NEW DELHI: The Enforcement Directorate (ED) claimed before a Delhi court on Thursday that the National Herald case is a "classic case of money laundering ".
Young Indian Pvt Ltd, in which ex-Congress presidents Sonia Gandhi and Rahul Gandhi held a 76% stake, was allegedly created to launder Rs 2,000 crore from Associated Journals Ltd, the company that published 'National Herald' newspaper.
"This is a classic case where the offence of money laundering is made against all the accused," submitted additional solicitor general SV Raju, appearing for the ED before the court of special judge Vishal Gogne. He asked the court to take cognisance of the chargesheet.
The court was hearing arguments on the point of cognisance of the chargesheet filed against Sonia Gandhi and Rahul Gandhi in the money laundering case .
The agency concluded its arguments in the case on Thursday. Senior advocate Abhishek Manu Singhvi will make submissions before the court on Friday, appearing for Sonia Gandhi.
The ED, through the ASG, submitted that Sonia and Rahul Gandhi were beneficial owners and in ultimate control of Young Indian, and that after the deaths of other shareholders they had 100% control.
"These two persons controlled the All India Congress Committee. They saw that AICC released a Rs 90 crore loan to Associated Journals Limited , or AJL, a Rs 2,000 crore company, the publisher of National Herald newspaper. The purpose was to have Rs 2,000 crore," Raju told the court.
Raju claimed Sonia and Rahul Gandhi were responsible for the conduct of business of Young Indian and the fraudulent takeover of properties valued at over Rs 2,000 crore of AJL was with their connivance and consent.
The ASG alleged that the shareholding in the venture was just in name and that all the other accused were puppets of the Gandhi family. He added that Sonia and Rahul Gandhi control Congress and wanted to get hold of Rs 2,000 crore instead of the said Rs 92 crore.
As per the ED, Congress provided an interest-free loan of Rs 90 crore to AJL, which had assets worth Rs 2,000 crore, for a consideration of just Rs 50 lakh. This debt was allegedly converted into equity in YI's favour.
"They deprived AJL's shareholders of their right. YI invested just Rs 50 lakh and got Rs 2,000 crore. YI gained wrongfully and shareholders suffered," he said.
The court asked Raju if the shareholders are also witnesses in this case. Calling the matter a little peculiar, the judge asked whether they should not also be made witnesses. "The ED has not investigated the 1,000 shareholders. So will this trial go on without them being witnesses," the court asked.
The ASG replied, "The record speaks for itself. This is a classic case of money laundering. The real culprits are these seven persons (including Sonia and Rahul), once you pierce the veil. Today, Sonia and Rahul Gandhi hold almost all shares. They're the beneficial owners of the company."
Young Indian Pvt Ltd, in which ex-Congress presidents Sonia Gandhi and Rahul Gandhi held a 76% stake, was allegedly created to launder Rs 2,000 crore from Associated Journals Ltd, the company that published 'National Herald' newspaper.
"This is a classic case where the offence of money laundering is made against all the accused," submitted additional solicitor general SV Raju, appearing for the ED before the court of special judge Vishal Gogne. He asked the court to take cognisance of the chargesheet.
The court was hearing arguments on the point of cognisance of the chargesheet filed against Sonia Gandhi and Rahul Gandhi in the money laundering case .
The agency concluded its arguments in the case on Thursday. Senior advocate Abhishek Manu Singhvi will make submissions before the court on Friday, appearing for Sonia Gandhi.
The ED, through the ASG, submitted that Sonia and Rahul Gandhi were beneficial owners and in ultimate control of Young Indian, and that after the deaths of other shareholders they had 100% control.
"These two persons controlled the All India Congress Committee. They saw that AICC released a Rs 90 crore loan to Associated Journals Limited , or AJL, a Rs 2,000 crore company, the publisher of National Herald newspaper. The purpose was to have Rs 2,000 crore," Raju told the court.
Raju claimed Sonia and Rahul Gandhi were responsible for the conduct of business of Young Indian and the fraudulent takeover of properties valued at over Rs 2,000 crore of AJL was with their connivance and consent.
The ASG alleged that the shareholding in the venture was just in name and that all the other accused were puppets of the Gandhi family. He added that Sonia and Rahul Gandhi control Congress and wanted to get hold of Rs 2,000 crore instead of the said Rs 92 crore.
As per the ED, Congress provided an interest-free loan of Rs 90 crore to AJL, which had assets worth Rs 2,000 crore, for a consideration of just Rs 50 lakh. This debt was allegedly converted into equity in YI's favour.
"They deprived AJL's shareholders of their right. YI invested just Rs 50 lakh and got Rs 2,000 crore. YI gained wrongfully and shareholders suffered," he said.
The court asked Raju if the shareholders are also witnesses in this case. Calling the matter a little peculiar, the judge asked whether they should not also be made witnesses. "The ED has not investigated the 1,000 shareholders. So will this trial go on without them being witnesses," the court asked.
The ASG replied, "The record speaks for itself. This is a classic case of money laundering. The real culprits are these seven persons (including Sonia and Rahul), once you pierce the veil. Today, Sonia and Rahul Gandhi hold almost all shares. They're the beneficial owners of the company."
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