Slamming the ED chargesheet against Sonia and Rahul Gandhi, the Congress on Wednesday denied allegations of money laundering in the National Herald case and said no property of the newspaper’s holding firm, Associated Journals Ltd (AJL), was ever transferred to Young Indian Ltd, the non-profit that took on its debt in the form of equity.
There is “not even a whiff of a crime” and the case “is nothing but vendetta in legal disguise”, said Congress Rajya Sabha member Abhishek Singhvi at a press conference in New Delhi.
Singhvi went into the details of the “strange case”. He said that the Congress, whose ideology AJL promoted, gave it loans amid its financial struggles. “Decades later, that total amount reached `90 crore. To make it (the National Herald brand) debt-free, the loan of `90 crore was transferred to a new company, Young Indian. It was done in a way which is done across the country every day. The debt was converted into equity. AJL shares were issued to Young Indian, which became the shareholder of 90-95% of AJL. Young Indian had directors like Motilal Vohra, Oscar Fernandez, Sam Pitroda, Sonia Gandhi, Rahul Gandhi etc,” he said.
Singhvi said there was no movement of any asset or money, or any sale or purchase of property.
“Young Indian is a not-for-profit company under Section 8 of the Companies Act. Whatever earnings a company has it can be given out as dividend to its shareholders. This company can’t do that because it is prohibited under Section 8. There was no salary, perks… the company didn’t buy any property or sold any. This company can’t gain anything… when no property moved. Properties are still owned by AJL. Just that AJL shareholding is of Young India which has three or four directors who don’t get any money,” he said.
Singhvi asked where the money trail is, and said that the ED case is that money laundering was carried out by giving the majority shareholding to Young India.
“The allegation is that the directors of Young India — Gandhi family members and others — usurped these properties. Which director bought anything? Where is it?” asked Singhvi.
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The MP also alleged that the ED had filed the chargesheet as a deadline for filing it within a period of year was ending on April 9.
At the press conference, Congress communications head Jairam Ramesh said the case was “an attempt to distract from the economic hardship and people’s issues that we are facing”.
He added: “There are two persons who are the stage managers, and they have a criminal mindset.”
Meanwhile, Congress leaders and workers held protests in Delhi and state capitals across the country against the chargesheet.
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