new DElhi, Nov 22
The Enforcement Direc-torate (ED) said Tuesday it had issued an order to provisionally attach properties worth Rs 751.9 crore in a money-laundering case against Young Indian and the Associated Journals Ltd.
The Young Indian, tied to the Gandhi family, had been under the ED scanner over charges of acquiring the AJL, publisher of the National Herald newspaper, and its assets for a “pittance” against an alleged loan extended by the Congress.
Responding to the ED announcement, the Congress targeted the BJP, saying it “reflects their desperation to divert attention from certain defeat in the ongoing elections in each state”.
A spokesperson for the ED said, “Investigation has revealed that M/s Associated Journals Ltd (AJL) is in possession of proceeds of crime in the form of immovable properties spread across many cities of India such as Delhi, Mumbai and Lucknow to the tune of Rs 661.69 crore and M/s Young Indian (YI) is in possession of proceeds of crime to the tune of Rs 90.21 crore in the form of investment in equity shares of AJL.”
The ED initiated the money-laundering investigation after a Delhi court took cognizance of a private complaint dated June 26, 2014.
“The Hon’ble Court held that seven accused persons including M/s Young India, prima facie committed offences of criminal breach of trust under IPC Section 406 (breach of trust) 420 (cheating), 403 (dishonest misappropriation of property) and 120-B (criminal conspiracy).
The Hon’ble Court held that the accused persons hatched a criminal conspiracy to acquire properties worth hundreds of crores of AJL through a special purpose vehicle, M/s Young Indian,” the spokesperson said.
According to the ED, M/s AJL was given land on concessional rates in various cities of India for the purpose of publishing newspapers.
“AJL closed its publishing operations in 2008 and started using the properties for commercial purposes. AJL had to repay a loan of Rs 90.21 crore to All India Congress Committee (AICC).
However, AICC treated the loan of Rs 90.21 crore as non-recoverable from AJL and sold it for Rs 50 lakh to a newly incorporated company M/s Young Indian without any source of income to pay even Rs 50 lakh.
By their action, the shareholders of AJL as well as donors of Congress party were cheated by the office bearers of AJL and Congress party,” the spokesperson said.
“Investigation has revealed that after purchasing the loan of Rs 90.21 crore from AICC, YI demanded either repayment of loan or allotment of equity shares of AJL to it. AJL held an Extraordinary General Meeting (EGM) and passed a resolution to increase share capital and issue fresh shares worth Rs 90.21 crore to YI.
With this fresh allotment of shares, shareholding of more than 1000 shareholders was reduced to a mere 1 percent and AJL became a subsidiary company of YI. YI also took control over properties of AJL,” the ED spokesperson said.
Congress president Mallikarjun Kharge, in a post on X, said, “Reports of attachment of AJL’s properties by the Enforcement Directorate are a clear indication of the BJP’s panic in the ongoing elections.”
“Staring at defeat in Chhattisgarh, Madhya Pradesh, Rajasthan, Telangana and Mizoram, the BJP Govt feels compelled to misuse its agencies,” he said.
AICC spokesperson Abhishek Singhvi said, “Reports of attachment of AJL properties by ED reflects their desperation to divert attention from certain defeat in the ongoing elections in each state.”
“PMLA action can only be consequential to some predicate or main offence. There is no transfer of any immovable property. There is no movement of money. There are no proceeds of crime. Indeed, there is no complainant who claims to have been cheated: not a single one!! This is a prefabricated structure of deceit, lies and falsehood, of, by and for the BJP to divert, distract and digress in the middle of elections. No BJP coalition partner – CBI, ED or IT – can prevent certain impending defeat of the BJP,” Singhvi said.
