The Enforcement Directorate (ED) has issued notices to some Congress leaders from Telangana and Andhra Pradesh in the National Herald case.
Officials on Friday said that while some Congress politicians have been summoned for questioning over the next few weeks, others have been given notices to explain certain payments made to Young Indian Limited (YIL), the company that owns the National Herald newspaper.
Officials said four leaders have been issued the notices.
Earlier this week, Karnataka Congress President DK Shivakumar said after finishing his questioning session with the ED in Delhi that he was questioned about certain transactions made by him to this company in the past.
"Surprisingly, they have asked me about the payment from one of my trust, from me and my brother, to Young Indian," he told reporters on September 19.
Shivakumar said he had sought more time from the ED to furnish details about his assets and liabilities.
What is National Herald case?
The National Herald case is rooted in a 2012 criminal complaint that alleged that Congress leaders including Sonia and Rahul Gandhi, were involved in cheating and breach of trust in the acquisition of Associated Journals Ltd (AJL) by YIL in 2011.
AJL had been publishing National Herald since 1938. It was shut down in 2008 because of financial troubles.
Following the troubles, the Congress party granted a Rs 90 crore interest-free loan to the AJL, but it could not be revived, and AJL failed to repay the loan to the Congress, according to The Financial Express.
Notably, under the Income Tax Act, no political organisation can have financial transactions with a third party, according to a Rediff News report.
In 2010, AJL declared the loan cannot be paid and transferred the loan to YIL. In lieu of it, AJL also issued its shares to YIL, giving YIL control of 99 per cent of AJL and its real estate assets, as per Rediff. YIL paid a further consideration of Rs 50 lakh to AJL. The report added that the Congress party wrote off the loan given to AJL as unrecoverable.
This meant, as per the complaint, that YIL ended up having the control of AJL and its real-estate assets for Rs 50 lakh on a Rs 90 crore loan that Congress party wrote off.
Questioning of top Congress leaders
Sonia and Rahul Gandhi are prominently involved in the company at the centre of the National Herald case — YIL.
Sonia and Rahul owned 76 per cent of YIL and the remaining 24 per cent was owned by Congress leaders Motilal Vora and Oscar Fernandes.
Rahul clocked over 50 years in ED's questioning in June over five days. Sonia has also been summoned twice for questioning.
It is understood that Rahul, during his deposition before the ED, stuck to the position that there was no personal acquisition of assets by himself or his family.
According to the ED, assets worth about Rs 800 crore are "owned" by the AJL and the agency wants to know from the Gandhis how a not-for-profit company like YIL was undertaking commercial activities of renting out its land and building assets.
The real-estate angle in National Herald case
The real estate, cited above, is central to the National Herald case.
Prior to acquisition by Gandhis-owned YIL, the AJL owned around Rs 2,000-crore worth of real estate in cities such as Delhi, Mumbai, Patna, and Panchkula.
By acquiring AJL, the YIL also acquired this real estate. The acquisition is controversial as YIL inherited such massive real estate in lieu of loan of 90 crore at a payment of Rs 50 lakh, according to the complaint in which the case is rooted.
(With PTI inputs)
