Conundrum involving National Herald, its real estate and Congress | EXPLAINED

The National Herald case continues to draw the limelight amid protests and politics surrounding the questioning of Congress leader Rahul Gandhi by the Enforcement Directorate. Evidently the controversy is no longer limited to the merits of the unsecured loan worth Rs 1 crore borrowed by Young Indian —a company controlled by the Gandhi family but extended to the ownership and valuation of the properties belonging to National Herald’s publishing company Associated Journals Limited. Next month, Young Indian borrowed Rs 1 crore loan from a Kolkata-based RPG group owned company Dotex Merchandise Private Limited. The Income Tax assessment alleged that the Gandhi family controlled Young Indian acquired full control over the real estate properties of AJL worth hundreds of crores, by only paying 50 lakhs. Asserting that there is no scope of money laundering in the AJL-YI business, Singhvi further added, “Young India was a newly created company under a special provision of the company’s act section 25 which has two very vital conditions, a not for profit company by definition, by statute, by law and no dividends can be given to the shareholders and directors.” TRUE WORTH OF NATIONAL HERALD’S REAL ESTATE India Today has found contrasting state of affairs at the AJL properties in New Delhi, Lucknow, Panchkula, Patna and Mumbai.