Chennai (Agencies): DMK owned Kalaignar Television on Friday denied any link with the 2G spectrum allocation scam in the wake of CBI's allegations that there was a connection between accused Shahid Usman Balwa-promoted Swan Telecom and the channel.

"There is no link between the 2G spectrum allocation done in 2007-08 and the loan transaction that took place between Kalaignar TV and Cineyug Films private limited in 2009", the Managing Director of the channel Sharad Kumar said.

In a statement, he said the transactions with Cineyug Films were an "open book" and took place "with the knowledge of Income Tax Department officials".

Terming the transaction an "advance for transaction of shares", he added the sum received from Cineyug Films for purchase of shares was returned with interest when the two parties differed over the price evaluation of shares.

"All these transactions took place with the knowledge of the Income Tax Department officials and the relevant taxes (with respect to the transactions) have also been paid. Since the whole process has been carried out within the confines of the law, this process is an open book", Sharad Kumar said.

The CBI had told the court, "It has also come to light that there was a transaction of Rs 214 crore from M/s Cineyug Films private limited to Kalaignar TV in 2009." Kalaignar TV belongs to Sharad Kumar and others closely associated with Raja.

"The funds were arranged by M/s Cineyug Films from DB Group companies wherein the family members of Balwa are the directors or shareholders", CBI said in its application.