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Corruption Isles

Scam money may have been funnelled to tax havens

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Corruption Isles
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HAS a part of the graft money accumulated by Jayalalitha and Sasikala made its way to the Cayman Islands? Investigating officials suspect that monies were being funnelled out through the hawala network. Sources who were once close to Sasikala speak of two substantial transactions in the Canary Islands in June and July 1995. Rs 48.5 crore was allegedly deposited in the first month and Rs 120 crore in the following month.The money was invested through Shaw Murphy Pvt Ltd, a Cayman Islands-based portfolio management firm and the money was deposited for six months. 

While Jayalalitha’s name does not figure as one of the depositors, sources say that Sasikala and her nephew V. Dinakaran who was earlier booked for FERA violations figure prominently. Interestingly, Sasikala’s husband M. Natarjan’s name is also allegedly linked to some of the investments. Money was also suspected to have been diverted towards benami investments in the United States.

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According to CID sources in Chennai, investigations into the funnelling of money abroad is still in its preliminary stages. But there are pointers that the money found its way through friends and associates of Sasikala in Singapore, Malaysia, Switzerland, Australia and the US. Dinakaran’s contacts in Singapore are well-known. Points out a CID official: "We are aware that funds were diverted by some members of Sasikala’s family. All the money that the family came by in the last few years have not been invested within the country."

Sasikala was widely recognised in business circles during Jayalalitha’s regime as the person to be contacted to bag government contracts and secure industrial licences. According to CID officials, there was even a network of agents who fixed the margins to be paid for government sanction. Since the then chief minister had through a government order made it her prerogative to okay all deals exceeding Rs 1 crore, it was the unwritten norm that the agents rather than ministers were the right people to tap to get government okays.

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