The Enforcement Directorate (ED) has seized assets worth Rs 752 crore of Associate Journals Limited (AJL) and Young India, linked to the Gandhi family. Of these, assets worth Rs 662 crore belong to AJL, and assets worth Rs 90 crore belong to Young India. The ED’s official statement in 2014 was that the Metropolitan Magistrate of Delhi had taken cognizance of a complaint. This action has been taken on the same basis.
National Herald Case: The Enforcement Directorate (ED) has seized assets worth Rs 752 crore of Associate Journals Limited (AJL) and Young India, linked to the Gandhi family. Of these, assets worth Rs 662 crore belong to AJL, and assets worth Rs 90 crore belong to Young India. According to ED, all these properties were acquired illegally and they have been temporarily confiscated under the Prevention of Money Laundering Act (PMLA).
Sonia and Rahul Gandhi both are accused
The ED’s official statement in 2014 was that the Metropolitan Magistrate of Delhi had taken cognizance of a complaint. This action has been taken on the same basis. At the same time, this cognizance of the Metropolitan Magistrate was also challenged in the Delhi High Court and the Supreme Court but no relief was received. It is worth noting that both former Congress President Sonia Gandhi and Rahul Gandhi are accused in this case and are currently on bail. The court had said in its order that seven people including Young India had wrongfully grabbed the properties of AJL.
ED cited the court order
Citing the court order, the ED elaborated that Young India was created specifically to take over the assets of AJL. AJL was established before independence to publish newspapers and magazines and it has 1000 shareholders including the country’s first Prime Minister Jawaharlal Nehru.
What is the matter?
AJL has been mainly publishing the newspapers National Herald, Navjeevan, and Qaumi Ekta. AJL was provided cheap land in many cities including Delhi, Mumbai, and Lucknow. A senior ED official said that in 2008, AJL stopped publishing newspapers and started using the properties commercially. At the same time, a conspiracy was hatched to take over the properties of AJL.
How many shares does Sonia-Rahul Gandhi have?
According to ED, loss-making AJL was given a loan of Rs 90.21 crore from the Congress party. Seeing no possibility of repayment of the loan from AJL, the Congress Party sold this loan to a new company Young India for just Rs 50 lakh. Interestingly, both Sonia Gandhi and Rahul Gandhi are directors of Young India and are also shareholders of 36-36 percent.
After this, Young India demanded AJL return the loan or give shares in the company. Instead of returning the money, AJL increased its share capital by issuing new shares worth Rs 90.21 crore and gave it to Young India. In this sequence, the stake of the old 1000 shareholders was reduced to just one percent.
What did the senior ED official say?
A senior ED official said that in this way AJL became a complete subsidiary of Young India and Young India came under control of its assets. ED has seized AJL’s immovable properties worth Rs 662 crore as well as Young India’s shares worth Rs 90.21 crore. ED has interrogated both Sonia Gandhi and Rahul Gandhi in this case.
