BREAKING | National Herald Rs 2000 Crore Scam
Rahul Gandhi’s lawyer Right now (July 5) advised the courtroom that Congress was making an attempt to save lots of the historic Nationwide Herald, not promote its belongings. He argued that the case is about reviving a legacy, not making revenue.
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NEW DELHI: Senior advocate R S Cheema, who appeared for Congress chief Rahul Gandhi, advised the courtroom that the All India Congress Committee (AICC) was not making an attempt to promote any property of Related Journals Restricted (AJL).
As a substitute, he mentioned, the Congress get together was making an attempt to guard and revive a historic establishment that was intently linked with India’s freedom battle.
Cheema introduced his arguments earlier than Particular Choose Vishal Gogne of Delhi’s Rouse Avenue Courtroom in response to the case being dealt with by the Enforcement Directorate (ED).
The ED has accused senior Congress leaders Sonia Gandhi and Rahul Gandhi, together with the late Motilal Vora and Oscar Fernandes, and in addition Suman Dubey, Sam Pitroda, and the corporate Younger Indian, of conspiracy and cash laundering.
The ED mentioned that the group wrongly took over properties price greater than Rs 2,000 crore that belonged to AJL, the corporate which used to publish the Nationwide Herald newspaper.
Cheema questioned the ED’s proof and mentioned:
“Can my buddy (ED counsel) inform me why they have been shy of putting the Memorandum of Affiliation (MoA) of AJL?”
He reminded the courtroom about AJL’s origin and its position in India’s historical past:
“AJL was established in 1937 by Jawaharlal Nehru, J. B. Kripalani, Rafi Ahmed Kidwai, and others.”
Cheema defined that AJL was by no means a business firm and at all times labored based mostly on the insurance policies of the Indian Nationwide Congress:
“The AJL MoA mentioned that the coverage of AJL would be the coverage of the INC. All by way of, AJL didn’t have earnings. Within the post-independence interval, it was by no means a business establishment.”
He added that the Congress get together was not keen on creating wealth from AJL, however solely needed to revive the establishment that performed a giant position in India’s historical past:
“We (All India Congress Committee) have been making an attempt to retrieve an establishment which is a part of the liberty motion heritage. The issue was not recovering the mortgage (given to AJL); the issue was to revive it, to see that it comes again on the rails. AICC was not in search of revenue from gross sales. This can be a squinted model.”
Based on the ED, the Gandhis owned 76% of the shares in Younger Indian, which was used to take management of AJL’s belongings in trade for a Rs 90 crore mortgage. The ED claims this was a fraudulent act.
A day earlier, on Friday, senior advocate Abhishek Manu Singhvi had completed his arguments on behalf of Sonia Gandhi.
Earlier on July 3, advocate Raju argued that the Gandhis have been the “helpful house owners” of Younger Indian and obtained full management over it after the opposite shareholders handed away.
The ED has filed a chargesheet underneath Sections 3 and 4 of the Prevention of Cash Laundering Act (PMLA), which take care of cash laundering and its punishment. The names talked about within the chargesheet embrace Suman Dubey, Sam Pitroda, Sunil Bhandari, Younger Indian, and Dotex Merchandise Non-public Restricted.
YESTERDAY IN DELHI COURT
Within the Nationwide Herald cash laundering case, senior advocate Abhishek Manu Singhvi, who appeared on behalf of Congress chief Sonia Gandhi, on Friday (July 4) strongly criticized the case filed by the Enforcement Directorate (ED).
Singhvi mentioned the entire matter was “very uncommon” and questioned the authorized foundation of the allegations made by ED.
“That is really an odd case. Greater than unusual. Unprecedented. That is an alleged case of cash laundering, with none property, with out use or projection of property,”
-Singhvi advised the courtroom, emphasizing that the case lacks the essential parts normally seen in a cash laundering case.
This assertion got here after Further Solicitor Common S V Raju, who was showing for the ED, accomplished his arguments on July 3, specializing in whether or not the courtroom can legally take discover (cognisance) of the chargesheet filed.
The ED has accused a number of prime Congress figures, together with Sonia Gandhi, Rahul Gandhi, and late Congress leaders Motilal Vora and Oscar Fernandes, together with Suman Dubey, Sam Pitroda, and a personal firm Younger Indian, of being concerned in a conspiracy to illegally take over properties price greater than Rs 2,000 crore.
These properties initially belonged to Related Journals Restricted (AJL), which is understood for publishing the historic Nationwide Herald newspaper.
Based on the ED, the Gandhis owned 76% of shares in Younger Indian, and so they allegedly used this firm to fraudulently take management of AJL’s properties. The ED claims that this was carried out in trade for a mortgage of Rs 90 crore, calling it a misuse of funds.
In response to those allegations, Singhvi defined to the courtroom that the primary intention of the transfer was to make AJL debt-free, not for private acquire.
“Each firm is entitled underneath legislation and does, daily, make their firms get free by quite a lot of devices. So you’re taking away the debt and assign it to a different entity. So this firm turns into debt free,”
-Singhvi defined, defending the restructuring as a typical and authorized enterprise technique.
He additionally identified that Younger Indian is a non-profit firm, which implies it doesn’t work to earn earnings for its shareholders.
“Means it can’t give dividends, it can’t give perks, it can’t give salaries, it can’t give these bonuses. It can provide nothing,”
-Singhvi careworn, highlighting that no private or monetary acquire was attainable for the Gandhis or others concerned by way of this firm.
Criticizing the ED’s actions additional, Singhvi mentioned the company stayed inactive for a few years after which out of the blue acted based mostly on a personal grievance. He urged this reveals political bias and misuse of authorized course of.
“They’re, clearly folks related to the Congress. To have the Nationwide Herald in a physique not related to the Congress can be worse than having Hamlet with out the Prince of Denmark,”
-Singhvi mentioned, evaluating the state of affairs to a Shakespearean tragedy lacking its important character.
He additionally argued that the present courtroom does not have jurisdiction to even hear the case, elevating critical authorized questions concerning the course of being adopted.
Beforehand, on July 3, ASG Raju advised the courtroom that Sonia and Rahul Gandhi have been the “helpful house owners” of Younger Indian, and that they obtained full management over the corporate after the demise of different shareholders.
The ED has filed its detailed chargesheet underneath Sections 3 and 4 of the Prevention of Cash Laundering Act (PMLA), which take care of the crime of cash laundering and its punishment.
Different names talked about within the chargesheet embrace Suman Dubey, Sam Pitroda, Sunil Bhandari, Younger Indian, and Dotex Merchandise Non-public Restricted.
DAY BEFORE YESTERDAY IN DELHI COURT
Within the Nationwide Herald case, the Enforcement Directorate (ED) on July 3 knowledgeable a Delhi’s Rouse Avenue Courtroom on Thursday that the corporate Younger Indian, whose majority house owners are Sonia Gandhi and Rahul Gandhi, was solely one other title for the Congress Celebration and was made to cover the get together’s involvement within the case.
Based on the ED, Younger Indian fraudulently took over properties price Rs 2,000 crore belonging to Related Journals Restricted (AJL). AJL was the writer of the Nationwide Herald newspaper.
ALSO READ: National Herald Case | ED Tells Court “Prima Facie” Case Made Against Sonia, Rahul Gandhi
In return, Younger Indian solely paid Rs 90 crore as a mortgage, which has raised critical issues about how the transaction was carried out.
On the second day of the listening to on this case, Further Solicitor Common (ASG) SV Raju, who’s showing on behalf of the ED, advised the courtroom that this can be a “traditional case of cash laundering”.
ASG Raju mentioned,
“Younger Indian was one other face of Congress. It was created to keep away from the limelight on a nationwide get together. Sonia Gandhi and Rahul Gandhi are holding 100% of Younger Indian as different shareholders have died.”
The ED believes that the true cause for creating Younger Indian was not enterprise or charity, however solely to silently take management of AJL’s huge property price Rs 2,000 crore, which initially belonged to the Nationwide Herald newspaper group.
The mortgage quantity of Rs 90 crore proven within the books, the ED argues, was only a technique to cowl up the true goal.
“I accomplished my arguments topic to my rejoinder. The opposite aspect was to argue at 2:30 PM, however it was inconvenient, in order that they’ve requested them until tomorrow. It’s an open and shut case. Younger Indian was used for the aim of usurping properties price nearly Rs 2,000 crores of AJL, and that’s our case, and it’s documented. It’s an open and shut case.”
-ASG S V Raju mentioned immediately to the media after the listening to.
On July 2, The Enforcement Directorate (ED) advised a Delhi courtroom that Congress leaders Sonia Gandhi and Rahul Gandhi took full management of Related Journals Restricted (AJL), the corporate that publishes the Nationwide Herald newspaper, by paying simply Rs 50 lakh, whereas the corporate’s actual property is price over Rs 2,000 crore.
The assertion was made by Further Solicitor Common (ASG) SV Raju earlier than Particular Choose (PC Act) Vishal Gogne at Delhi’s Rouse Avenue Courtroom.
The courtroom is at the moment listening to whether or not it ought to take official discover of the ED’s prosecution grievance within the Nationwide Herald cash laundering case.
ASG Raju knowledgeable the courtroom that AJL owns precious properties throughout a number of cities together with Delhi, Lucknow, Bhopal, Indore, Panchkula, and Patna.
He acknowledged that these properties have been initially given by the Central and State governments after 1947 for the aim of newspaper printing and publishing.
He mentioned that after Younger Indian, an organization managed by the Gandhi household, took over AJL, they declared that they’d not be persevering with with any type of newspaper publishing, together with the Nationwide Herald.
ASG Raju quoted this by saying,
“To take over your complete firm of Rs 2000 crores, they paid Rs 50 lakhs.”
He additionally claimed that after the takeover, people near Sonia and Rahul Gandhi have been made administrators of AJL, and fraudulent monetary transactions have been carried out to shift the corporate’s cash improperly.
The courtroom was advised that the case includes critical allegations, together with that the Congress get together had given a Rs 90-crore mortgage to AJL, which was later transferred to Younger Indian for under Rs 50 lakh.
Based on the ED, this resulted within the Gandhi household’s firm getting management over properties price greater than Rs 2,000 crore, with out paying a good quantity.
ASG Raju highlighted,
“AJL owns properties in Delhi, Lucknow, Bhopal, Indore, Panchkula, Patna and different locations, and all these properties have been supplied by the Central authorities and varied State governments after 1947 for newspaper printing and publishing.”
He additionally advised the courtroom that,
“Quickly after taking up AJL, Younger Indian (an entity managed by the Gandhis) declared that it might not take pleasure in any newspaper publishing together with the Nationwide Herald.”
In abstract, the ED believes that a big actual property asset owned by AJL was taken over at a particularly low price, by way of unfair and dishonest means.
The company has filed a prosecution grievance in opposition to Sonia Gandhi, Rahul Gandhi, Sam Pitroda, and others concerned.
The authorized difficulty started when former Union Minister Subramanian Swamy filed a personal grievance accusing Sonia Gandhi, Rahul Gandhi, Motilal Vora, Oscar Fernandes, Suman Dubey, Sam Pitroda, and Younger Indian of dishonest, legal conspiracy, breach of belief, and misusing property.
Background of the Case
The Nationwide Herald case revolves across the alleged misuse of funds and property by senior Congress leaders, together with Sonia Gandhi and Rahul Gandhi. The controversy started when the Congress get together gave a mortgage of Rs 90 crore to Related Journals Restricted (AJL), the corporate that initially printed the Nationwide Herald newspaper.
AJL had stopped publishing the paper years earlier however continued to personal precious actual property throughout India, which had been allotted to it by the federal government for press-related actions.
In 2010, a brand new firm named Younger Indian Pvt Ltd was included, with Sonia Gandhi and Rahul Gandhi holding majority shares.
AJL’s debt of Rs 90 crore was later assigned to Younger Indian for simply Rs 50 lakh, successfully giving Younger Indian management over all of AJL’s belongings, which have been price over Rs 2,000 crore.
This transaction raised critical questions on monetary irregularities and alleged misappropriation of belongings. In 2012, former Union Minister Subramanian Swamy filed a personal grievance, accusing the Gandhis and others of legal conspiracy, dishonest, and breach of belief.
The case was taken up for investigation underneath the Prevention of Cash Laundering Act (PMLA) by the Enforcement Directorate (ED), which claims the transaction was a deliberate try to achieve management of prime properties by way of illegal means.
Case Title:
Enforcement Directorate v. Younger Indian and Others
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