The Income Tax Department (ITD) exposes the blatant lies, frauds including hawala operations and land grabbing committed by Congress leaders Sonia and Rahul Gandhi controlled firm Young Indian in the National Herald case.

Income Tax in its detailed Assessment Order described the takeover of erstwhile National Herald newspaper publishing company AJL by Young Indian as a premeditated scheme of tax evasion, adventure, fraudulent, involved in hawala nature activities etc.

The ITD declared that the Congress’ claim of giving Rs.90-crores ($14 million) loan to the National Herald newspaper publishing company Associated Journal Limited (AJL) was a “totally bogus” claim to facilitate Gandhi family-controlled company Young Indian to dubiously take over the ownership of the lands and buildings across India. The 105-page Income Tax Assessment Order has declared that Sonia and Rahul Gandhi controlled Young Indian’s actual taxable income is more than Rs.414 crores ($65 million) and cancelled the firm’s tax exemption certificate. As per this Assessment Order dated December 27, 2017, served to Young Indian the previous week, the company is liable for tax evasion for the concealment of income of more than Rs.414 crores. According to tax experts, the concealment of income attracts fine in the range of 100% to 300% and prosecution for concealing the income.

The Assessment Order dated December 27 served to the Young Indian was produced by main petitioner and BJP leader Subramanian Swamy before the New Delhi Metropolitan Magistrate Ambika Singh on Saturday afternoon to prove that his complaints and findings against all the accused are totally ratified by the Income Tax department. After assessing the Fair Market Values of the properties of AJL in New Delhi, Mumbai’s Bandra region, Lucknow, Panchkula in Haryana and Patna, the Assessment Order says the Young Indian literally owns the land and building assets of more than Rs.2000 crores.

Income Tax in its detailed Assessment Order described the takeover of erstwhile National Herald newspaper publishing company AJL by Young Indian as a premeditated scheme of tax evasion, adventure, fraudulent, involved in hawala nature activities etc.

“However, during the course of assessment proceedings, many opportunities were allowed to the assessee (Young Indian) as well as the representatives of the AICC to prove the date and mode of transfer of loan amounting to Rs.90.21 crores to the AJL,” said Income Tax department, adding that Congress leaders including its Treasurer Motilal Vora did not cooperate and raised objections several times[1]. The IT Department also produced Vora’s letters accusing the Assessing Officer for political bias for seeking the details of the Rs.90 crore loan claim to National Herald. In some letters, Vora warns the Assessing Officer that he would face prosecution and has no power to look into these matters.

“In order to fulfil the objective of acquiring 100 percent shares of the AJL, one of the majority shareholder of the assessee (Young Indian), Rahul Gandhi along with sister Priyanka Gandhi Vadra had purchased an additional 47,513 and 2,62,411 shares through Rattan Deep Trust and Janhit Nidhi Trust respectively[2] without complying with the provisions of the Companies Act,” said Income Tax in detail saying that Congress claim of giving Rs.90 crore loan to AJL was wrong and this wrong claim was mooted to take over the land assets of AJL by floating a new company called Young Indian.

“As early as in the beginning of the year 2008 it was decided to close down the business of printing and publishing the newspaper by the AJL with the oblique purpose to make commercial use of the business assets of the AJL (commercial property located in posh areas of Delhi, Patna, Panchkula, Mumbai, Lucknow) acquired by it from the Central/ State Governments for publishing newspaper at ridiculously low prices…

“Important office bearers of the AICC namely Sonia Gandhi, Rahul Gandhi, Motilal Vora and Oscar Fernandes and AJL controlled by Motilal Vora and Oscar Fernandes have devised the scheme involving pre-ordinate artificial and fraudulent steps to take over AJL. The objective of the scheme was two-fold, one to obtain valuable benefits embodied in business assets of the AJL and two, to not pay any tax on business income of earning such benefit.

“The scheme has included a fraudulent transaction involving purchases of a non-existent loan of Rs.90.21 crores by AICC to AJL for a paltry sum of Rs. 50 lakhs ($78,000) by the assessee (Young Indian) company”.

The Income Tax Order also said that Young Indian receiving Rs. One crore ($156,000) from a Kolkata based company Doltex is nothing but a hawala transaction[3].

“The competent authority after making enquiry has held that the assessee company (Young Indian) had not carried out any activity in accordance with its charitable object and has cancelled the tax exemption enjoyed by the assessee company by passing an order under section 12AA(3) of the Act on December 26, 2017. In view of the above, the business income of the Rs.413,40,55,980 earned by the assessee (Young Indian) during year under consideration was not subject to tax exemption”.

The Assessment Order said that 44 opportunities spanning 890 days were given to Congress leaders and Young Indian company to prove their claims. The Income Tax also re-produced Motilal Vora’s letter to the Assessing Officer, accusing him of political bias and wide range of allegations when documents were sought for the party’s claim of giving a Rs.90 crore loan.

National Herald publication was stopped in 2008 and the publishing company AJL was taken over by Young Indian in December 2010. Sonia Gandhi and Rahul have 38 percent shares each in the newly floated Young Indian. Gandhi family’s trusted Congress leaders Motilal Vora and Oscar Fernandes have 12 percent shares each. The family’s close aides Sam Pitroda and Suman Dubey are also the Directors and first promoters of the Young Indian. In the case filed by Subramanian Swamy, all these six persons and Young Indian are accused and currently out on bail from December 2015[4]. Swamy approached the Metropolitan Magistrate’s court in February 2013 and taking cognizance of the office, the Court had summoned the Congress leaders. Though the Congress leadership went to Delhi High Court and Supreme Court against the trial court’s summons, however, it did not get relief. The Courts pronounced that they must face trial. After the trial court’s summons in July 2014, the Income Tax had issued notice to Young Indian and Congress and AJL for the controversial Rs.90-crore loan.

The Magistrate directed to put the documents in a sealed cover. Swamy also produced the documents produced by Sonia Gandhi in the Supreme Court (SC) in a Special Leave Petition for National Herald. Swamy said these were the documents he wanted and said he wanted Sonia to testify these documents or face perjury if documents placed in the SC were wrong. Next hearing in this case is adjourned for March 17.

Note:

1. The conversion rate used in this article is 1 USD = 64.03 Rupees.

References:

[1] NHCase: Peon gets his 15-minutes of fame – Mar 22, 2016, PGurus.com

[2] Janhit Nidhi Limited – Site2Corp.com

[3] Sonia and Rahul object to summoning of documents in the National Herald case – Sep 18, 2016, PGurus.com

[4] Sonia, Rahul hit out at Modi, get bail – Dec 19, 2015, The Hindu