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Policy & Regulation
2G scam:Vijaya Mallya’s company under CBI scanner
TT Correspondent |  |  24 Jun 2011

The CBI probe on 2G spectrum money trail is getting bigger and bigger with Vijaya Mallya’s UB group and three other companies are falling into it on Friday.

The media reports that are coming in suggest that  UB Group, India Cements and two unnamed companies had facilitated payments to Kalaignar TV to help it repay Rs 200 crore to Swan Telecom.

Kalaignar has rebutted the allegations saying med that it was a legitimate loan taken on market rates to run the channel and they had returned the money with interest (approximately Rs 214 crore) to DB Realty.

A report has quoted a CBI official as saying that there is “no criminality” in companies lending money to Kalaingar but a probe will be carried out to ascertain the reasons behind it.

 "We will look at the circumstances under which money was given," the official reportedly said.

The UB Group has dismissed the suggestions saying  "The UB Group would like to clarify that the only commercial transaction that it has with Kalaignar TV is a regular advertising contract which is in the ordinary course of business... Any speculation or suggestion of any other financial transaction in the nature of a loan to Kalaignar TV is completely untrue. We would be happy to clarify the same if and when any agency contacts us," a news agency reported quoting a company spokesperson.

    
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24 Jun 2011(IST)  
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