Young Indian rented Herald House for Rs 60L despite no publishing plans
Despite having vast real estate holdings, Young Indian (YI), an entity with 100 per cent equity holding by Congress leadership, had declared that it will not engage in publishing any newspaper, including National Herald, according to Enforcement Directorate (ED) sources involved in the ongoing probe.
YI, formed in 2010, had acquired control of Associated Journals Limited (AJL), the original publisher of National Herald newspaper, the same year.
However, YI rented out the National Herald House, a prime property in central Delhi, generating a monthly income of around Rs 60 lakh, they informed.
The National Herald House is one of three properties attached by the Enforcement Directorate (ED) in November 2023 as part of the National Herald money laundering investigation. The agency recently issued notices seeking possession of the attached assets.
AJL, founded under the chairmanship of India’s first Prime Minister Jawaharlal Nehru’s, had ceased operations in 2008 with a substantial unpaid debt of Rs 90 crore.
YI, incorporated with a nominal paid-up capital of Rs 5 lakh on November 23, 2010, was created with 76 per cent of its shares held collectively by Congress leaders Sonia Gandhi and Rahul Gandhi. In December 2010, YI resolved to ‘own’ the outstanding debt of AJL, which had obtained an interest-free loan from the Congress party. Both Sonia and Rahul Gandhi and others, were instrumental in the decision, ED sources informed further.
Both the leaders have been named by ED in the chargesheet in the case, which was filed on April 15 before a special court.
ED sources said that AJL’s board, including individuals from Congress party leadership, transferred the entire share equity to YI in exchange for a consideration of Rs 50 lakh. In turn, YI wrote off AJL’s loan—thereby gaining control of AJL’s assets, estimated to be worth Rs 5,000 crore. These properties had originally been allotted by central and state governments for publishing-related activities, sources added.
On April 15, the ED had filed a prosecution complaint (chargesheet) in a special court before a special court against Sonia Gandhi, Rahul Gandhi, and Congress Overseas chief Sam Pitroda, marking the first time Sonia and Rahul Gandhi have been formally chargesheeted in the case. They have been listed as accused numbers 1 and 2.
The court has listed the case for hearing on April 25.
The ED had begun its investigation in the matter on the basis of a June 2014 order from Delhi’s Patiala House court based on a private complaint filed by the BJP’s Subramanian Swamy.
Swami had claimed a criminal conspiracy by prominent Congress leaders, including Sonia Gandhi, Rahul Gandhi and others, and a company, Young Indian Pvt Ltd, to allegedly launder money from the reported fraudulent takeover of properties belonging to AJL and valued at over Rs 2,000 crore.
The ED is investigating claims that AJL’s properties were acquired for just Rs 50 lakh, undervaluing their worth. Allegations also include the generation of bogus proceeds, such as fake donations and rent agreements worth crores, to launder money.
The probe agency alleges that the assets were further used to generate bogus proceeds of crime.
India