Party admits it has extended an interest-free loan to ailing Associated Journals
The Congress said late on Friday evening that it intended to revive the newspaper that was run by Associated Journals Limited – a reference to National Herald, the paper started by Jawaharlal Nehru in 1938 — and admitted that the party had extended an interest-free loan to the ailing company.
“The Indian National Congress,” party general secretary and media chairperson Janardan Dwivedi said, “has done its duty in supporting The Associated Journals Limited to help initiate a process to bring the newspaper back to health in compliance with the laws of the land.”
He also acknowledged that this support was extended by the Congress “in the form of interest-free loans from which no commercial profit has accrued to the Indian National Congress.” Party sources said it was not known whether the paper would be revived as National Herald or given a new name.
Mr. Dwivedi, interestingly, made no reference to Young Indian, the company that Janata Party chief Subramaniam Swamy has alleged was formed through the purchase of Associated Journals, in his statement.
This was the first bit of clarity after 24 hours of conflicting statements, and silence on the part of those at the centre of the controversy.
On Thursday, Mr. Gandhi’s office threatened legal action against Dr. Swamy for accusing Congress president Sonia Gandhi and her son of illegally purchasing Associated Journals to gain ownership over the land it held across the country. Less than a day later, at the official Congress briefing, the party challenged Dr. Swamy to prove his allegations in a court of law.
“If Swamy has the guts, he should sue Rahul Gandhi and Sonia Gandhi,” party spokesperson P.C. Chacko said, adding, “It is for those who make allegations to prove the charges. If there is a violation, let them take it to court.”
Meanwhile, shortly after Mr. Dwivedi’s “clarification,” another party spokesperson Sandeep Dikshit parsed the statement: “The Associated Journals was in dire straits. Whatever Dr. Swamy may say,” Mr. Dikshit said, “the Associated Journals was a companion organisation of the Congress, and it is the party’s duty to revive the institution and the newspapers under it.”
Responding to Dr. Swamy’s allegation that the Congress’ extending an interest-free loan to acquire Associated Journals for Young Indian violated the Income Tax Act, as political parties received tax exemption, senior Congress sources told The Hindu that the Rs. 90-crore loan was in compliance both with the IT Act as well as the Representation of People Act: “There are strict accounting rules about inflows,” he said, “but there is nothing on how you spend it.”
Meanwhile, what is known thus far is that Young Indian, according to the Ministry of Corporate Affairs website, was formed on November 23, 2010 and registered under Section 25 of the Companies Act, 1956. It lists its address as 5A, Herald House, Bahadur Shah Zafar Marg, New Delhi, the office of the now defunct National Herald. While Ms. Gandhi and Mr. Gandhi hold 76 per cent stake in the new venture, the remaining shares are owned by Congress treasurer Motilal Vora, who is also the chairman-cum-managing director of Associated Journals Limited, and party general secretary Oscar Fernandes. Veteran journalist Suman Dubey has been designated as managing committee member in the new company, while National Knowledge Commission Chairman Sam Pitroda too is a member.
Meanwhile, documents filed by the Registrar of Companies point out that Young Indian is “engaged in activities to inculcate in the mind of India’s youth commitment to the ideal of a democratic and secular society and provides for application of its profits or income in pursuit thereof.”
Keywords: Subramanian Swamy charge, Rahul Gandhi, Sonia Gandhi, Young Indian, Congress, National Herald
We might need to put entire Congress behind bars after their term and hang some of them for criminal offense and still denying.
Now every business house can approach Congress Party ( Sonia Gandhi) for a loan. I think, the first eligible person to get the loan is, Vijay Malya of King Fisher Airlines!! It is better, let Sonia Gandhi convert Congress as finance company!!
Starting from the 2G scam, the Central Govt has faced a multitude of scams and more worms are coming out , on daily basis. But what is the end result ? The 2G scam seems to have already died a natural death. Courts are silent, the prosecutors are silent, the opposition is silent, and the accused have been resurrected and even rewarded by the Congress Government. In the same manner, the Commonwealth Games scam, Robert Vadhra issue, Salman Khurshid’s mini scam, Ghadkari’s business scam, Maharashtra’s irrigation scam, will all be buried by the joint efforts of the accused and those in the Government and Law enforcing agencies, who abet them. Politicians and officials will continue their loot and the common man will continue to suffer. It will be business as usual for everyone.
Amen
Hey come on guys and gals,, all of us vote for the great youthful chief in next election. Bharat Mata ki Jai ho...let the hooliganism, goondaism, vandalism, corruptionism, scamism and all ism's become the greatest treasures of Bharat. Jai hoooo
We now see the re-emergence of Zamindari System posing grave challenges
to our economy, and democracy !
Bribery, commissions on deals including defence have started from Jagjivanjee's days when Jaguar planes were procured for Airforce.The OFFICIAL SECRETS ACT have given these people good cover to get the full facts to open domain.
Could The Hindu or Arvjriwal get to the bottom of this. Interesting that the congress now wants Subramanium Swami to sue instead of the previous threats of a defamation suit frl Gandhi's office. Let the truth come out. Looks definitely like a scam of enormous proportions.
It is a sordid story. In Lucknow, where the National Herald was started,together with Qaumi Awaz in Urdu and a sister journal in Hindi, they took over a fine old building in a most prime area called Qaisar Bagh. They ran to the ground the Hindi and Urdu papers, using their newsprint quotas for financial gain. I now forget the name of the man who did it on behalf of the family then; he was very big one time, and then pushed to the sidelines when his usefulness ended. I was close to the people who ran the Urdu journal, and saw how the Delhi bosses did not let it survive despite the fact of its quality and popularity. The bosses were more interested in the real estate, and the money that could be made from it.
Well, that means Congress has no guts to probe the allegations. To dig out evidences from the complex corrupt mafia web is impossible for any individuals. Only probe by competent agencies would give a meaningful result.
Everything said and done, The Gandhis can sell The assets so aquired whenever they want to, at their market price.They may even offer to repay the 90 crores to Congress.But they can keep the extra income from the sale in their bank accounts, Indian if sold to an indian company and foreign, if sold otherwise.
great deal indeed.
It is important to cut across the noise and focus on the issue. Cong.
HAS given loan is now acknowledged by them. This is now confirmed
data. Whether they have done anything wrong or not, they are no one to
pronounce. It will be for court to judge. Further, in light of above
acceptance by Cong. will they now apologise to the nation and Dr Swamy
for having unleashed a barrage of subterfuge. Almost anyone and
everyone in Cong. seemed to have a megaphone in hand and crying hoarse
how their royalty is not at fault and how bad Swamy was. Actually
saying something against the royalty is like a red cloth for all these
bulls in Cong. They start charging without thinking. And imagine some
of them are Ministers. What a shame and what an incompetent governance
we as a nation have to suffer.
The current ownership of the defunct newspaper and its assets is not
clear. If a private company is formed to purchase the assets with an
interest-free loan from the Congress Party, it is a misuse of public
funds. If the Congress Party wants to run a newspaper, why can't it do
so without a private company owning it?
In my opinion, opaque running of political parties are at the heart of
the ailments of our democracy. We need democracy and accountability in
our political parties. When tax exemptions are provided, public lands
are allotted at a pittance, the political parties cannot claim that
they are not accountable to the people. It is high time that periodic
democratic elections supervised by the Election Commission is made
mandatory for all office bearers in political parties. Their accounts
must be filed with the election commission every quarter, and audited
by the CAG.
Political parties must cease to be tools to vest power in a few
individuals.
Meanwhile, documents filed by the Registrar of Companies point out that Young Indian is “engaged in activities to inculcate in the mind of India’s youth commitment to the ideal of a democratic and secular society and provides for application of its profits or income in pursuit thereof.” >>>
This merely is high sounding rhetoric to "run a patronage system by the owners of Young Indian, Sonia and Rahul Gandhi using COngress party money".
The party could have not this activity without gifting the assets to a private comapny run by a selected few.
Real value of assets of AJPL allegedly between Rs 1,000 - 1,600 Crore are many times more than its book value because land was given to AJPL (being news paper publishing company) at very nominal rate by Govt and building was constructed mainly out of contribution from public. AJPL cannot be sold to 'Young Indian' because (i)- AJPL cannot transfer burden of Rs 90 Crore loan from AICC to 'Young Indian' without AICC approval. If AICC approval is there then it is illegal because this tantamount giving loan by ICC to 'Young Indian' and which is not a news paper publishing company (ii)- It tantamount allowing 'Young Indian' to acquire assets of Rs 1,000 - 1600 Crore with Rs 50 Lacs only and (iii)- Because AICC, AJPL and 'Young Indian' all the three are owned / controlled by Sonia and Rahul Gandhi hence this AICC loan and selling of AJPL to 'Young Indian' tantamount to some thing like inside trading as was done in USA by Rajat Gupta for which he has gone to jail for 2 years
It is becoming increasingly difficult for ordinary folks to meet both ends despite hard work but political parties in one form or other collect huge money from public, corporates and spend as they wish with utter irresponsibility. Is this called the great establishment called democracy which we have inherited from British? Bad days have come for all insincere politicians in India who act as 'servants of people' but indeed contrary.
Let's look at this for a moment. JL Nehru starts a company (that
prints out news-papers) - then this person becomes the PM - and then
the *govt* grants land (at concessional rate) for the news-papers to
build - fast-forward a few decades - the papers are taking loses - the
*building* is purchased by "Young Indian" - and it's rented out back
to the govt - for a monthly rent of INR 30 lakhs. Hmmm.. Is there any
"sane" person in India? Whoever received that rent actually took land
from the govt at a concessional rate & then rented out the building
back to the govt. If this is LEGAL - I say build statues for Harshad
Mehta (& Bernie Madoff) already.
.
Making taxation voluntary will instantly solve a majority of these
problems - because then, MY MONEY will be SPENT THE WAY *I* want to.
Guess - that's just too much to ask - because I'm still only a slave.
.
MN (born & raised in Chennai - now in L.A California).
Mr. Swamy was the person who exposed 2G scam, went to court and got the
SC dictate for CBI inquiry, rest is history now. Outcome of CBI inquiry
is a different story but finally "Mango people" AKA "Aam Aaadmi" are
aware of what is and how huge the corruption is...
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