Weeks before Tamil Nadu votes, the DMK's party headquarters saw its president's daughter, Kanimozhi, interrogated along with her stepmother, Dayalu Ammal about a kickback of Rs. 214 crore from the spectrum scam. (Read: Who is Kanimozhi?)
Kanimozhi and Dayalu Ammal together own 80 per cent stake in Kalaignar TV, whose offices are based in the party's headquarters. A cheque for Rs. 214 crore that was deposited with Kalaignar has led to the theory that the channel may have served as a front for those involved with the scam, including the DMK's A Raja, the former Telecom Minister, who is now in jail.
Kanimozhi displayed her trademark composure after her interrogation. "We are answering, whatever questioning is required, we are cooperating unlike any other political leader. That speaks of us coming clean," she commented.In 2008, when he was Telecom Minister, Mr Raja gave away valuable spectrum at throwaway prices to companies including Swan Telecom, promoted by Shahid Balwa. He allegedly repaid Mr Raja Rs. 214 crore. Investigators believe the bribe was paid via a Mumbai company named Cineyug Films to Kalaignar TV.
However, Kanimozhi and the management of the channel have both said that the money was a loan that was repaid with an interest of Rs. 30 crore.
But if the DMK hopes to distance itself from the 2G scam that erupted with volcanic force in November, it now needs a miracle.
Since 2008, when Mr Raja allocated 2G licenses, there has been talk of his blatant manipulation of government policies. A CBI inquiry was launched, and showed no results. The Opposition and the media kept underlining that Mr Raja was being protected by the government at the Centre, because of the DMK's 18 MPs which made it an indispensable ally.
Then in November 2010, a report by the government's auditor estimated that Mr Raja has cost the country up to 1.76 lakh crore with his swindle. Combined with the Supreme Court demand that the CBI abandon its lethargic inquiry into the scam and move with more energy and prowess, the spectrum scam leapt to the front of the political landscape.
Mr Raja, a popular Dalit leader known for his close relationship with Kanimozhi, resigned from the government. And since then, the CBI's investigation has trail-blazed its way to the heart of the DMK. In recent months, the houses and offices of close associates of the party's senior-most leaders have been raided. And then the CBI found the cheque for Kalaignar.
The Managing Director of Kalaignar, Sharad Kumar, has maintained that that the money was an advance payment for equity and that the entire amount was returned with Rs. 30 crore as interest after the two parties differed over the evaluation of shares. Kanimozhi said today that the CBI asked her to "substantiate that statement."
Today's developments are a PR nightmare for the DMK. The CBI has to present its chargesheet in the spectrum scam by March 31 to the Supreme Court. The chargesheet, sources say, will refer to Kanimozhi, though she may not be accused of corruption herself.
With elections just weeks away, Opposition parties, particularly the DMK's main rival Jayalalithaa, have been using the spectrum scam to accuse the DMK of incontrovertible corruption.
The damage done to the DMK by the 2G scam was also visible as it dealt with another public challenge this week - negotiating its partnership for the elections with the Congress. So far, the Congress has played the role of a younger sibling, providing the DMK with external support. This time around, it insisted that it be assigned 63 seats. The DMK protested too much and too loudly, threatening to pull out of the UPA coalition at the Centre. Congress party president Sonia Gandhi refused to be moved by the blackmail, and finally, the DMK capitulated.
So far, both sides have denied that the 2G scam factored into their electoral equation.
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