Asif Balwa and Rajeev Agarwal, two jailed directors of a DB Group company and accused in 2G scam, on Friday termed as "baseless" in a Delhi court CBI''s charge that they could not lend a huge sum of Rs 200 crore to DMK-run Kalaignar TV with its limited paid-up capital.

They said the paid-up capital of Kusegaon Fruits and Vegetables Private Limited, of which both of them are Directors, has no relation to the business they do.

"CBI is saying the paid-up capital of Kusegaon Fruits and Vegetables Private Limited (of which Asif and Rajeev are Directors) is only Rs one lakh and, therefore, it could not have given a loan of Rs 200 crore to Cineyug Films. But the business I do is not related to the paid-up capital," their counsel Vijay Aggarwal told special CBI judge O P Saini.

Both the accused were charge sheeted for allegedly routing over Rs 200 crores illegal gratification from Dynamix Realty to Kalaignar TV Pvt Ltd through Kusegaon Fruits and Vegetables Pvt Ltd and Cineyug Films Pvt Ltd.

DMK supremo M Karunanidhi's wife Dayalu Ammal, his daughter Kanimozhi, a Rajya Sabha MP and Sharad Kumar, Managing Director of Kalaignar TV, holds 60, 20 and 20 per cent stakes respectively in the channel. Kanimozhi and Sharad are also accused in 2G case.