In 2012, Subramanian Swamy filed a complaint alleging that some Congress leaders were involved in cheating and breach of trust in the acquisition.
Congress leader Rahul Gandhi, today, appeared before the Enforcement Directorate (ED) in New Delhi for questioning in the National Herald money laundering case. Rahul Gandhi marched to the ED office in the national capital, accompanied by hundreds of party members.
The investigating agency had summoned Rahul Gandhi and his mother, Congress President Sonia Gandhi, to explain allegations of money laundering in the National Herald Case. However, due to Covid related issues, Sonia Gandhi is admitted to a hospital in Delhi because of which ED has issued her a fresh summons for June 23.
Read | National Herald case: Rahul Gandhi, Priyanka Gandhi arrive at Congress HQ, march to ED office with INC workers
The Enforcement Directorate will record Rahul Gandhi's statement under the criminal sections of the Prevention of Money Laundering Act (PMLA). Rahul Gandhi is the Lok Sabha member from Wayanad in Kerala. The probe is related to alleged financial irregularities in the Young Indian Pvt Limited owned National Herald newspaper.
What is the National Herald case?
India's first Prime Minister Jawaharlal Nehru started the National Herald newspaper in 1938. The newspaper was published by Associated Journals Limited (AJL) which was founded in 1937 with 5,000 other freedom fighters as its shareholders. The company did not belong to any one person.
In 2010, the Associated Journals Limited had 1,057 shareholders. It incurred losses, and its holdings were transferred to Young Indian Pvt Ltd (YIL) in 2011, with Sonia Gandhi and Rahul Gandhi on the board of directors.
In 2012, BJP leader and advocate Subramanian Swamy filed a complaint before a trial court alleging that some Congress leaders were involved in cheating and breach of trust in the acquisition of Associated Journals Ltd by Young Indian Ltd (YIL). He alleged that YIL had taken over the assets of the National Herald in a 'malicious' way.
Under the Income Tax Act no political organisation can have financial transactions with a third party. Swamy further claimed that Sonia Gandhi and Rahul Gandhi had taken over the assets to gain profits. He also claimed Young Indian Ltd paid only Rs 50 lakh for the right to recover Rs 90 crore Associated Journals Limited owed to the party. This implies that the Congress had written off the remaining Rs 89.5 crore.
At the time of shutting down the National Herald in 2008, Associated Journals Limited owed the Congress an accumulated debt of Rs 90 crore. In 2010, the Congress assigned this debt to Young India Private Limited, a non-profit company that had been created a few months earlier.
Sonia Gandhi and Rahul Gandhi each own 38% of the company. The remaining 24% share of the company is owned by Congress leaders Motilal Vora and Oscar Fernandes, journalist Suman Dubey and entrepreneur Sam Pitroda, who are also named in the case.
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