Full text: Sonia, Rahul accused of grabbing Rs 1,600 cr property

Janata Party President Subramanian Swamy has accused Rahul Gandhi and Sonia Gandhi of perjury a short while ago, and demanded a CBI inquiry in an alleged fraud involving the ownership of a public limited company that owns a pricey property in the heart of Delhi.

This is the full text of his 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 1,600 crores. (Note: a section 25 company is a non-profit company that pays no dividend)

2. The first dubious fact of the AJ company (available with the RoC) is that Jawahar Lal Nehru, Indira Gandhi, Feroze Gandhi, GD Birla and others noted deceased persons are shown as current shareholders! In fact 80 percent 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 Associated Journals Ltd.

PTI

3. The second dubious fact is the acquisition of Associated Journals Ltd. Judging by documents filed with RoC, it is wholly illegal. On February 26, 2011, the board of AJ Pvt Ltd passed a resolution approving unsecured loans from the All India Congress Committee (AICC) for zero interest rate to extinguish the liability of the company of more than Rs 90 crore. 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 hold more than three-fourths of the total shares and fully control Young Indian Company.

4. The third dubious fact is that Young Indian's filed statements with the RoC disclose that a shareholders' meeting was held in Sonia Gandhi's government-allotted home at 10, Janpath. This is a 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 Associated Journals was owned by Young Indian for a mere Rs 50 lakh!

6. Thus the deal was to grab the Rs 1,600 crore worth Herald House and other properties of the National Herald/Quami Awaz in Delhi and in different parts of UP for a commitment to pay Rs 50 lakh to AICC for the Rs 90 crore advanced as unsecured, zero interest loan.

7. Therefore, I urge immediate institution of a SFIO/CBI (Serious Frauds Investigation Office and CBI) probe into this dubious, stinking deal between Young Indian and 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 Journal's  Chairman, Motilal Vora, 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 percent share of a company he had formed, named Young Indian, with his mother, Ms Sonia Gandhi, who also owned 38 percent of the shares.


Updated Date: Nov 01, 2012 19:32 PM

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