Congress chief Sonia Gandhi has tested positive for Covid-19, but she will depose before the Enforcement Directorate on June 8, said party spokesperson Randeep Surjewala on Thursday while announcing the news of her illness. The investigating agency, on its part, might have heard the news, but it has not been officially intimated about her medical condition so far, which means it cannot offer her an alternative until asked.
On the other hand, Rahul Gandhi, who was asked to be present for questioning on June 2, sent an email to the Central anti-money laundering agency seeking more time since he was travelling. Fresh dates for summons will be issued to Rahul. This is the first time the Gandhis have been summoned by the ED in connection with a money laundering case in the National Herald matter.
Under the lens of the ED is the alleged illegal benefit of Rs 414.40 crore in form of property obtained by the Gandhi family, which the Central agency claims was acquired through “fraud and conspiracy”, making it a fit case for investigation by the ED under the Prevention of Money Laundering Act. The Congress has denied all charges and claimed it was an open and shut case by the ED itself.
Notably, the ED’s powers to register complaints, launch investigations and carry out arrests is under judicial review, with the Supreme Court examining the application of the PMLA in several cases.
Presently, the ED can take up cases for investigation when there is a predicate offence in the form of an FIR, filing of a charge-sheet or the court taking cognisance of the matter. Sources said in this case, the court has taken cognisance of the issue, which allows the ED to step in. However, the Congress party claims there is no ongoing case against them.
According to ED officials, the money laundering in the case goes back to the investigation by the Income Tax Department, which showed that Sonia and Rahul had allegedly taken over commercial immovable properties worth nearly Rs 800 crore of the Associated Journals Ltd. (AJL), publisher of the newspaper National Herald, by incorporating Young Indian Ltd with a share capital of Rs 5,00,000.
A suspected hawala entry of Rs 1 crore from a shell company of Kolkata is under the scanner. “It is surprising to note that whole process of takeover of commercial property of AJL was completed within three months from the date of incorporation of Young Indian Ltd without paying any taxes and stamp duty,” said an investigator.
The Income Tax Department levied tax of Rs 249.15 crore on the benefit of Rs 414.40 crore accrued to the Gandhi family through an order in December 2017. The Income Tax proceedings and assessment order was challenged twice by the Gandhis before Delhi High Court through writ petitions, which were dismissed. The order of the Income Tax Authorities levying tax of Rs 249.15 crore has already been confirmed by the Commissioner of Income Tax (Appeals) in December 2018, said investigators.
Young Indian has challenged the order of CIT(A) before the Income Tax Appellate Tribunal (ITAT). The second appeal of Young Indian had been disposed of by the ITAT in March.
Sources said the ITAT, while confirming the order, held that benefit of Rs 395 crore was accrued to Gandhis as against the benefit determined by the IT department at Rs 414.40 crore. “It is evident from the order of the second appellate authority that Gandhis had acquired benefit of Rs 395 crore by fraudulent takeover of properties of AJL,” said the official.
ED sources said the charges against the duo have been proved by multiple judicial forums.
The ED probe is further taking into account the ongoing probes, both by CBI and ED, against Bhupinder Singh Hooda, where it is alleged that the then Congress government in Haryana had illegally allotted an immovable property to the AJL. Accordingly, a charge-sheet was filed against Hooda, who was then chief minister, and other officials. The ED has already attached the immovable property located at Panchkula under the PMLA.
Investigators said the Central and state governments had allotted several immovable properties located at prime locations to the AJL on a token payment for publication of the newspaper. “However, Ministry of Housing and Urban Development has later on detected that the property of National Herald House was used to earn commercial income instead of publishing newspapers,” it said. Accordingly, the lease deed of the Herald House was cancelled and the order of the ministry, challenged by the Gandhis in Delhi High Court, was dismissed.
The focus of the PMLA probe initiated against Gandhis is on certain key issues such as how important officer-bearers of AICC—Sonia Gandhi, Rahul Gandhi, Motilal Vora and Oscar Fernandes—devised ways to take over AJL.
“The objective was two-fold: One to obtain valuable benefits embodied in business assets of the AJL and not to pay any tax on business income of earning such benefit,” said an official.
The agency said the process was put into motion in 2010 and completed in 2012, with allotment of 99 per cent shares of AJL to the assessee company, resulting in non-compliance of provisions of the Companies Act, 1956.Under the scanner is also a non-existent loan of Rs 90.21 crore and role of hawala entry operators in Kolkata.
Sources said further investigation will focus on how the Gandhis allegedly pursued their objective of taking over nearly 100 per cent shares of the AJL.
On Thursday, the BJP attacked the Congress on corruption scandals. “The government’s policy is very clear: Zero tolerance for corruption. All the agencies, whether it’s CBI or ED, are working independently,” said Gaurav Bhatia, spokesperson of BJP. “Three members of Gandhi family—Sonia, Rahul and Robert Vadra—have corruption charges against them,” he said.
