Reserving its verdict in the pleas against summoning Sonia and Rahul Gandhi, the Delhi High Court on Friday felt that the Congress party could have written off the loan of Rs 90.25 crore owed to it by the publishers of National Herald, instead of assigning it to a charitable company in which some of its leaders are directors.

Justice Sunil Gaur made the observation while reserving judgement on the pleas of Congress President and the Vice President and four others against a trial court order summoning them on a cheating and breach of trust complaint filed by BJP leader Subramanian Swamy.

In response, Senior advocate Kapil Sibal, appearing for the Gandhis, said the loan was assigned to "clean the balance sheets of AJL" and to revive the company so that it can borrow money from the banks and run on its own. The party had loaned Rs 90.25 crore to Associated Journals Ltd. (AJL), publisher of National Herald, and on December 28, 2010 it had assigned this debt to Young Indian Ltd (YIL), the charitable company, for Rs 50 lakh, which, according to Swamy, amounted to breach of trust and cheating.

On his complaint, the trial court had issued summons to Sonia, her son Rahul and five others-Congress treasurer Moti Lal Vora, General Secretary Oscar Fernandes, Suman Dubey, Sam Pitroda and YIL. Swamy, while concluding his arguments today, told the court that the loan was "illegally" given to AJL and its shareholding was "fraudulently obtained" by YIL in order to misappropriate the property of the publication.

He argued that the magistrate "applied her mind" while issuing the summons and added that they could have been challenged in the trial court itself instead of coming to the high court and sought that the matter be sent back.Swamy also contended that the political party was being provided bungalows for office space, free time on government run television and radio, security cover, and exemption from income tax and thus, its "expenditure and investment obviously has to be for furthering public interest and cannot be for furthering private interest of anyone including its office bearers".