PMLA Adjudicating Authority confirms attachment of Rs 751 crore property of Congress-run AJL, Young India

The confirmation of the PMLA Adjudicating Authority came a day ago following detailed hearings on the property attachment order issued in November 2023 by the Directorate of Enforcement (ED), which is probing the case under the provisions of the Prevention of Money Laundering Act, 2002, considering a complaint, filed by Subramanian Swamy, against individuals including Congress leaders Sonia Gandhi, her son Rahul Gandhi, Motilal Vohra, Oscar Fernandes, Suman Dubey, Sam Pitroda, and Young Indian.

The complaint was duly acknowledged and acted upon by the learned metropolitan magistrate, Patiala House Court, as per an order dated June 26, 2014.

A Provisional Attachment Order (PAO) was issued on November 20, 2023, by the Deputy Director of Enforcement Directorate during the inquiry of the case in relation to the movable and immovable properties to the tune of Rs 7,51,91,28,140 under sub section (1) of section 5 of the PMLA for provisional attachment under the possession of the defendant.

"I therefore, hereby confirm the attachment of the property made under sub-section (1) of Section 5 of PMLA. I, therefore, order that the said attachment shall continue during pendency of the proceedings relating to any offence under the Prevention of Money Laundering Act, 2002 before the Special Court; and become final after an order of confiscation is passed under Sub-section (5) or sub-section (7) of section 8 of PMLA by the Special court," reads the order issued by the PMLA Adjudicating Authority on Wednesday.

As per a concise overview of the case based on the court's order, Associated Journals Limited (AJL), the publisher of the National Herald Newspaper, founded under the first Prime Minister of India Jawaharlal Nehru's chairmanship, ceased operations in 2008 with a substantial unpaid debt of Rs 90 crore.

It further mentioned that Young Indian Company (YI) was incorporated on November 23, 2010 with a nominal paid-up capital of Rs 5 lakh, wherein Sonia Gandhi and Rahul Gandhi collectively owned 76 per cent of the shares.

In December 2010, it continued, YI resolved to 'Own' the outstanding debt of AJL, which had obtained an interest-free loan from the Congress Party. "The Congress Party leaders, including Sonia Gandhi and Rahul Gandhi, were instrumental in this decision."

AJL's board, including individuals from Congress Party leadership, transferred the entire share equity to YI in exchange for a consideration of Rs 50 lakhs; and YI, in turn, wrote off the loan obtained from the party. "Following this transaction, YI gained complete ownership of AJL, which possessed real estate assets estimated at Rs 5,000 crores, originally provided by various Central and state governments for newspaper printing and publishing purposes."

Despite the vast real estate holdings, it said, YI, with 100 per cent equity ownership by Congress Party leaders, declared that it would not engage in publishing any newspapers, including the National Herald.

The National Herald House in New Delhi, a prime property, was rented out commercially, generating a monthly income of at least Rs 60 lakh for YI, it added.

It has been further placed on record that the learned metropolitan magistrate, Patiala House Courts, New Delhi, in an order dated June 26, 2014, established a prima facie case against the accused individuals under sections 403, 406, and 420 read with Section 120B of the Indian Penal Code, observed the adjucating authority.

It further pointed out that the nature of offences alleged includes: Criminal Breach of Trust - section 406 of IPC - against Congress Party leaders for advancing party funds as an interest free loan to AJL, engaged in commercial activities, and subsequently transferring the debt to YI without proper discharge of trust obligations; Criminal conspiracy - section 120B of IPC involving a pre-planned agreement between the accused to control public funds and assets by creating YI as a special purpose vehicle for acquiring assets of AJL.

Mentioning further offences, it states, there is "cheating and dishonestly inducing delivery of property--section 420 of the IPC--with the Congress Party's inducement of public contributions for commercial activities, defrauding contributors and the state exchequer by claiming tax exemptions; and dishonest misappropriation of property--section 403 of the IPC--transfer of AJL's equity to YI, causing wrongful loss to original shareholders and AJL itself, with revenue generated from AJL's properties being misappropriated by YI directors." (ANI)