Thiruvananthapuram, June 28: The CPM-owned newspaper in Kerala, Deshabhimani, today admitted it had taken Rs 2 crore from a controversial lottery operator but defended the move as a legal way of raising money.

The confession came after rival Mathrubhumi front-paged a report, with copies of deposit receipts, showing Santiago Martin, an agent of Sikkim Lotteries, had purchased Deshabhi-mani development bonds for Rs 2 crore.

The funding flap comes close on the heels of a political furore over the sacking of K. Venugopal, the daily’s deputy general manager, for deals with a shady finance firm. The paper and the party have denied any wrongdoing.