Sonia, Rahul floated pvt firm to commit fraud: Swamy

Nehru-Gandhi scions involved in ‘sham, bogus’ deal, claims Janata Party chief

GN Bureau | November 1, 2012



Heralding an open season for the Nehru-Gandhi family, Janata Party president Subramanian Swamy on Thursday accused Congress president Sonia Gandhi and her son, party general secretary Rahul Gandhi, of floating a private company and converting a public limited company into it.

The allegation comes weeks after anti-corruption activist-turned-politician Arvind Kejriwal acused Sonia’s son-in-law Robert Vadra of receiving undue benefits from the Haryana government and real estate giant DLF in his realty business.

Addressing a media conference on Thursday afternoon, Swamy alleged that Rahul and Sonia jointly owned 76 percent stake in the company named ‘Young Indian’, and acquired Associated Journals Limited, which owns the National Herald and Quami Awaz newspapers, and high-value real estate in Delhi and places in Uttar Pradesh associated with the media firm.

“The deal is a sham, bogus, and a violation of several laws,” Swamy alleged. “It is a fraud committed in order to grab the ‘Herald House’ in Delhi, located in a hub (at ITO in Central Delhi) and valued at about Rs 1,600 crore.”

Claiming that Rahul and Sonia own 38 percent each in the company, Swam alleged that the Amethi MP did not disclose this fact in his affidavit on assets and liabilities to the Election Commission while filing his nomination for 2008 Lok Sabha elections.

He also alleged that the company held “shareholders’ meeting” at 10 Janpath, Sonia Gandhi's government-allotted official residence — “in violation of law”.

Demanding a CBI inquiry into the case, Swamy also said one of the “dubious facts” about Associated Journals is the fact that the likes of Jawaharlal Nehru, Indira Gandhi, Feroze Gandhi, GD Birla and “other noted deceased persons” are shown as “current shareholders”.

“In fact, 80 percent of the original shareholders are no more alive,” according to a statement released by the Janata Party president.

FULL TEXT OF SUBRAMANIUM SWAMY’S STATEMENT AND ALLEGATIONS:

1. Mrs. Sonia Gandhi and Rahul Gandhi had floated a Section 25 private company called Young Indian, and acquired the public limited company, the Associated Journals Ltd., which is the owner of National Herald and Quami Awaz Newspapers, and all high value real estate property in Delhi and other places in Uttar Pradesh of the said company. The deal is a sham, bogus, and a violation of several laws. It is a fraud committed in order to grab the Herald House in Delhi, that is located in a hub and which is valued at about Rs.1600 crores.

2. The first dubious fact of the AJ Company RoC details is that Jawahar Lal Nehru, Indira, Feroze Gandhi, GD Birla and other like noted deceased person, are shown as current shareholders! In fact 80 per cent of the original shareholders are no more alive So too many of the defunct firms, including several companies having dubious addresses in Kolkata, are shown as shareholders of the Associated Journals Ltd.

3. The second dubious fact is the acquisition of the associated Journals Ltld. Judging by documents filed with RoC it is wholly illegal. On February 26, 2011, the Board of AJ Pvt. Ltd. passed a Resolution approving that All India Congress Committee 9AICC) had loans to the Company unsecured and for zero interest rate to extinguish the liability of the company of more than Rs.90 crores. It is illegal for a political party to give loans to any company. The Resolution also resolved that in lieu of this deal with AICC, the Board decided to allot all AJ’s nine crore shares, of Rs.10 each to Young Indian, the private company of Sonia Gandhi and Rahul Gandhi, where both together more than three fourths of the total shares and fully control the said Young Indian Company.

4. The third dubious fact is that Young Indian filed statements with the RoC disclosing that the shareholders meeting was held in Sonia Gandhi’s Government allotted 10, Janpath. This is violation of the law since the 10, Janpath, New Delhi Government accommodation cannot be used for commercial purposes and business.

5. The fourth dubious fact is that the Rs.90 crore liability of The associated Journals was owned by Young Indian for a mere Rs.50 lakhs!

6. Thus the deal was to grab the Rs.1600 crore worth Herald House and other properties of the National Herald/Quami Awaz in Delhi and in different part of UP for a commitment to pay Rs.50 lakh to AICC for the Rs.90 crores advanced as unsecured zero interest loan.

7. Therefore, I urge immediate institution of a SFIO/CBI probe into this dubious stinking deal between Young Indian and The Associated Journals as also the illegality of the AICC in giving a loan to a private company in reckless cronyism since the AICC President is Ms. Sonia Gandhi and General Secretary Rahul Gandhi who are also owners of Young Indian, the beneficiary. More curiously, the associated Journals Ltd.’s Chairman Shri Motilal Vore is also the Treasurer of the AICC!

8. In his election affidavit on assets and liabilities, Mr. Rahul Gandhi had failed to inform that he owned 38 per cent share of a company he had formed named Young Indian with his mother, Ms. Sonia Gandhi, who also owned 38 per cent of the shares.

 

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