Key points of order denying bail to Kanimozhi, Sharad Kumar

The Delhi High Court Wednesday rejected the bail pleas of DMK MP Kanimozhi and Kalaignar TV chief Sharad Kumar in 2G spectrum case citing prima facie evidence and high political connection. Here are the key points of the court’s order:

* Kalaignar TV Pvt. Ltd. is a closely owned company, in which the two are shareholders.

* Twenty percent stake each is held by DMK MP Kanimozhi and Kalaignar Tv chief Sharad Kumar and balance 60 percent stake in the company is held by Dayalu Ammal, step-mother of the petitioner Kanimozhi.

* Kanimozhi and co-accused former communication minister Andimuthu Raja are important functionaries of same political party.

* Co-accused Raja took over charge as minister for communications and information technology in May 2007 and the petitioners parted ways with Sun TV network in June 2007 and promoted their own company Kalaignar TV Pvt. Ltd.

* Petitioner Kanimozhi belongs to the same political party to which accused Raja belongs, and the said party is sharing power in the central government.

* Raja had close associations with the petitioners (Kanimozhi and Sharad Kumar) and he helped their company to get registration with information and technology department and also to get included in the bouquet of Sky TV.

* Swan Telecom Pvt. Ltd., which is owned by DB Realty Group of Companies, offloaded its equity to Etisalat Mauritius Ltd. and Genex Exim Ventures Pvt. Ltd. and in consideration received Rs.3,228 crore and Rs.380 crore respectively on Dec 17, 2010.

* The transfer of the money from DB Realty Group through its group companies Dynamix Realty, Eversmile Construction Company Pvt. Ltd. and Conwood Construction Developers Pvt. Ltd. started with effect from Dec 23, 2008, and it continued till August 2009.

* The bribe money of Rs.200 crore was transferred to Kalaignar TV Pvt. Ltd. in instalments through a circuitous route i.e. via Kusegaon Fruits and Vegetables Pvt. Ltd. and Cineyug Films Pvt. Ltd.

* Once the scam came to the light and first information report (FIR) was registered, the reverse trail of money started via same route of companies.

* The reverse money trail started only after co-accused Raja was contacted by the CBI for his examination scheduled Dec 24, 2010.

* Even in this reverse money trail, the dates of transfer of money from one company to other and to the other are either the same or in very close proximity.

* The investigation revealed that no contemporaneous documents pertaining to the transfer of money were prepared at the time of transfer of money from DB Realty Group Companies to Kusegaon Fruits and Vegetables Pvt. Ltd., and from Kusegaon Fruits and Vegetables Pvt. Ltd. to Cineyug Films Pvt. Ltd., and from Cineyug Films Pvt. Ltd. to Kalaignar TV Pvt. Ltd.

* It is submitted by learned special public prosecutor that during investigation photocopies of shares subscription and shareholders agreement and agreement to pledge between Cineyug Films Pvt. Ltd. and Kalaignar T.V. Pvt. Ltd. were produced by the accused persons but they have deliberately not produced the original agreements because the date of purchase of stamp papers used would have revealed that these agreements have been subsequently prepared to create evidence in defence.

* Above facts and circumstances, prima facie, show the complicity of the petitioners in the conspiracy and their having received illegal gratification of Rs.200 crore in the account of the company controlled by them, namely Kalaignar T.V. Pvt. Ltd.

* The proximity of dates on which the money got transferred via circuitous route involving DB Realty Group Companies, Kusegaon Fruits and Vegetables Pvt. Ltd. and Cineyug Films Pvt. Ltd. as also the reverse trail of money, prima facie, cannot be a coincidence and this gives rise to a prima facie involvement that aforesaid methodology was adopted by the petitioners and their co-accused persons with a view to conceal the trail of money from DB Realty Group which owns Swan Telecom Pvt. Ltd. and Unitech Group of Companies in the matter of grant of UAS Licences and spectrum have caused a loss of about Rs.30,000 crore to the state exchequer.

* The petitioners are in control of Kalaignar T.V. Pvt. Ltd., as such they are in position of power to influence the witnesses, particularly the employees of their company.

* Thus, considering the financial and political clout of the petitioners, a possibility cannot be ruled out that if the petitioners are freed at this stage, they would interfere with the investigation or try to influence the witnesses.