New Delhi: Janata Party president Subramanian Swamy on Thursday targeted UPA chairperson Sonia and Gandhi and Congress general secretary Rahul Gandhi accusing them of converting a public firm into a private company. He said that Sonia and Rahul formed a private company named Young Indian and acquired a public limited company, the Associated Journals Limited.

The Associated Journals Ltd is the owner of National Herald and Quami Awaz newspapers and all high value real estate property in Delhi and other places in Uttar Pradesh associated with it. Swamy alleged that the deal between Young Indian and Associated Journals Ltd was a "fraud committed in order to grab the Herald House in Delhi, that is located in a hub and is valued at about Rs 1600 crore.

Statement of Dr. Subramanian Swamy, President of the Janata Party & former Union Cabinet Minister made in New Delhi on November 1,2012.

1. Mrs. Sonia Gandhi and Rahul Gandhi had floated a Section 25 private company called Young Indian, and acquired the public limited company, the Associated Journals Ltd., which is the owner of National Herald and Quami Awaz Newspapers, and all high value real estate property in Delhi and other places in Uttar Pradesh of the said company. The deal is a sham, bogus, and a violation of several laws. It is a fraud committed in order to grab the Herald House in Delhi, that is located in a hub and which is valued at about Rs.1600 crores.

2. The first dubious fact of the AJ Company RoC details is that Jawahar Lal Nehru, Indira, Feroze Gandhi, GD Birla and other like noted deceased person, are shown as current shareholders! In fact 80 per cent of the original shareholders are no more alive So too many of the defunct firms, including several companies having dubious addresses in Kolkata, are shown as shareholders of the Associated Journals Ltd.

3. The second dubious fact is the acquisition of the associated Journals Ltld. Judging by documents filed with RoC it is wholly illegal. On February 26, 2011, the Board of AJ Pvt. Ltd. passed a Resolution approving that All India Congress Committee 9AICC) had loans to the Company unsecured and for zero interest rate to extinguish the liability of the company of more than Rs.90 crores. It is illegal for a political party to give loans to any company. The Resolution also resolved that in lieu of this deal with AICC, the Board decided to allot all AJ's nine crore shares, of Rs.10 each to Young Indian, the private company of Sonia Gandhi and Rahul Gandhi, where both together more than three fourths of the total shares and fully control the said Young Indian Company.

4. The third dubious fact is that Young Indian filed statements with the RoC disclosing that the shareholders meeting was held in Sonia Gandhi's Government allotted 10, Janpath. This is violation of the law since the 10, Janpath, New Delhi Government accommodation cannot be used for commercial purposes and business.

5. The fourth dubious fact is that the Rs.90 crore liability of The associated Journals was owned by Young Indian for a mere Rs.50 lakhs!

6. Thus the deal was to grab the Rs.1600 crore worth Herald House and other properties of the National Herald/Quami Awaz in Delhi and in different part of UP for a commitment to pay Rs.50 lakh to AICC for the Rs.90 crores advanced as unsecured zero interest loan.

7. Therefore, I urge immediate institution of a SFIO/CBI probe into this dubious stinking deal between Young Indian and The Associated Journals as also the illegality of the AICC in giving a loan to a private company in reckless cronyism since the AICC President is Ms. Sonia Gandhi and General Secretary Rahul Gandhi who are also owners of Young Indian, the beneficiary. More curiously, the associated Journals Ltd.'s Chairman Shri Motilal Vore is also the Treasurer of the AICC!

8. In his election affidavit on assets and liabilities, Mr. Rahul Gandhi had failed to inform that he owned 38 per cent share of a company he had formed named Young Indian with his mother, Ms. Sonia Gandhi, who also owned 38 per cent of the shares.

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