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National Herald case: Young Indian asked to deposit Rs. 10 crore

National Herald case: Young Indian asked to deposit Rs. 10 crore

In news:

The Delhi High Court has directed Young Indian Pvt Ltd, in which Congress president Rahul Gandhi and his mother Sonia Gandhi are major stakeholders, to deposit Rs.10 crore in the Rs. 249.15 crore income tax proceedings against it.

The National Herald Case:

  • Subramanian Swamy, a member of the Bharatiya Janata Party (BJP) filed a petition in 2013, accused that Rahul Gandhi and Sonia of setting up a firm called the Young Indian Company, with 38 % shareholding by each, to buy the debt of the Associated Journals Limited, the public company managing the National Herald Newspaper, using the Congress party funds,  and thus acquiring the company,  worth an asset of more than 2000 crores just by paying a peanut  amount of just  Rs 50 lakhs.
  • According to allegations Motilal Vora, a Congress party member, was the the managing director of Associated Journals and later became a shareholder of the Young Indian Company.
  • Swamy alleged that the Young Indian Company then owned all of the equity in Associated Journals and rented out its properties to profit its shareholders, including Rahul and Sonia Gandhi, who together controlled 76 percent.

Background:

  • The Delhi trail court in August 2014 summoned Congress leaders Sonia Gandhi and Rahul Gandhi and other members for the alleged cheating and misappropriation of funds in acquiring ownership of the now-defunct English daily National Herald. All of them have been accused of misappropriation of property, breach of trust and criminal conspiracy.
  • However Sonia Gandhi Rahul Gandhi appealed to Delhi Highcourt requesting to quash the court case as it was lodged by a BJP leader, as a political motive and vendetta against them.

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