Shahid Usman Balwa, an accused in the 2G spectrum allocation scam and promoter of DB Realty and Swan Telecom, is in fresh trouble.
The Central Bureau of Investigation (CBI) has started an investigation against Balwa for misusing loans. On September 6, the CBI’s bank security and frauds cell (BS&FC) registered the preliminary inquiry report.
The CBI suspects Balwa of taking Rs180 crore as loan from LIC Housing Finance and paying it quid pro quo to DMK’s Kalaignar TV. In exchange, Balwa got licence to provide unified access service (UASL). A Raja, accused in the 2G scam, was then the telecom minister.
The CBI is also investigating the role of TS Vijayan, managing director of LIC Housing Finance. LIC officials connived with private companies, including DB Realty, to get loans disbursed in the name of housing projects, an officer said.
Apart from DB Realty, there were five or six companies, which had the same modus operandi: using housing loans for other business interests.
“The agency will record the statements of Balwa and top LIC officials,” a source said. “When the loans were disbursed, Balwa was paying Kalaignar TV through Karim Morani’s Cineyug Films.” The agency is expected to complete the probe by October 15.