Essential ingredients of law on cheating and dishonest inducement were not met and there was no violation of law or breach of trust in the acquisition of Associated Journals (AJL), publisher of now defunct National Herald, by Young India Limited, whose major shareholders are Congress leaders Sonia Gandhi and Rahul Gandhi, the Delhi High Court was told on Thursday.
Arguing on a petition challenging the trial court’s order of June 26, 2014, by which summons were issued to Ms. Gandhi, Mr. Gandhi, and others, senior advocates Kapil Sibal and Abhishek Manu Singhvi said a commercial transaction between the two companies was sought to be portrayed as an illegal deal and criminal act, which it was not.
The summons in the case were issued by a Metropolitan Magistrate’s court on a complaint filed by BJP leader Subramanian Swamy. Others summoned to appear before the court were Motilal Vora, Oscar Fernandes, Suman Dubey and Sam Pitroda.
The two counsels contended that Dr. Swamy had no locus standi to file a complaint of breach of trust, as he was not a victim. Mr. Sibal, appearing for Ms. Gandhi, said the money loaned to AJL by the Congress was the money it had received as donations, and the action served the objectives of the party. This debt was later assigned to AJL.
Justice Sunil Gaur, who was hearing the arguments, asked whether the transaction between the two companies was purely a commercial one. “How a political party behaves is everyone’s concern. It is precisely an act of a political party which is under the scanner here,” he said.
Mr. Singhvi, appearing for Mr. Gandhi, said though there was a change of shareholding when Young India Limited was assigned the debt, there was no change in ownership of its assets. He said Mr. Swamy was not an ‘identified victim’ of cheating, which was a necessary condition to prove the charge.
The court posted the matter for further hearing on Friday.
Justice Sunil Gaur, who was hearing the arguments, asked whether the transaction between the two companies was purely a commercial one
