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Informist, Monday, Apr. 21, 2025

NEW DELHI – Slamming the Enforcement Directorate for filing a chargesheet against former Congress presidents Sonia Gandhi and Rahul Gandhi in the National Herald case, former finance minister P. Chidambaram on Monday questioned the offence as there were no proceeds of the crime for the central agency to initiate a probe under the Prevention of Money Laundering Act. As per the law, the central agency can only initiate a probe if there is money laundering, Chidambaram added.

"Where is the proceeds of crime? Where is the money? There must be proceeds of crime (for the agency to initiate probe under money laundering law). Where is the offence of money laundering," Chidambaram questioned. He also alleged political vendetta by the probe agency against the leaders of the Congress party.

The probe agency pressed charges against Sonia Gandhi, Rahul Gandhi, overseas Congress chief Sam Pitroda, the late Motilal Vohra--the party's former treasurer--the late Oscar Fernandes-–a former general secretary--Suman Dubey, and Young Indian Pvt. Ltd.

The case stems from the allegations of financial irregularity and misappropriation of funds pertaining to Young Indian's acquisition of the Congress-controlled Associated Journals Ltd. The Bharatiya Janata Party's former parliamentarian Subramanian Swamy had originally filed the complaint alleging that Young Indian had taken over the assets of Associated Journals in a "malicious" bid to acquire properties worth more than INR 20 billion.

Associated Journals publishes National Herald, which is now owned by Young Indian. The Gandhis are majority shareholders of Young Indian, with Sonia and Rahul each holding 38% stake.

The senior Congress leader said that Young Indian, established as not for profit in 2010, took over the INR 900 million loan advanced by the Congress party to Associated Journals after paying consideration of INR 5 million. Since the loan was irrecoverable, the two companies decided to convert it into equity, Chidambaram said. He also said that the Income Tax Department has valued the properties of Associated Journals at INR 4.13 billion and questioned the INR 20 billion figure.

"The Associated Journals Ltd. holds six immovable properties in India. The property in Lucknow alone is a freehold property. The other properties in Delhi, Panchkula, Mumbai, Patna and Indore are leasehold properties allotted by the government concerned with the condition that the property cannot be sold," Chidambaram said. He also stated that not a single rupee has been paid by the Young Indian Pvt. Ltd. to its directors or shareholders since corporation.  End

Reported by Kuldeep Singh

Edited by Deepshikha Bhardwaj

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