1. ‘National Herald’ is a Newspaper started by Pt. Jawaharlal Nehru, Sardar Patel, Shri Purushottam Tandon, Acharya Narendra Dev, Shri Rafi Ahmed Kidwai and others in the year 1937 to give voice to the freedom movement in the country by setting up the paper owned by a company called Associated Journals Ltd. It was banned by the British from 1942 to 1945 during ‘Quit-India’ Movement, which Mahatma Gandhi described as “A Tragedy for the National Movement”.

Despite the editorial excellence of the paper, ‘National Herald’ continued to bleed financially and ran into losses and outstanding dues of Rs. 90 crores. In order to help the ‘National Herald’ newspaper tied over the crisis, Congress party gave a loan of Rs. 90 crores to it over a period of 10 years between the year 2002 to 2011 in about 100 instalments. What is important to note is that Rs. 67 crores of this Rs. 90 crore loan was used by ‘National Herald’ to pay salary and VRS of its employees. Rest of the money was used for payment of Govt. dues like electricity charges, house tax, tenancy charges, building expenditure etc.

Those in BJP and their favourites calling giving of loan of Rs. 90 crores to ‘National Herald’ as a crime are saying so out of utter senselessness and maliciousness. It deserves to be rejected.

2. Grant of loan by a political party is not a criminal offence under any law in India. How can, then, grant of a loan from time-to-time totalling Rs. 90 crores by Congress Party to Associated Journals Limited (company closely associated with Congress Party since 1937 and espousing the ideology of Congress) be considered a criminal offence? This loan was duly disclosed in books of accounts of Congress Party, duly audited and submitted to Election Commission of India.

Even Election Commission, vide letter dated 06.11.2012, wrote to Subramanian Swamy clarifying that there is no provision in Representation of Peoples Act that prohibits or controls expenditure by a political party. Allegation of Swamy/BJP of a criminal offence is, thus, patently false.

3. This Rs. 90 crores loan given to ‘National Herald’ was not possible to be repaid by ‘National Herald’ and its parent company Associated Journals Ltd. Hence, this Rs. 90 crores loan was converted into equity shares of Associated Journals Ltd. As Indian National Congress cannot own equity shares, the equity were allotted to ‘Young Indian’, a Section-25 ‘Not-For-Profit’ company.

Smt. Sonia Gandhi, Shri Rahul Gandhi, late Shri Oscar Fernandes, Late Shri Motilal Vohra, Shri Suman Dubey etc. are Managing Committee members of this ‘Not-For-Profit’ company. Shareholders/Managing Committee members of a ‘Not-For-Profit’ company are prohibited by law from getting any dividend, profit, salary or any other financial benefit. Therefore, question of any gain or profit or financial benefit to either Smt. Sonia Gandhi/Shri Rahul Gandhi or any other person in ‘Young Indian’ does not arise. Claim of Swamy/BJP of illegal gain or profit or financial benefit is, therefore, inherently false.

4. All income and all assets of ‘National Herald’ continue to remain exclusive property of Associated Journals Limited. Reason is very simple. Assets are owned by the company i.e. Associated Journals Limited and not any shareholder. No one has transferred any movable or immovable property/assets of Associated Journals Limited nor has ‘Young Indian’ withdrawn a single rupee from Associated Journals Limited.

Even though ‘Young Indian’ controls Associated Journals Limited (as it owns 99% shares), it cannot give a single rupee to any of its Managing Committee members because it is a ‘Not-For-Profit’ company.

Even if ‘Young Indian’ is liquidated/closed by Managing Committee members, all proceeds thereof can only go to a ‘Not-For-Profit’ company and can never be legally distributed among its shareholders/Managing Committee members. This, in fact, protects the assets/property of Associated Journals Limited for all times to come as its property can never be sold and utilized by individuals and will always remain with a ‘Not-For-Profit’ company. In such an event, where is the question of committing any crime or making personal gains?

5. The intention of Smt. Sonia Gandhi, Shri Rahul Gandhi and our leadership is clear. The intention is clearly to ensure that legacy of the Congress party that ‘National Herald’ embodies its values always remain afloat and the ‘National Herald’ remains our voice in articulating our ideals and principles.

6. This is a battle for truth. Truth has always emerged victorious and this time also it will. Shri Rahul Gandhi and the Congress leadership will emerge shining from this test (Agnipareeksha).