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ED opposes bail to Raja, others in 2G money laundering case

New Delhi

30-May-2014

The enforcement directorate, opposing the bail applications of former communication minister A. Raja, DMK MP Kanimozhi and others, told a court here Friday that there exists a strong case against the accused which, in all probability, will result in conviction.

"With supporting documentary and material evidence, there exists a prima facie case against the accused, which, in all probability, will result in conviction," ED told Central Bureau of Investigation Special Judge O.P. Saini.

Counsel Navin Kumar Matta, appearing for the directorate, said that from the documents and material evidence, there is sufficient cause to believe that all the accused are guilty of the offences with which they are severally and individually charged.

Raja, Kanimozhi, DMK chief M. Karunanidhi's wife Dayalu Ammal, Swan Telecom Pvt. Ltd. (STPL) promoters Shahid Usman Balwa and Vinod Goenka, Kusegaon Fruits and Vegetables Pvt. Ltd. (KFVPL) directors Asif Balwa and Rajiv Agarwal, Bollywood producer Karim Morani, Kalaignar TV director Sharad Kumar and P. Amirthan were chargesheeted by ED May 2 under various sections dealing with the Prevention of Money Laundering Act (PMLA).

Matta further added that the case involves commission of grave economic offences by the accused causing enormous loss to the public exchequer and laundering the proceeds of crime (which too are substantial) through a series of layering transactions solely with a view to lending a colour of legitimacy.

He argued that Raja, when minister, subverted the telecom policy to favour certain pre-identified people and requested the court that bail application filed by accused deserves to be rejected.

The ED said that Raja's present application for bail must be considered as a special case, in light of the gravity and seriousness of the offence and particularly the manner in which the same was committed and subsequently attempted to be portrayed as a genuine transaction after Raja was summoned for investigation by the CBI.

"The investigation revealed that amount of Rs.200 crore was paid by promoters of STPL, using their group entity Dynamix Realty, to KTV, through KFVPL and CFPL (Cineyug Films) in the garb of legitimate financial transaction, that is as loan/share application money," the ED said in the charge sheet.

It said the payment was illegal gratification for and on behalf of Raja and his associates in lieu of illegal favours given to the STPL for grant of UAS licence.

The court posted the matter for June 3 for further hearing on bail application and to commence arguments on charges in the case.

The ED has also charge sheeted 10 companies in the case - Swan Telecom, Kusegaon Realty, Cineyug Films, Kalaignar TV, Dynamix Realty, Eversmile Construction Company, Conwood Construction and Developers, DB Realty and Nihar Construction.

Authorised representatives of these companies appeared before the court.

Meanwhile, Dayalu Ammal also moved her bail application and sought exemption from personal appearance on medical grounds. The court allowed her plea. - IANS