Swamy moves poll panel to derecognise Congress

Janata Party chief Subramanian Swamy has alleged that the Congress violated Income Tax laws by entering into a commercial deal. File photo

Janata Party chief Subramanian Swamy has alleged that the Congress violated Income Tax laws by entering into a commercial deal. File photo   | Photo Credit: V_Sudershan

Janata Party chief Subramanian Swamy on Saturday moved the Election Commission to derecognise the Congress, alleging the party violated laws by providing a Rs. 90 crore loan to a company that published the now-defunct National Herald newspaper.

The Congress on its part adopted a combative approach over the controversy on the Associated Journals issue, saying it has discharged its “political dharma” and that it was ready to contest any challenge in any fora for giving loan to support the newspaper.

Tjhe BJP hoped the EC will take cognisance of Mr. Swamy’s plea and also refused to buy the Congress argument that the loan was paid to propagate its ideology, alleging the deal appears to have been done more for the real estate value involved and “inadvertent” money laundering.

In a letter to Election Commission, Mr. Swamy said the Congress has prima facie committed an offence under electoral law as well as Income Tax law for which it is necessary to hold hearings and decide on derecognising the party.

His petition to the Commission comes as a follow up to his charges against Congress president Sonia Gandhi and Rahul Gandhi over acquisition of Associated Journals that published the newspaper to which Congress gave a loan of over Rs. 90 crore.

He had said Associated Journals obtained an unsecured loan of over Rs. 90 crore from the AICC which he claimed was illegal under Income Tax Act because a political party cannot give loans for commercial purposes.

“The written admission by senior Congress leader and spokesperson Janardhan Dwivedi in his press release dated November two admitted that Congress has loaned (a sum of more than Rs 90 crores) to a company incorporated under Section 3 of Companies Act, 1956 by name Associated Journals Pvt Ltd.

“This loan is in violation of the Guidelines and Rules that has to be mandatorily followed by political parties for registration as well as recognition. Section 29A to C of RPA and Section 13A of IT Act do not make any provision for any political party to extend loans to companies with or without interest,” Mr. Swamy said in the letter.

A letter from the Editor

Dear reader,

We have been keeping you up-to-date with information on the developments in India and the world that have a bearing on our health and wellbeing, our lives and livelihoods, during these difficult times. To enable wide dissemination of news that is in public interest, we have increased the number of articles that can be read free, and extended free trial periods. However, we have a request for those who can afford to subscribe: please do. As we fight disinformation and misinformation, and keep apace with the happenings, we need to commit greater resources to news gathering operations. We promise to deliver quality journalism that stays away from vested interest and political propaganda.

Support Quality Journalism
Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Jun 3, 2020 9:27:18 PM |

Next Story