New Delhi: Enforcement Directorate (ED) on Tuesday told a special court trying 2G scam case, that the accused chargesheeted by it in a money laundering case, including ex-Telecom minister A Raja and DMK MP Kanimozhi, were involved in the Rs 200crore money transaction which was not "bonafide" and "genuine".
Advancing arguments on framing of charges, special public prosecutor Anand Grover told the court that the series of transactions relating to transfer of Rs 200 crore from DB group company to DMK-run Kalaignar TV through Kusegaon Fruits and Vegetables Pvt Ltd and Cineyug Films Pvt Ltd were not a "genuine business transaction".
"We (ED) are saying that these were not genuine and bonafide transactions. The other two entities (Kusegaon Fruits and Vegetables Pvt Ltd and Cineyug Films Pvt Ltd) have no role at all except transferring the money. There was no proper documentation regarding these transactions which involved huge amount of money," he told Special CBI Judge O P Saini.
Grover also told the court that the complaint filed by ED and documents annexed along with the charge sheet prima facie show that it was not a genuine business transaction.
He argued that in this case, individuals had used their companies for commission of the crime and the firms as well as the persons were liable to be made accused in the case.
"The companies are also liable as the individuals have used the firms as vehicle," he said, adding, "no businessman can lend huge amount of money without any guarantee".
"This shows that it was not a genuine transaction. It (transfer of money) was not meant for business. It was only for conduiting. They had to route the money through others for the purpose of showing the entire transaction as genuine," the prosecutor argued. The arguments on framing of charges in the case remained inconclusive today.
ED has chargesheeted 19 accused - 10 individuals and nine firms - in the case.
In its charge sheet, ED had claimed its probe into the case emanates from the 2G spectrum allocation scam and the accused had allegedly conspired and committed offences under provisions of the Prevention of Money Laundering Act (PMLA).
Grover argued Swan Telecom promoters Shahid Usman Balwa and Vindo Goenka, co-accused in the case, were known to Raja since the time he was Environment Minister.
"DB group received many environmental clearances when Raja was the Environment Minister. They (Raja, Shahid Balwa, Goenka) were familiar with each other," he said.
Regarding other co-accused, Grover said they were connected with the money transactions.
The court had on August 20 granted bail to Raja, Kanimozhi and eight others in the case saying that considering their conduct, there was "no likelihood" that they will commit such an offence again.
The court had also noted in its order that the accused have given an explanation regarding the transfer of Rs 200 crore to DMK-run Kalaignar TV from DB group company, which according to ED, was a bribe paid in return for grant of 2G licences to Swan Telecom Pvt Ltd.
The court had, in a separate order, also granted bail to DMK supremo M Karunanidhi's wife Dayalu Ammal who was also chargesheeted as an accused along with others in the case.
Besides Raja, Kanimozhi and Dayalu Ammal, the other accused in the case are Shahid Usman Balwa and Vinod Goenka, Directors of Kusegaon Fruits and Vegetables Pvt Ltd Asif Balwa and Rajiv Agarwal, Kalaignar TV MD Sharad Kumar, Bollywood producer Karim Morani and P Amirtham.
They were also granted bail by the court which had imposed several conditions on them.
It also named Swan Telecom Pvt Ltd, Kusegaon Realty Pvt Ltd (formerly known as Kusegaon Fruits and Vegetables Pvt Ltd), Cineyug Media and Entertainment Pvt Ltd (formerly known as Cineyug Films Pvt Ltd), Kalaignar TV Pvt Ltd, Dynamix Realty, Eversmile Construction Company Pvt Ltd, Conwood Constructions and Developers (P) Ltd, DB Realty Ltd and Nihar Constructions Pvt Ltd as accused in the case.
