National Herald case: ED has misuse of Congress funds for AJL takeover under its radar

New Delhi, Jun 14: The Enforcement Directorate (ED) is looking into suspected misuse of Congress party funds to take over the Associated Journals Ltd through Young Indian Private Limited which resuled in the acquisition of immovable properties of AJL too.

The ED which questioned Congress leader Rahul Gandhi in connection with this case will probe him today as well. The allegations were first levelled by BJP leader Subramanian Swamy who had filed a private complaint in 2012 before a court in Delhi. He alleged that the Gandhis had committed fraud and misused party funds to purchase a company that ran the National Herald Newspaper.

He claimed that by acquiring AJL through a new company, Young India, the Gandhis had also acquired properties worth several hundred crores owned by AJL in Mumbai, Lucknow, Patna, Delhi and Panchkula. This also included the acquisition of the six-storeye Herald House at Bahadur Shah Zafar Marg.

The Congress has however denied all allegations and said that the plea by Swamy was misconceived and premature. They also said that the agency had unearthed no proof of illegality. The Congress also said that the ED investigation was a political ploy to target the Gandhis and part of the government's political vendetta against the Congress.

The AJL was incorporated in 1937 by former prime minister, Jawaharlal Nehru. The company published the National Herald, Urdu publication Quami Awas and Hindi language Navjivan. However due to financial constraints it stopped publishing the newspapers in 2008. The Congress advanced loans worth Rs 90.21 crore to AJL over a period of time.