National Herald case: Gandhi family will be convicted by coming Independence Day, says Subramanian Swamy

Rajya Sabha member Subramanian Swamy today dropped a bombshell in a Delhi court hearing the National Herald case which charges the Congress’ first family with entering into a fraudulent deal that helped company controlled by Sonia Gandhi and Rahul Gandhi - Young Indian gain control of Rs 5,000 crore assets owned by Associated Journals Limited (AJL). The AJL also owns the National Herald Publication.

In an exclusive interview to India Today, Swami said that Gandhi family will be convicted by coming Independence Day.

Swamy submitted an assessment order by the Income Tax Department dated December 27 declaring that the Congress’ claim of giving Rs 90.25 crore loan to AJL was “totally bogus” and was carried only to facilitate Gandhi family-controlled company Young Indian to dubiously take over the ownership of the lands and buildings across India.

Swamy alleged that the 105-page Income Tax Assessment Order declares that the taxable income of Young Indian controlled by Sonia and Rahul Gandhi is little below Rs 414 crore.

The document, Swamy alleges cancelled Young Indian’s tax exemption certificate. Swamy said that the document proves his charges against the Gandhi family.Based on the document, the BJP MP has sought for a quick disposal in the case. However, this was contested by the lawyers of the defendant. The court after some heated arguments decided on March 23 as the next date for further proceedings.

TAX EVASION AND MASSIVE FINES

Swamy claimed the documents “were delivered to him along with the morning papers” on Friday by some unknown whistleblower.

The Income Tax Dept order produced by Swamy was put in a sealed envelope. Swamy claimed that the Assessment Order dated December 27 was served to Sonia Gandhi and Rahul Gandhi before the New Delhi Metropolitan Magistrate Ambika Singh on Saturday to prove that “the Income Tax Department endorses his complaints and charges against all accused by him.”

Swamy alleged that the I-T orders say “market assessment of the AJL properties in various cities including Delhi, Mumbai and Lucknow show that Young Indian by virtue of the deal owns the land and building assets of more than Rs.2000 crores."

ORIGINS OF YOUNG INDIAN

Young Indian a company aimed at charity was incorporated in December 2010. Sonia Gandhi and Rahul had 38 per cent shares each in the company. Congress leaders Oscar Fernandes and Motilal Vora held 24 per cent.

Sam Pitroda, who is regarded as the key element in the Congress turnaround over the last few months, and old Gandhi family associates are also the Directors and first promoters of Young Indian. All these six entities are out on bail in the case filed by Swamy from December 2015

Sources, close to Swamy, say that the Income Tax in its 105 page Assessment Order terms the “takeover of erstwhile National Herald newspaper publishing company AJL by Young Indian” as fraudulent, premeditated and hawala in nature to evade taxes.

Speaking to journalists Swamy contested the charge of political vendetta. He said that “during the course of assessment proceedings, many opportunities were allowed to the assessee (Young Indian) as well as the AICC to prove the date and mode of transfer of loan amounting to Rs.90.21 crores to the AJL”.

NO COOPERATION, BUT OBJECTIONS

Swamy added that the order specified that Congress leaders, including its treasurer Motilal Vora, did not cooperate and raised objections.

The issue is going to spiral into a big political clash little over a week before the budget session of Parliament. While the congress is yet to deny whether any such I-T assessment order was delivered to the accused in the National Herald case the party is already challenging how an income tax order - a private correspondence between a department and assessee reach Swamy.

The I-T probe is already mired in political acrimony. Sources say that the assessment order also includes Congress leader Motilal Vora’s letters to the department accusing the Assessing Officer with political bias for demanding the details of the Rs 90 crore loan claim to National Herald.

What is going to raise the hackles with the congress is the fact that Swamy has alleged that the Income Tax order also mentions former Congress president Sonia's daughter Priyanka Gandhi Vadra.

Sources allege that the order mentions “In order to fulfill the objective of acquiring 100 percent shares of the AJL, one of the majority shareholder of the assessee (Young Indian), Rahul Gandhi along with sister Priyanka Gandhi Vadra had purchased an additional 47,513 and 2,62,411 shares through Rattan Deep Trust and Janhit Nidhi Trust without complying with the provisions of the Companies Act.”

FRAUDULENT TAKEOVER

The order according to sources says that as early 2008 AJL had decided to close down printing national herald and start making commercial use of the assets owned by AJL. The allegation is that Congress leaders like Sonia Gandhi, Rahul Gandhi, Motilal Vora and Oscar Fernandes planned the “fraudulent takeover” of the publication company and evasion of taxes

To back the charge of “hawala transactions” involved in the national herald case sources claim the assessment order alleges that Young Indian receiving Rs 1 crore (USD 156,000) from Doltex - a Kolkata-based company and the transaction was purely hawala in nature

Sources claim that the order lays down that the “competent authority after making enquiry has held that the assessee company (Young Indian) had not carried out any activity in accordance with its charitable object and has cancelled the tax exemption enjoyed by the assessee company by passing an order under section 12AA(3) of the Act on December 26, 2017. In view of the above, the business income of almost Rs 414 crore earned by the assessee (Young Indian) during year under consideration was not subject to tax exemption”.

Subramanian Swamy attacks Gandhi family in National Herald case, claims they will be convicted soon