2G case: Court to hear ongoing final arguments on October 19

New Delhi: A special court would hear the remaining final arguments in the 2G spectrum allocation scam case and a related money laundering case, in both of which former Telecom Minister A Raja, DMK MP Kanimozhi and others are facing trial, in the next few weeks.

Special CBI Judge O P Saini fixed October 19 to hearing the matter in which CBI had earlier alleged that accused Swan Telecom Pvt Ltd (STPL) was a "front company" of Reliance Anil Dhirubhai Ambani Group (ADAG) which had infused Rs 28.29 crore to increase its net worth for bagging radio waves for Jammu and Kashmir telecom circle in 2007.

Special public prosecutor Anand Grover, whose arguments are yet to conclude, had highlighted the funding of Swan Capital Pvt Ltd, which later became STPL, and termed the infusion of Rs 28.29 crore into it as a "sham transaction."

The court also fixed November 3 for hearing final arguments in 2G scam-related money laundering case in which Raja, Kanimozhi and 17 others are facing trial.

Enforcement Directorate (ED) had earlier told the court that Rs 200 crore as "illegal gratification" was transferred to DMK-run Kalaignar TV by DB group firm through a "circuitous route" in return for grant of 2G spectrum to STPL by Raja.

In the case registered by CBI, STPL and its promoters, Shahid Usman Balwa and Vinod Goenka, and three top executives of Reliance ADAG, Gautam Doshi, Surendra Pipara and Hari Nair, are facing trial in the 2G spectrum allocation case along with Raja, Kanimozhi and others.

Besides them, former telecom secretary Siddharth Behura, Raja's erstwhile private secretary R K Chandolia, Unitech Ltd MD Sanjay Chandra, Directors of Kusegaon Fruits and Vegetables Pvt Ltd Asif Balwa and Rajiv Agarwal, Kalaignar TV Director Sharad Kumar and Bollywood producer Karim Morani are also accused in the case.

Apart from STPL, two other telecom firms, Reliance Telecom Ltd and Unitech Wireless (Tamil Nadu) Ltd, are also accused. All the accused have earlier denied all allegations levelled against them by CBI.

In the ED's money laundering case, the agency had alleged that Raja had "illegally" granted 2G spectrum licences to ineligible firms for which Rs 200 crore was transferred to Kalaignar TV.

It had alleged that a conspiracy was hatched by Raja, Kanimozhi, DMK supremo M Karunanidhi's wife Dayalu Ammal and other accused and Rs 200 crore was the "proceed of crime".

Raja, Kanimozhi, Dayalu Ammal and 16 others, including nine firms, are facing trial in the case. ED had on April 25 last year filed a charge sheet against the accused under Prevention of Money Laundering Act (PMLA).

The other accused are STPL promoters Shahid Usman Balwa and Vinod Goenka, Kalaignar TV MD Sharad Kumar, Directors of Kusegaon Fruits and Vegetables Pvt Ltd, Asif Balwa and Rajiv Agarwal, Bollywood producer Karim Morani and P Amirtham. All of them are out on bail.

The court had also framed charges against accused firms STPL, Kalaignar TV, Kusegaon Realty Pvt Ltd (formerly Kusegaon Fruits and Vegetables Pvt Ltd),Cineyug Media and Entertainment Pvt Ltd (formerly called Cineyug Films Pvt Ltd), Dynamix

Realty, DB Realty Ltd, Eversmile Construction Company Pvt Ltd, Conwood Constructions and Developers (P) Ltd and Mystical Construction(P) Ltd (earlier M/s Nihar Constructions(P) Ltd).