Court validates Associated Journals’ property seizure in money laundering case
The seizure of the property of Associated Journals Ltd (AJL), under the Prevention of Money Laundering Act (PMLA) last year, has been acknowledged as valid by the court (adjudicating authority).
In November 2023, the ED seized properties worth Rs 751.9 crore belonging to AJL and Young Indian, entities associated with the Congress, on charges of money laundering.
It had interrogated several individuals, including Congress leaders Sonia Gandhi, Rahul Gandhi, and others, in connection with this case.
On November 1, 2012, senior BJP leader Subramanian Swamy filed a private complaint in the court alleging that both Sonia Gandhi and Rahul Gandhi had committed fraud and land grabbing worth Rs 16 billion by acquiring a publicly limited company called Associated Journals Ltd (AJL) through their owned private company, Young Indian (YI).
The court had, on December 19, 2015, granted bail to the Gandhis and others in the case.
The AJL, the publisher of the National Herald Newspaper, founded under Jawaharlal Lal Nehru’s chairmanship, ceased operations in 2008 with a substantial unpaid debt of Rs 90 crore. The YI was incorporated on November 23, 2010, with a nominal paid-up capital of Rs 5 lakh, wherein Sonia Gandhi and Rahul Gandhi collectively owned 76 per cent of the shares.
In December 2010, YI resolved to ‘own’ the outstanding debt of AJL, which had obtained an interest-free loan from the Congress. Party leaders, including Sonia Gandhi and Rahul Gandhi, were instrumental in this decision. AJL’s board, including individuals from Congress leadership, transferred the entire share equity to YI in exchange for a consideration of Rs 50 lakh.
YI, in turn, wrote off the loan obtained from the party. Following this transaction, YI gained complete ownership of AJL, which possessed real estate assets estimated at Rs 5,000 crores, originally provided by various Central and state governments for newspaper printing and publishing purposes.
Despite the vast real estate holdings, YI, with 100 per cent equity ownership by Congress Party leaders, declared that it would not engage in publishing any newspapers, including the National Herald.
The National Herald House in New Delhi, a prime property, was rented out commercially, generating a monthly income of at least Rs 60 lakh for YI.
Metropolitan Magistrate of Patiala House Courts on June 26, 2014, established a prima facie case against the accused individuals under Sections 403 (Dishonest misappropriation of property), 406 (Criminal breach of trust), and 420 (Cheating and dishonestly inducing delivery of property) read with section 120B (Criminal conspiracy) of IPC.
