The Central Bureau of Investigation (CBI) arrested Asif Balwa, the brother of Swan Telecom promoter Shahid Balwa, and DB Realty official Rajiv Aggarwal, for their alleged involvement in the 2G scam.

Earlier in February, the CBI had arrested Shahid Usman Balwa, director of Mumbai-based DB Realty.

These arrests of DB Realty officials don''t bode well for Tamil Nadu's ruling DMK family. The arrests are linked to the CBI's investigation into a transaction of Rs. 214 crore, transferred by a DB Realty into Kalaignar TV, owned by the Karunanidhi family.

The Rs. 214 crore was  transferred in three stages, from Dynamix Realty to Kusegaon Realty Pvt Ltd to Cineyug Films and finally to Kalaignar TV.

Dynamix Realty is owned by DB realty. In turn, Balwa and Rajiv Agarwal, both senior officials of DB Realty have an equal stake in Kusegaon Realty. And Kusegaon in turn owns 49 per cent of Cineyug, so the money was routed into Kaliagnar, essentially through a series of in-house transactions.

DB Realty, and the Karunanidhi family have claimed all along that the money was an investment which was converted into a loan, and repayed.