Congress party president Sonia Gandhi and Rahul Gandhi were issued summons by the Enforcement Directorate (ED) regarding a money laundering case against Young Indian.
Sonia, Rahul, and Priyanka are majority stakeholders in Young Indian — incorporated in November 2010, together with Sam Pitroda and Suman Dubey. Young Indian owns Associated Journals Ltd. (AJL) that rolls out National Herald and other Congress party literature.
Allegations that the Gandhis turned AJL into their family-owned entity have been under investigation for tax violations and money purportedly laundered through shell companies. The Congress has extended a loan of 90 crores to AJL and has later written it off with just 50 lakh rupees paid once Young Indian took over AJL.
Young Indian had a meager share capital of Rs.5 Lakhs when it took over AJL having properties worth Rs.800 crores across major cities in India. In addition, as per the IT department assessment, Young Indian took Rs.1 Crore from a shell company in Kolkatta through the Hawala route. Moreover, the process of Young Indian incorporating AJL was completed by the stakeholders within three months without paying taxes and stamp duties.
The IT department has already withdrawn the charitable status of Young Indian and, in its assessment order, accused Sonia, Rahul, former Congress party treasurer Motilal Vora, and late Union minister Oscar Fernandes. The order said, they “devised the scheme involving pre-ordinate artificial and fraudulent steps to take over AJL.”
Responding to the ED summon, Sonia Gandhi would appear on June 8. However, Rahul Gandhi has sought deferment.
Image Source: Reuters