Tainted 2G scam funds traced to IPL

The Central Bureau of Investigation (CBI) investigations into the 2G scam is unravelling the flow of tainted funds into Bollywood productions and Indian Premier League (IPL). Arrest of Shahid Balwa, Managing Director of D B Realty has thrown light on the role of a key figure in the flow of 2 G tainted funds from D B Realty to Kalaignar TV and funding routes linking to film financing and investments made by Balwa in IPL franchisees.

CBI sources revealed that the arrests of Shahid's brother Asif and Kusegaon Fruit and Vegetable Private Limited promoter Rajiv Agarwal has brought to light the fact that it reportedly loaned Cineyug a sum of Rs 212 crore through a financial route which Enforcement Directorate is currently probing into.

DB Realty was owned by Shahid Balwa who has a stake in Swan Telecom, which is one of the companies named in the 2G scam. The ED has highlighted in its status report filed in the Supreme Cout early this week that money was loaned by DB Realty group to DMK's Kalaignar TV through Kusegaon Fruit and Vegetable Pvt Ltd via Cineyug Media and Entertainment Pvt Ltd.

It has been established that loans were made to Kalaignar TV, where. Karunanidhi's wife MK Dayalu owns 60 per cent and daughter Kanimozhi owns another 20 percent in the DMK TV channel. Rs 214.84 crore which is reflected in Kalaignar TV's balance sheet for the financial year 2009- 2010 as an unsecured loan was routed from Cineyug Media and Entertainment Pvt Ltd.

Cineyug got the loan from as per the Cineyug balance sheet via the Kusegaon Fruit and Vegetables Pvt Ltd. Bollywood personality Karim Morani runs Cineyug and Balwas are investors in the company.

"2G scam investigations are now giving fresh leads on Balwas investing tainted funds in not only Bollywood productions but also financing an IPL's franchisee holding stakes in one of the teams. The probe is deepening as Shahid's funding routes are being unravelled in the probe," claimed an ED official.

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