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The Enforcement Directorate is examining a request from the Central Bureau of Investigation asking it to attach properties of DB Realty worth over Rs 200 crore of DB Group under the stringent Prevention of Money Laundering Act.
The Enforcement Directorate is examining the legal issues on whether to attach the properties of DB Realty as proceeds of crime or that of the former Managing Director of the company Shahid Usman Balwa, who is now in jail, officials privy to the probe said in New Delhi.
CBI while reasoning out the attachment of property of the real estate group alleged that Rs 200 crore bribe money was moved to Dravida Munnetra Kazhagam-owned Kalaignar TV from DB realty through a circuitous route, a charge denied by the company.
The CBI wrote to the ED as the agency does not have powers to attach the properties as according to the provisions of the PMLA, it is the Enforcement Directorate which can take such an action.
In a statement, DB Realty distanced itself from the 2G spectrum issue and said that the real estate firm had had no direct or indirect shareholding in any telecom business entity.
"Some promoters of the company, in their individual capacity, have invested in Swan Telecom Private Limited (now known as Etisalat DB Telecom Private Limited)," a statement issued by the company said. The statement from DB Realty came as the stocks of the real estate company declined by 1.79 per cent in last 10 days after the news of the attachment of property started doing the rounds.
In its chargesheet the CBI has alleged that Dynamix realty, a partnership firm of DB group of companies which also ran Swan Telecom, paid Rs 200 crore as illegal gratification to Kalaignar TV, which is controlled by the affiliates of DMK
-- Kanimozhi and Sharad Kumar. Former Telecom Minister A Raja belonged to DMK.
It alleged that there were several circumstances which "conclusively" established that the amount paid by Dynamix Realty to Kalaignar TV Pvt Ltd was not a genuine business transaction but bribe paid in lieu of the telcom licences, valuable spectrum and other undue benefit given to Swan Telecom -- one of the beneficiaries of spectrum allocation.
The money was allegedly routed through Kusegaon Fruits and Vegetables Pvt Ltd and Karim Morani promoted Cineyug Films Pvt Ltd.
Once the CBI started its probe in the scam, the money was routed back to Dynamix realty.
The money was brought back as an alleged investment in the property business. The agency's move to attach properties is an attempt to recover the alleged Rs 200 crore bribe money paid to Kalaignar TV, agency sources said.