ANI
03 Jul 2025, 00:37 GMT+10
New Delhi [India], July 2 (ANI): While hearing the Directorate of Enforcement's (ED) arguments on a money laundering complaint in the National Herald case, Delhi's Rouse Avenue Court raised certain queries to the ED about the shareholding of Associated Journals Limited (AJL) and whether the Congress party was a victim, as it had given a loan to AJL.
Additional Solicitor General (ASG) SV Raju submitted that there was a conspiracy to siphon off the assets of AJL, a company with assets worth Rs 2000 crore, a fact known to Congress leaders.
Special Judge Vishal Gogne heard the arguments at length for nearly three hours and listed the matter for further hearing on July 3.
The ED filed a prosecution complaint (charge sheet) against seven persons: Congress leaders Sonia Gandhi, Rahul Gandhi, Suman Dubey, Sam Pitroda, Young Indian, Dotex, and Sunil Bhandari. The Congress provided a loan of Rs. 90.25 crore to AJL, which had no means to repay despite holding assets worth Rs. 2000 crores, ASG Raju submitted.
Raju alleged that the accused aimed to usurp AJL, with its Rs. 2000 crore assets, by creating Young Indian, a company controlled by the Gandhis. The ED argued that Young Indian acquired AJL for just Rs. 50 lakh in exchange for the Rs. 90 crore loan provided by the Congress.
The ED further stated that the accused firm, Dotex, gave a Rs. 1 crore loan to Young Indian, out of which Rs. 50 lakh was paid to the All India Congress Committee (AICC). Consequently, Young Indian became the owner of AJL for Rs. 50 lakh.
ASG Raju argued that a company without even Rs. 5 lakh became the owner of a company with Rs. 2000 crore in assets, emphasising the absurdity of the transaction. Despite AJL's Rs. 2000 crore assets, it struggled to manage daily affairs. Raju argued that any prudent person would have sold assets to repay the Rs. 90 crore loan, which was insignificant compared to the company's asset value.
The ASG alleged that the AICC conspired to usurp AJL's assets through Young Indian, created to siphon off Rs. 2000 crore in exchange for the Rs. 90 crore loan. The Additional Solicitor General (ASG) S.V. Raju questioned why the All India Congress Committee (AICC) gave another loan to Associated Journals Limited (AJL) when the company was unable to repay the earlier loan, asking why a prudent person would do this.
The Enforcement Directorate (ED) alleged that Sonia Gandhi and Rahul Gandhi wanted to take over AJL, a company with assets worth Rs. 2000 crores.
ASG Raju argued that Dotex gave a Rs. 1 crore loan to Young Indian, a company in shambles, without any guarantee. All this money came in when Rahul Gandhi (RG) and Sonia Gandhi (SG) entered the fray.
During the hearing, the court asked the ED to clarify whether donations, loans, rent, etc., are part of the proceeds of crime.
ASG Raju stated that they are proceeds of crime, emphasising, 'It is nothing but proceeds of crime.' ASG Raju also referred to a letter written by the Director of AJL to AICC, stating that they were unable to repay the loan as the publication was suspended and had no regular income. Two months after this letter, Young Indian was created. The ED said that after the appointment of Rahul Gandhi, Young Indian wrote a letter to AJL to repay the loan or convert it into equity. It was a loss-incurring company to the tune of Rs. 70 lakh. AICC told Young Indian to give Rs. 50 lakh, and in return, they would get Rs. 90 crores. It did not have a capital of Rs. 50 lakh, ASG argued.
The ASG submitted that they (the accused) had shares in Young Indian. There was a paper transaction of shares, not a genuine one. It was submitted that Rahul Gandhi and Sonia Gandhi were beneficiaries of Young Indian. The four persons--Sonia Gandhi, Rahul Gandhi, Suman Dubey, and Sam Pitroda--were key managerial personnel in Young Indian as per their own audit report. Sonia Gandhi and Rahul Gandhi had 38 per cent shares each in Young Indian.
The court queried what was wrong with acquiring a company. ASG submitted that if you want to acquire, it should be done at market price, not for peanuts. The company AJL, having assets of Rs. 2000 crores, was taken over for the loan of Rs. 90 crores. It is fraud. It was not a genuine transaction, ASG submitted.
ASG Raju said that AJL was not acquired by the Congress but by Young Indian. It was a conspiracy. Congress did not charge interest or require collateral. The Rs. 90 crores loan was sold for Rs. 50 lakh, ASG said.
'It is a conspiracy at the behest of Congress leaders Sonia Gandhi and Rahul Gandhi to take away the assets of Rs. 2000 crores,' ASG alleged.
The court asked whether Congress was a victim. The ASG submitted that Congress took a hit of Rs. 89 crore to benefit Young Indian. AICC leaders and others defrauded the party of the loan of Rs. 90 crore.
The ASG argued that the Gandhis were the beneficiaries in Young Indian. They held 76 per cent of the shares. After the deaths of Motilal Vohra and Oscar Fernandes, total control came into the hands of Sonia Gandhi and Rahul Gandhi. It was a company of the Gandhis. He said that the borrower was saying they didn't have the money to repay the loan, yet the lender still gave a donation. No prudent person would do this.
The court raised a query: 'What if Congress wrote off the loan? Banks do it all the time. Congress wrote off the loan, and Congress is not an accused. How does this distinguish from other companies? How is this such a peculiarity that the ED wanted to investigate? PSUs are writing off crores of rupees.'
ASG Raju said that in the case of banks, they don't have assets, so they have to lend. It is in that case that they enter into a compromise with the borrower. In this case, assets of Rs. 2000 crores were available. The assets have value, even if they are not generating income.
ASG Raju said that for giving Rs. 90 crores, you (the accused) are getting assets of Rs. 2000 crore; it is fraud. To get the assets of Rs. 2000 crore, you entered into the conspiracy, the ASG argued. Young Indian was formed for the purpose of committing fraud, he added.
ASG Raju said that the transaction of purchasing the loan by Young Indian from AJL was a sham transaction, as it was known that AJL does not have any income, and Young Indian was not going to get anything out of it.
The court asked why Congress was not a shareholder in AJL and directed the ED to verify this tomorrow. (ANI)
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