Former Chennai mayor alleges business links between Stalin’s family and mining baron Sekar Reddy

CHENNAI: Threatening to file a defamation suit against DMK working president M K Stalin, former Chennai mayor Saidai S Duraisamy on Wednesday alleged business links between sand mining baron J Sekar Reddy and the production company owned by Stalin's son Udhayanidhi Stalin.

Speaking to reporters at his residence, Duraisamy said Stalin had been making false statements to media about income tax officials raiding his house. "He must apologise for spreading lies. I wrote him three letters warning him to desist from making defamatory remarks against me," Duraisamy said.

After the I-T department conducted searches in properties associated with jailed AIADMK leader V K Sasikala, Stalin had remarked that nothing had transpired out of previous I-T raids. Stalin mentioned that I-T had raided Duraisamy's house (an incorrect remark as the department had raided properties belonging to Duraisamy's son, Vetri Duraisamy, and not the former mayor).

Asserting that he would file a defamation suit, Duraisamy said he had been forced to "expose corruption complaints" about Stalin due to the latter's actions. "Are there not links between Stalin's family and Sekar Reddy? What is the connection between Red Giant Movies and Reddy?" Duraisamy said.

Duraisamy alleged that Stalin had met with 2G scam co-accused Shahid Usman Balwa, promoter of Swan Telecom, and had negotiated a Rs 200crore deal. "Did (Stalin) not meet (Shahid) Balwa twice and discuss handing over Rs 200 crore to Kalaignar TV?," he said, and asked Stalin if he would want a CBI investigation into Sadiq Batcha's death.

Batcha, who was an accused in the 2G scam, was a key aide to former Union telecom minister A Raja, the prime accused in the scam. In May 2011, Batcha was found dead at his residence in what the CBI later said was a case of suicide.

"Batcha had provided evidence of Stalin's meeting with Balwa to the CBI," Duraisamy said.

Duraisamy, who is fighting a case against Stalin in the Supreme Court over the declaration of results in the 2011 assembly election, when he contested against Stalin from the Kolathur constituency and lost, alleged that Udhayanidhi and Stalin's estranged elder brother and former Union minister, M K Alagiri, had evaded paying import duties on a Rs 22crore Hummer vehicle.

"Is it not true that the CBI raided the properties of Udhayanidhi and Alagiri's farmhouse in this regard? How did Udhayanidhi gain possession of the Hummer vehicle? Will he ask the CBI to expedite investigation into the tax evasion case against his son, Udhayanidhi?" Duraisamy said.