New Delhi: The Congress on Wednesday (April 16) has questioned the BJP over whether its “sister organisations” like the Rashtriya Swayamsevak Sangh mouthpieces Panchjanya and Organiser “function on free air” after the saffron party accused the Congress of misappropriating public property given to the National Herald newspaper.

The BJP’s allegation came after the Enforcement Directorate (ED) on Tuesday filed a chargesheet against Congress MPs Sonia Gandhi and Rahul Gandhi as well as others in the National Herald case, accusing them of money laundering.

In response to a question by The Wire at a press conference in Delhi, Congress MP Abhishek Manu Singhvi said that the party has been supporting Associated Journals Limited (AJL), which publishes the National Herald, for decades.

Meanwhile, Congress MP and the party’s media and communications in-charge Jairam Ramesh said that the Congress and the AJL cannot be divorced from each other.

“Do you know for how many decades the Congress has been giving funds by way of supporting an economically disadvantaged AJL? The BJP was not even in the political landscape when the AJL started functioning. Sometime in 1950, 1960, 1970 [sic] somebody gave Rs 5 lakh, somebody gave Rs 10 or 20 lakh because we could not allow the AJL to fall down,” said Singhvi in response to The Wire’s question.

He continued: “Did the BJP ever in any avatar raise an objection that the accumulation of [loans] over almost 50 years was Rs 90 crore? The AJL was doddering in debt from whom? From a commercial company? No. From its own Congress party.

“So where is the criminal intent? And is it a crime for the Congress party, who has started this [the AJL] with a certain set of ideals since the independence movement, to support an economically struggling AJL which it wants to succeed, which it wants to rejuvenate by transferring its debt to Young Indian?

“Does the BJP not do it everyday for all its sister organisations like Panchjanya and Organiser and all this? Do they function on free air?”

Singhvi’s response comes as the BJP earlier on Wednesday at a press conference said that a political party cannot give funds to a private entity.

“Its [the National Herald’s] publication stopped in 2008. After that the Congress gave Rs 90 crore to Associated Journals Limited, which published the newspaper. A political party cannot give party funds to a private body, it is prohibited,” said former law minister and BJP MP Ravi Shankar Prasad.

“They formed a company called Young Indian – with 38% shares being held by Sonia Gandhi and 38% by Rahul Gandhi. Rs 9 crore worth of equity shares were transferred to Young Indian. After that, the entire property of Associated Journals Limited in Delhi, Mumbai, Lucknow, Bhopal and Patna worth thousands of crores came to Young Indian.

“It was said that it is a charitable organisation, but it is not known till today what charity they have done. After complaints, the ED investigated the matter,” he said.

The Congress on the other hand said that the AJL was “very much part of the Congress party”.

“It was started by the Congress party and its members, so you cannot divorce the AJL from the Congress,” said Ramesh.

‘Case of money laundering without any money being laundered’

The Congress accused the BJP of using a “one-trick wonder” and alleged that a case of money laundering is being made out without any money being laundered or any property being transferred.

“I had called this case a one-trick wonder. A case of money laundering has been made out, without money being laundered or any property being transferred,” said Singhvi.

He said that the AJL is a decades-old company that was not successful economically and that the Congress at various points of time had given it loans accumulating to Rs 90 crore.

“The AJL is a well-known company which is decades old and which was set up on a certain set of ideals. This company was not successful economically. Over about 50 years, at different points of time, Congress, which made it on certain ideals, gave loans. After several decades, this money became a total of Rs 90 crore. In such a situation, the question arose as to how to restructure the AJL, in which it was decided that it should be made a debt-free company.

“In such a situation, the debt of Rs 90 crore of this company was transferred to a new company named Young Indian,” said Singhvi.

Singhvi said that the debt was transferred on paper and the AJL’s shares were issued to Young Indian, which was a not-for-profit charitable company formed under Section 8 of the Companies Act.

“This debt was transferred on paper, meaning the debt that was earlier of the Congress party now became that of Young Indian. It was necessary to clear that debt, otherwise how would the AJL become strong, how would the National Herald become strong? It was made debt-free by converting the loan into a share,” he said.

“That is, the AJL’s shares were issued to Young Indian, due to which Young Indian became a 90-99% shareholder of the AJL. Young Indian’s directors were Motilal Vohra, Oscar Fernandes, Sam Pitroda, Sonia Gandhi, Rahul Gandhi, etc.

“The AJL’s shareholding went to Young Indian, but neither money nor property was transferred. Very strange arguments are being given in this matter, that we formed Young Indian to launder money. Young Indian is a … not-for-profit charitable company formed under Section 8.”

Singhvi said that even if profit is made from Young Indian, money cannot be given as dividend as it is prohibited under Section 8.

“Apart from this, no salary, no perks were given from it and neither any property was bought or sold by this company. It did not do any economic activity. It was a not-for-profit Section 8 company. All properties in Kanpur, Delhi and Mumbai are still owned by the AJL, only the shareholding of AJL is now with Young Indian,” he said.

While both Sonia and Rahul Gandhi have been named as accused in the ED’s chargesheet,  Singhvi questioned where the money trail is and where the proceeds of crime are.

“The point is not who the directors are. Today, I am asking a very clear question – to the public, to the country, to the media and through you, to the ED as well.

“By giving 99% shareholding to the AJL money laundering has been done of all these properties which AJL owns. The directors of Young Indian have usurped all these properties. Where is the money trail? Where are the proceeds of crime?

“When the AJL’s property belonged to the AJL, [the] property was never transferred to Young Indian. Legally, until Young Indian buys those properties, the ownership of the properties will remain with the AJL. So how are Young Indian’s directors doing money laundering? In such a situation, from where are the directors of Young Indian doing money laundering, please someone tell us about this?”

‘Political vendetta’

The two Congress MPs said that the case is being used for political vendetta to divert attention from economic and foreign policy issues.

“For the last two days, the politics of vendetta, harassment and intimidation has been going on,” said Ramesh.

“Efforts are being made to divert attention from public issues, foreign policy and economic crises. The masterminds of this politics of vendetta are two people. We will not be silenced. Whatever the prime minister and home minister do, we will not stay silent and we will keep raising these issues of the people.”

Singhvi said that the case is nothing but political vendetta in legal disguise.

“Selective justice is nothing but political thuggery,” he said.