In a significant development, the Enforcement Directorate (ED) has issued provisional attachment orders for properties amounting to Rs 751.9 crore in connection with a money-laundering case involving Young Indian and the Associated Journals Ltd (AJL). The scrutiny centers on accusations that Young Indian, associated with the Gandhi family, acquired AJL and its assets for a nominal sum, purportedly linked to a loan extended by the Congress party.
Background of the Investigation:
The ED initiated the money laundering investigation following a Delhi court’s acknowledgment of a private complaint dated June 26, 2014. The court found merit in the complaint, stating that seven accused, including Young Indian, had prima facie committed offenses such as criminal breach of trust, cheating, dishonest misappropriation of property, and criminal conspiracy.
According to the ED spokesperson, the investigation revealed that AJL, which was initially granted land at concessional rates for publishing newspapers, later repurposed the properties for commercial use. AJL faced an outstanding loan of Rs 90.21 crore from the All India Congress Committee (AICC). Allegedly, the AICC treated this loan as non-recoverable, sold it to Young Indian for Rs 50 lakh, and AJL ceased its publishing operations in 2008.
Sequence of Events:
The ED claims that Young Indian, after acquiring the loan from AICC, demanded repayment or the issuance of equity shares of AJL. An Extraordinary General Meeting (EGM) was held, resulting in a resolution to increase share capital and issue fresh shares worth Rs 90.21 crore to Young Indian. Consequently, the shareholding of more than 1000 shareholders in AJL was reduced to a mere 1 percent, and AJL became a subsidiary of Young Indian, which also gained control over AJL’s properties.
Political Reactions:
The ED’s actions have triggered political reactions, with the Congress party accusing the Bharatiya Janata Party (BJP) of attempting to divert attention amid ongoing state elections. Congress president Mallikarjun Kharge and AICC spokesperson Abhishek Singhvi both commented on the situation, emphasizing their belief that these actions are politically motivated.
As the investigation unfolds, the ED’s provisional attachment orders have set the stage for a contentious battle between political rivals, adding another layer of complexity to an already charged political landscape.
