Janata Party chief Subramanian Swamy today targeted Sonia Gandhi and Rahul Gandhi raising questions over acquisition of a company that published the now-defunct
National Herald newspaper to which Congress gave a loan of over Rs 90
Addressing a press conference here, he said Sonia and Rahul had floated a Section 25 company called 'Young Indian' each with a share holding of 38 per cent, which acquired Associated Journals, founded by late Jawaharlal Nehru, that published the
National Herald and Quami Awaz.
He said the deal is a fraud committed in order to grab the Herald House in
Delhi, that is located in a hub and which is valued at about Rs.1600 crores.
Swamy said Associated Journals obtained an unsecured loan of over Rs 90 crore from AICC which he claimed was illegal under Income Tax Act because a political party cannot give loans for commercial purposes.
He also alleged that the Young Indian wrote off the loans due to AICC for a mere Rs 50 lakh and by a board resolution, the Associate Journals is sold by transfer of shares to Young Indian, which is not a newspaper or journal producing company.
The deal, Swamy alleged, was to grab prized property like Herald House in Delhi and other properties of the Associated Journals in Delhi and Uttar
He demanded a joint probe by Company Affairs Ministry and CBI and a wrote a letter pressing his demand.
Congress was dismissive of Swamy's allegations, saying that there are some characters who utter "anything, anytime".
"In every society and country, you have some characters. The person you are referring might be one of them who could speak anything, anytime," AICC General Secretary Janardhan Dwivedi said.
BJP demanded an immediate probe into the allegations.
"The government should immediately order a probe into the allegations," senior BJP leader Balbir Punj said.
Significantly, Mr Swamy had levelled the same charges in a press conference in Ahmedabad on October 28.
Here is the full text of Subramanian Swamy's statement today:
1. Mrs. Sonia Gandhi and Rahul Gandhi had floated a Section 25
private company called Young Indian, and acquired the public limited
company, the Associated Journals Ltd., which is the owner of National
Herald and Quami Awaz Newspapers, and all high value real estate
property in Delhi and other places in Uttar Pradesh of the said company.
The deal is a sham, bogus, and a violation of several laws. It is a
fraud committed in order to grab the Herald House in Delhi, that is
located in a hub and which is valued at about Rs.1600 crores.
2. The first dubious fact of the AJ Company RoC details is that
Jawahar Lal Nehru, Indira, Feroze Gandhi, GD Birla and other like noted
deceased person, are shown as current shareholders! In fact 80 per cent
of the original shareholders are no more alive So too many of the
defunct firms, including several companies having dubious addresses in
Kolkata, are shown as shareholders of the Associated Journals Ltd.
3. The second dubious fact is the acquisition of the associated
Journals Ltld. Judging by documents filed with RoC it is wholly illegal.
On February 26, 2011, the Board of AJ Pvt. Ltd. passed a Resolution
approving that All India Congress Committee 9AICC) had loans to the
Company unsecured and for zero interest rate to extinguish the liability
of the company of more than Rs.90 crores. It is illegal for a
political party to give loans to any company. The Resolution also
resolved that in lieu of this deal with AICC, the Board decided to allot
all AJ's nine crore shares, of Rs.10 each to Young Indian, the private
company of Sonia Gandhi and Rahul Gandhi, where both together more than
three fourths of the total shares and fully control the said Young
4. The third dubious fact is that Young Indian filed statements
with the RoC disclosing that the shareholders meeting was held in Sonia
Gandhi's Government allotted 10, Janpath. This is violation of the law
since the 10, Janpath, New Delhi Government accommodation cannot be used
for commercial purposes and business.
5. The fourth dubious fact is that the Rs.90 crore liability of
The associated Journals was owned by Young Indian for a mere Rs.50
6. Thus the deal was to grab the Rs.1600 crore worth Herald House
and other properties of the National Herald/Quami Awaz in Delhi and in
different part of UP for a commitment to pay Rs.50 lakh to AICC for the
Rs.90 crores advanced as unsecured zero interest loan.
7. Therefore, I urge immediate institution of a SFIO/CBI probe
into this dubious stinking deal between Young Indian and The Associated
Journals as also the illegality of the AICC in giving a loan to a
private company in reckless cronyism since the AICC President is Ms.
Sonia Gandhi and General Secretary Rahul Gandhi who are also owners of
Young Indian, the beneficiary. More curiously, the associated Journals
Ltd.'s Chairman Shri Motilal Vore is also the Treasurer of the AICC!
8. In his election affidavit on assets and liabilities, Mr. Rahul
Gandhi had failed to inform that he owned 38 per cent share of a
company he had formed named Young Indian with his mother, Ms. Sonia
Gandhi, who also owned 38 per cent of the shares.
( SUBRAMANIAN SWAMY )