Young Indian Highlights Contradiction in Income-Tax Findings in National Herald Case

In a pivotal courtroom hearing today, counsel for Young Indian Private Limited contended that the Income-Tax Department categorically labelled the purported ₹90 crore loan to Associated Journals Ltd (AJL), publisher of the National Herald, as a sham transaction, noting that “monies never flew.”

The petitioner-private company argued that this stance directly conflicts with Enforcement Directorate’s (EDs) core allegations and raises fundamental doubts over the money laundering charges.

The ED, which has indicted senior Congress leaders, including Sonia and Rahul Gandhi, alongside figures like Motilal Vora, Oscar Fernandes, Suman Dubey, and Sam Pitroda, asserts that Young Indian, of which the Gandhis hold a 76% stake, orchestrated a fraudulent takeover of AJL’s assets valued at over ₹2,000 crore in exchange for the ₹90 crore loan.

However, defence counsel emphasised today's courtroom submission:

“If two arms of the government are taking a different stance, how is the offence possible?”

Defence criticised the ED’s Enforcement Case Information Report (ECIR), asserting that the agency launched an investigation without obtaining a certified copy of the underlying complaint from BJP leader Subramanian Swamy and neglected to substantively test the veracity of the allegations.

Senior advocate Pramod Kumar Dubey likened the ED’s approach to “missing the trees for the woods”. Additional arguments from Young Indian and co-accused suggest the basis for the ₹2,000 crore valuation is unclear and that documents related to loan repayment and interest were unjustly withheld.

Inputs from PTI