INDIAN POLITICIAN KANIMOZHI ARRESTED IN 2G SCAM

By P. Vijian

NEW DELHI, May 20 (Bernama) -- Prominent member of parliament K. Kanimozhi,
an accused in the multi-million ringgit mobile phone licensing scam, was jailed
after a special court rejected her bail plea Friday.

Kanimozhi, 43, daughter of former Tamil Nadu chief minister M. Karunanidhi,
was accused as a co-conspirator in the 2G scam (second generation spectrum
scandal), where licences were awarded to influential telecom companies at cheap
prices.

India's Central Bureau of Investigation (CBI) claimed she received huge
kick-backs worth nearly 200 crores (RM143 million) from the scam and diverted
the money to a Chennai-based Kalaignar Television Channel.

The politician was alleged to own 20 per cent stake in the channel and was
the "brain" behind launching Kalaignar TV in 2007, according to CBI.

A special CBI court also dismissed bail petition of Kalaignar TV's managing
director Sharad Kumar also charged for his involvement in the fraud.

They would be taken to Tihar Jail in Delhi.

Former Telecom Minister A. Raja, responsible for sale of the spectrum
licences in 2008, was sent to jail earlier this year and currently lodged in
Tihar Jail.

A Kuala Lumpur-based "datuk" (federal title) was also implicated in the mega
fraud and is under CBI's scanner.

The Controller and Auditor General estimated that Indian exchequer lost
revenue worth a staggering US$40 billion (RM120 billion), as price of the
licences were based on 2001 rates.

Both Raja and Kanimozhi are senior politicians from the Dravida Munnettra
Kazhagam (DMK) party, which lost power in Tamil Nadu l last week.