This Article is From Jun 15, 2022

The National Herald Case And How Gandhis Are Allegedly Involved

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India News
New Delhi:

The National Herald case, in which the Enforcement Directorate is questioning Rahul Gandhi, involves the Young Indian's takeover of AJL (Associated Journals Limited) -- the company that runs the National Herald newspaper -- and the dealings thereafter.

The Congress has refuted all allegations and claimed the case is being used for "political vendetta" by the ruling BJP.

The Enforcement Directorate charge:
The Young Indian company, which took over AJL, a company which runs the National Herald newspaper, also took over Rs 800 crore in assets of AJL. According to the Income Tax department, this should be considered an asset of the shareholders of Young Indian -- Sonia Gandhi and Rahul Gandhi, for which they should pay tax

The Congress counter:
Assets of AJL went to a Young Indian, a non- profit, and so the shareholders could not make any money from assets since that is not allowed under the law. The Income Tax order has been challenged in court and is pending in the Supreme Court.

The Enforcement Directorate charge:
The Congress claims Young Indian is a non-profit but it has not done any charitable work. The only transaction it did was the transfer of AJL's debt.

The Congress counter:
The objective of Young Indian was to ensure the newspaper was running, the newspaper is the charity here.

The Enforcement Directorate charge:
Young Indian took debt for AJL of Rs 50 lakh. What is the source of this Rs 50 lakh?

The Congress counter:
Young Indian took a loan from the Dotex company of the RPG Group, which was paid back with interest by cheque for Rs 1 crore.

The Enforcement Directorate charge:
Dotex was a shell company set up just for this transaction.

The Congress counter:
How is it a shell company if all transactions are done by cheque? How are Gandhis answerable for someone else's company? Please question RPG too.

The RPG Group statement to NDTV:
Dotex is an investment company acquired in 2007-08 holding shares of the Group's companies. Not sure why Dotex invested in Young Indian, predates demerger

The RPG has said that the Dotex loan to Young Indian repaid with 14 per cent interest.

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