Probe Karuna’s links to 2G scandal: Jaya

September 25, 2010 11:55:22 PM

Pioneer News Service | Chennai

Urges PM to ‘show the will and courage’ to sack Raja

The name of Tamil Nadu Chief Minister M Karunanidhi has surfaced for the first time in the multi-crore 2G spectrum allotment scandal, with AIADMK chief J Jayalalithaa asking Prime Minister Manmohan Singh to allow a free hand to the CBI for probing the “link” between the ETA Group (share-holders in Swan Telecom) and the DMK patriarch. The AIADMK chief also demanded immediate sacking of Union Telecom Minister A Raja for an independent probe into the scandal.

In a statement here on Thursday, Jayalalithaa made a scathing attack on Karunanidhi and said the CBI should probe acquisition of stakes worth Rs 380 crore by the Chennai-based Genex Exim in Swan Telecom, one of the major beneficiaries in the 2G spectrum allotment.

Pointing out Karunanidhi’s four-decade-long “association” with Genex Exim’s holding company, ETA Group, she said the truth would come out only when the Prime Minister “shows the will and courage to throw out Raja”.

“The CBI has to find out the links between the ETA Group and Genex Exim Ventures Pvt Ltd, a company that was launched in the end of 2008 with a share capital of Rs 1 lakh, but went on to acquire stakes in Swan Telecom to the extent of Rs 380 crore. It has to find out the links between the ETA Group and Tamil Nadu Chief Minister M Karunanidhi, the fountainhead of all corruption,” Jayalalithaa said.

“Only if this type of comprehensive investigation is done, will the whole truth come out about the financial connections between Karunanidhi and the ETA directors, who are executing all major construction projects in Tamil Nadu, including the new Secretariat complex, the new State library and several flyovers and bridges of the State Highways Department,” the AIADMK chief said.

She went on to add that such an investigation would also reveal that the Star Health Insurance of ETA Group — which bagged the controversial multi-crore health insurance contract of the Tamil Nadu Government — also registered Star Airlines, which is now controlled by members of the Karunanidhi family.

“Such an investigation will also reveal that the connection between Karunanidhi and the ETA Group is nothing new; it dates back to the days when the same people operated in the State in the late 1960s and early 1970s under the name East Coast Constructions, which is today a part of the ETA Group, and had been entrusted with the contract for constructing the Anna flyover on Mount Road and several bridges constructed way back in 1972-73, when Karunanidhi was the Chief Minister,” Jayalalithaa said.

She claimed that the probe would lead to the fact that these contracts were awarded to the company as quid pro quo for having distributed Karunanidhi’s flop film Pillayo Pillai, through which he tried to launch his son Mu Ka Muthu as a rival to Puratchi Thalaivar MGR.

“It will come out that some of these deals had notable mention in the Sarkaria Commission Report, which authentically chronicled Karunanidhi’s penchant for scientific corruption,” added the AIADMK chief.

She asked the Prime Minister to comment on Raja’s claim that he got all necessary approvals from the former. “Does Dr Manmohan Singh accept this (claim)? Is that why he feels that Raja need not resign? But all truth will come out only if Prime Minister Manmohan Singh shows the will and the courage to throw out Raja. The million-dollar question is, is he up to it?” she asked.

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