National Herald ruckus in Parliament: Here is all you need to know about the case

Congress MPs have protested against “vendetta politics”
National Herald ruckus in Parliament:  Here is all you need to know about the case
National Herald ruckus in Parliament: Here is all you need to know about the case
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With the National Herald case being the latest contentious topic in the never-ending tussle between the current and former ruling parties of the country, here is all you need to know about the case.

With both the Houses of Parliament being adjourned on Tuesday, Congress MPs have protested against “vendetta politics” on the part of the BJP after a Delhi court on Tuesday directed Sonia and Rahul Gandhi to appear before it onDecember 19. 

The adjournment of Parliament assumes significance in the wake of the crucial ‘Goods and Services Tax Bill’ still awaiting approval from both Houses. 

However, the top brass of the Congress party has approached the Supreme Court seeking exemption for its top leaders to appear in court.


Following a complaint filed by BJP leader Subramanian Swamy in 2012, a court in Delhi issued summons to Sonia and Rahul Gandhi on July 25 earlier this year for misappropriation of funds in relation to the National Herald newspaper that was shut down some years ago.

Metropolitan magistrate Gomati Manocha, while issuing the summons, said, “I have found prima facie evidence against all the accused.”

Swamy approached the court accusing Sonia Gandhi and Rahul Gandhi of grabbing assets of a public limited company by floating a private company and using Congress party’ s funds. As per Income Tax Act, political parties are barred from funding business operations.

The case involves two companies, the Congress party and the real estate.

Associated Journals Pvt. Ltd (AJPL) set up by Jawaharlal Nehru in 1937 was the company that published the now defunct National Herald along with Navjivan and Quami Awaz newspapers and the International Weekly magazine.

Young Indian is a private company formed in the year 2002 with Congress President Sonia Gandhi, Vice-President Rahul Gandhi and Congress leaders Motilal Vohra and Oscar Fernandes as directors.

Sonia Gandhi and Rahul Gandhi together hold a 76% stake in Young Indian. The rest is held by Congress politicians Moti Lal Vora and Oscar Fernandes (12% each).

Congress party's loan to AJPL

In 2008, a fledging National Herald was closed down. Subramaniam Swamy alleges that in 2011, the Congress Party extended a loan of 90 crores to Associated Journals Pvt Ltd. This loan was apparently given to write off accumulated debts of Associated Journal Pvt Ltd and thereby restart the National Herald, which was closed in 2008.

When questioned about this in the past, the Congress party has said that extending the loan was part of its political dharma and for propagation of its ideology. The loan was paid off from over Rs 2000 crores donation, which the party received between 2004-05 and 2010-11.

With the help of the loan, APJL’s debts were written off.

Young Indian and AJPL

In the meantime, Young Indian proposed to take over the debt of over Rs 90 crore in lieu of 99.1% shares being transferred to them. Sonia Gandhi and Rahul Gandhi became owners of the AJPL thereby.

The Mint in an article in November 2102 says, On 21 December 2010, less than a month after its incorporation, AJL’s board approved the assignment of Rs.90.21 crore in accumulated loans taken from the All India Congress Committee (AICC), to Young Indian. This debt was then retired for a consideration of Rs.50 lakh, which Young Indian paid to AICC. On AJL’s books, it was converted into equity.

At the heart of the controversy is the Herald House building that AJPL owned, which now effectively belongs to the Young Indian now. In addition, National Herald has huge properties across the country in New Delhi, Mumbai, Lucknow, Allahabad, Bhopal, Indore and Panchukula. 

Subramaniam Swamy’s contention is that AJPL’s Young Indian deal was a sham, intended to grab the Herald house- a property worth 1,600 crores- he says.

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