ED provisionally seizes Rs751.9 crore assets of Young India and AJL

Enforcement Directorate (ED) on Tuesday provisionally attached assets worth Rs751.9 crore of Young India and Associated General Limited (AJL) which are linked to Congress mouthpiece National Herald.

The seizure has been made in connection with a money laundering case investigated under the Prevention of Money Laundering Act (PMLA) 2002.

The National Herald case was first filed by the BJP leader Subramanian Swamy in 2012. After this, ED had registered a money laundering case against the company in August 2014. Sonia Gandhi, Rahul Gandhi and Congress's Motilal Vora, Oscar Fernandez, Sam Pitroda and Suman Dubey were accused in the case.

The ED sent summons to Sonia and Rahul in the case related to the National Herald newspaper. This paper was started in 1938 by the former PM Jawaharlal Nehru along with five thousand freedom fighters. This newspaper was published by AJL.

AJL published this newspaper in three languages, 'National Herald' in English, 'Navjeevan' in Hindi and 'Qaumi Awaaz' in Urdu. Later, the newspaper suffered losses and was closed in 2008 despite a loan of Rs 90 crore from the Congress.

A new organization called Young Indian Private Limited (YIL) was formed in 2008. It overtook AJL and continued publishing the National Herald. Sonia Gandhi and Rahul Gandhi were on the Board of Directors of YIL. Sonia and Rahul's stake in YIL was 76% and the remaining 24% was held by Vora and Fernandez.

Vora died in 2020 and Fernandez in 2021. After this, Congress transferred a Rs90 crore loan of AJL to YIL.

In return for repaying Congress's loan, AJL gave 9 crore shares to Young Indian. With these 9 crore shares, Young Indian acquired 99% shares of AJL. After this, Congress waived off AJL's loan of Rs90 crore.

Swamy alleged that the Congress transferred the right to recover a loan of Rs 90 crore from AJL, which runs National Herald, to Young Indian Limited and Young Indian Limited took over AJL's assets worth Rs 2,000 crore.

Swamy alleged that Rahul-Sonia's Young Indian Limited paid Rs 50 lakh to repay the loan of Rs90 crore owed by Congress on AJL company, which runs National Herald, after which Congress paid the remaining Rs 89.50 crore from AJL. Loan waived off.

He also alleged that the YIL got the right to acquire the properties of National Herald, including its building located in a prime location in Delhi, worth about Rs 2,000 crore, to recover its loan.

It was said that the assets of Young Indian Limited, which was formed in 2010 with Rs 5 lakh, have increased to Rs 800 crore in a few years.

On the other hand, the Income Tax Department says that Rahul Gandhi earned Rs 154 crore from shares in Young Indian Limited. The Income Tax Department has already issued a notice to Young Indian Limited to pay tax of Rs 249.15 crore for 2011-12.

Congress leader Abhishek Manu Singhvi however rejected the charges and said that there was no case of money laundering.

Singhvi also claimed that AJL still has rights over all the properties and printing and publisher business of the National Herald as before. The only change is that the shares of AJL are owned by Young Indian, but Young Indian cannot use this money in any way. It can neither pay dividends nor earn profits.

Congress also alleged that the ED action was harassment and an attempt to scare the party at a time when assembly election in Rajasthan is round the corner.