister, a member of DMK party, is currently in jail after spending a fortnight in CBI custody following his arrest on February 2 over the 2G spectrum scam. Balwa is in CBI custody.