ED has issued an order to provisionally attach properties worth Rs. 751.9 Crore in a money-laundering case investigated under the PMLA, 2002. Investigation revealed that M/s. Associated Journals Ltd. (AJL) is in possession of proceeds of crime in the form of immovable properties spread across many cities of India such as Delhi, Mumbai and Lucknow to the tune of Rs. 661.69 Crore and M/s. Young Indian (YI) is in possession of proceeds of crime to the tune of Rs. 90.21 Crore in the form of investment in equity shares of AJL.
ED initiated money-laundering investigation on the basis of process issued by the court of Metropolitan Magistrate Delhi after taking congnizance of a private complaint vide order dated 26.06.2014.
The Court held that seven accused persons including M/s Young India, prima facie committed offences of criminal breach of trust u/s 406 of IPC, cheating and dishonestly inducing delivery of property u/s 420 of IPC, dishonest misappropriation of proerty u/s 403 and criminal conspiracy u/s 120B of IPC.
The Court held that the accused persons hatched a criminal conspiracy to acquire properties orth hundreds of Crores of AJL through a special purpose vehicle, M/s Young Indian.
M/s AJL was given land on concessional rates in various cities of India for the purpose of publishing newspapers.
AJL closed its publishing operations in 2008 and started using the properties ofr commercial purposes.
AJL had to repay a loan of Rs. 90.21 Cr. to All India COngress COmmittee (AICC), however AICC treated the said loan of Rs. 90.21 Cr. as non-recoverable from AJL and sold it for Rs.50 lakh to a newly incorporated company M/s Young Indian without any source of income to pay even Rs.50 lakh.
By their action, the shareholders of AJL as well as donors of Congress party were cheated by the office bearers of AJL and Congress party.
ED investigation revealed that after purchasing the loan of Rs. 90.21 Cr. from AICC, YI demanded either repayment of loan or allotment of equity shares of AJL to it. AJL held an Extraordinary General Meeting (EGM) and passed a resolution to increase share capital and issue fresh shares worth Rs. 90.21 crore to YI.
With this fresh allotment of shares, shareholding of more than 1000 shareholders was reduced to a mere 1% and AJL became subsidiary company of YI. YI also took control over properties of AJL.
Further investigation is under progress.
The Congress reacts on the ED’s terming it was just the BJP’s “petty vendetta tactics”.
Senior Congress leader Abhishek Manu Singhvi said in a statement this reflected the BJP’s desperation to divert attention from certain defeat in the ongoing elections in each state.
