This Article is From Aug 05, 2014

National Herald Case: Arun Jaitley Misleading People, Says Congress

National Herald Case: Arun Jaitley Misleading People, Says Congress

Congress leaders Rahul Gandhi and Sonia Gandhi

New Delhi: The "National Herald case" involving a tax inquiry against Sonia and Rahul Gandhi - which the Congress describes as a witch-hunt by the BJP government - is being heard by the Delhi High Court amid a massive row between the country's main political rivals.

The Congress today reacted sharply to Finance Minister Arun Jaitley's comment to NDTV that the case against the Gandhis is "prima facie strong".

Congress spokesperson Manish Tewari said, "The fact that the Finance Minister chose to comment reinforces the perception that here is a government which is motivated both by malice and vendetta in order to try and settle political scores."

In an interview to NDTV on Monday, Mr Jaitley alleged that the Congress leaders had given a 96 crore loan out of tax exempted money to a newspaper company - National Herald - which, he said, was taken over by a property company.

"So today, money collected for an exempted purpose passes from a newspaper which doesn't exist and ends up with a company which only owns property and earns rents," Mr Jaitley said. (Watch: Arun Jaitley's Interview)

The National Herald newspaper, which was set up before independence by Jawaharlal Nehru, was closed down in 2008 by Mrs Gandhi, whose husband Rajiv was Mr Nehru's grandson. A firm called Young Indian acquired its publisher, Associated Journals. A majority stake in Young Indian is owned by the Gandhis.

A complaint by BJP leader Subramanian Swamy alleges that the Congress broke the law by loaning money to Young Indian, and that the Gandhis aimed to grab property worth thousands of crores that belonged to the publishing company. (read: Gandhis challenge order that summons them to Delhi court)

To the Congress' argument that Young Indian is not a property company, the Finance Minister said, "The Congress party's function was not to collect rents from properties...The tax department is entitled to know that if money is collected for an exempted purpose, then how has the money landed for a non-exempted purpose?" (Read: Highlights of Arun Jaitley's Interview)

Congress spokesperson Sanjay Jha said, "Just because an NGO owns property doesn't make it a property firm." (read: Sonia Gandhi charges government with witch-hunt)
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