Senior Congress leader Rahul Gandhi has been facing interrogation by the Enforcement Directorate (ED) in connection with a money laundering case related to the National Herald newspaper. The Congress MP was interrogated for over 10 hours by the probe agency on the first day (June 13) of questioning. After this, he was asked to rejoin the investigation on June 14 and June 15 as well.
Meanwhile, Congress leaders and workers have been protesting against the questioning of Rahul Gandhi by the ED. Several senior Congress leaders along with many party workers are being detained every day for staging protests and marches in support of the Gandhi family.
According to sources, Rahul Gandhi was questioned by two ED assistant directors concerning investments made by his company Young Indian Ltd in the National Herald.
He was also questioned about his Young India partnership, other shareholders, personal bank accounts in India and overseas, movable and immovable assets, and other pertinent issues.
Congress interim president and Rahul Gandhi's mother Sonia Gandhi has also been summoned by the ED to appear before the agency on June 23 in connection with the National Herald case.
Notably, Sonia Gandhi was supposed to appear on June 8. She, however, tested positive for Covid-19 after which the probe agency issued a fresh summon to the Congress chief.
She is currently admitted to Ganga Ram Hospital due to Covid-related issues and her health condition is said to be stable.
The case involves allegations of financial irregularities during the acquisition of Associated Journals Limited (AJL), which published National Herald newspaper, by the Gandhi-owned Young Indian Limited in 2010.
Apart from the Gandhi family, Motilal Vora, Oscar Fernandes, Suman Dubey and Sam Pitroda are among the accused in the case.
The National Herald newspaper was started by India's first prime minister and Rahul Gandhi's great grandfather, Jawaharlal Nehru, in 1938. Associated Journals Limited (AJL), which was founded in 1937 with 5,000 other freedom fighters as shareholders, published the newspaper.
The National Herald became associated with India's freedom struggle after being shaped by some of the country's most influential people, earning it the status of 'country's great nationalist newspaper'. The British authorities, however, criticised the newspaper's fierce and incisive editorial style and banned it in 1942, forcing the daily to close down. But, three years later, the paper restarted its operations.
Later in 1947, when India won independence and Nehru took over as the Prime Minister, he resigned as chairman of the board of the newspaper. Congress, on the other hand, continued to play a substantial role in shaping the newspaper's ideology.
Eventually, the National Herald newspaper went on to become one of the leading English dailies under the supervision of some of India's finest journalists; it, however, continued to be funded by Congress.
The newspaper was shut down for the second time in 2008 due to financial constraints. It was relaunched as a digital publication in 2016.
According to estimates, the National Herald owned properties worth over Rs 2,000 crore in Delhi, Lucknow, and Mumbai. After suffering heavy losses, the National Herald suspended operations, leading Congress to make a proposal to revive the newspaper.
Congress provided a Rs 90 crore interest-free loan from the party fund for this purpose.
Congress, in 2010, assigned the AJL debt to its newly-founded Young Indian Ltd (YIL). YIL, a private company, was set up in November 2010. Sonia Gandhi and her son Rahul together hold a majority share of 76% in the company and the remaining 24% was held by Congress leaders Motilal Vora and Oscar Fernandes. Since AJL was unable to repay the debt, its whole stake was transferred for Rs 50 lakh to the Gandhi-owned YIL.
Following the transfer of shareholdings, BJP MP Subramanian Swamy filed a case in a trial court against the Gandhis in 2012. Swamy challenged how Congress took over AJL, a company with over 1,000 stockholders and prime real estate worth over Rs 2,000 crore, for just Rs 50 lakh.
He further accused Congress president Sonia, her son Rahul and others of fraud by getting the authority to recover Rs 90.25 crore debt that AJL originally owed to the party. Swamy has claimed that Gandhis committed fraud to "take over" assets worth millions in a "malicious" manner.
The BJP leader also challenged how Congress gave money to AJL from the party fund, despite the fact that political parties are not allowed to lend money for commercial purposes. Responding to this, Congress had alleged that it did not gain commercially from lending funds to AJL.
Congress called it "a strange case of alleged money laundering without any money," while accusing the ruling Bharatiya Janata Party (BJP) of "political vendetta".
The party further says that Congress will "not be cowed down" and will "fight it out".
According to the party, Congress helped Herald publisher AJL when it fell into financial hardship because it believed in its historical legacy. Over time, Congress loaned around 900 million rupees to the AJL.
The party further says that AJL became debt-free in 2010 when it swapped its debt for equity and transferred the shares to the newly formed Young India Private Limited.
According to Congress, Young India is a "not-for-profit company," and no profits have been given to its shareholders or directors.
It claims that the AJL "continues to remain the owner, printer, and publisher of National Herald and that there is no change or transfer of property."
2014: Metropolitan Magistrate Gomati Manocha issued summons to all the accused in the case, including Sonia and Rahul Gandhi.
The magistrate stated that the complainant had established a prima facie case against the accused under Sections 403 (Dishonest Misappropriation of Property), 406 (Criminal Breach of Trust) and 420 (Cheating) read with 120B (Criminal Conspiracy) of the IPC.
2014: Enforcement Directorate initiated the probe to find out if there was any money laundering.
2015: Patiala house court grants bail to Sonia and Rahul Gandhi in the case.
2016: Supreme Court refuses to quash proceedings against the accused.
2019: ED attaches National Herald properties worth Rs 16.38 crore in Mumbai.
2022: The ED continues its probe into the shareholding pattern, financial transactions and role of the Young Indian and AJL promoters.
After a trial court took cognisance of an Income Tax Department probe against Young Indian Pvt Ltd based on Swamy's allegation, the agency also registered a new case under the criminal provisions of the PMLA.
It has now summoned Sonia and Rahul Gandhi.
Congress described the ongoing interrogation of Gandhi family as a "political vendetta," as it kicked off its ‘satyagraha’ against the "misuse of investigating agencies by the Centre". The ruling BJP, on the other hand, said it was a case of financial wrongdoing.
Is it a political vendetta or not? Yes, it is.
The truth is that such shenanigans are routinely used by a host of politicians and business executives, and they are routinely let off the hook in the name of "reasonable consideration."
Only when there is a political vendetta involved, and one politician goes for the jugular of another, and the 'victim' is arbitrarily held accountable before the law.
But, does it even matter to you, a common man? Again, yes, it does.
Congress is India’s main opposition party and such a vehement attack against it is likely to throw the entire polity into disarray.
To be brief and to the point, Congress, which has ruled India for the majority of the time since independence, is dying. As party leaders devise strategies to revive the grand old party, Congress is finding it difficult to breathe.
Furthermore, by attacking Sonia Gandhi, the leader of India's main opposition party, the BJP has made it clear that it intends to stay in the race for a long time, with no strong opposition even near the finish line.
And, "In a democracy, the opposition is not only tolerated as constitutional but must be maintained because it is indispensable," says Walter Lippmann
