Major jolt to the Gandhis in National Herald Case as Delhi HC allows IT probe in Young Indian

The Delhi High Court on Friday paved the way for the Income Tax Department to investigate the transactions of the Congress party’s Young Indian Private Limited..A Bench of Justices S Muralidhar and Chander Shekhar dismissed the application of the Company challenging the said assessment..Young Indian Private Limited had approached the Delhi High Court seeking a stay on the Income Tax investigation and quashing of notices sent by the tax authorities..The Bench stated:.“Young Indian Private Limited could not be arrogant and refuse to submit the documents as required.”.Sensing the tone of the Court, Senior Advocate Abhishek Manu Singhvi, appearing for Young Indian, withdrew the petition..Young Indian is a private limited company by guarantee with Congress President Sonia Gandhi and Vice President Rahul Gandhi holding more than 75% of its shares. Both are also directors in the Company..In November 2012, Subramanian Swamy, now a BJP MP, filed a private complaint alleging that both Sonia Gandhi and Rahul Gandhi are guilty of committing fraud and land grabbing by acquiring a publicly limited company called Associated Journals Limited (publisher of National Herald and other newspapers) through their owned private company, Young Indian..Associated Journals Limited owned property in various locations of Delhi, Mumbai, Panchkula etc..Swamy also alleged that the Congress Party lent more than Rs. 90 crore to Associated Journals Limited for commercial purposes at zero interest, which is prohibited as per Section 29A to C of the Representation of People Act, 1951 and Section 13A of Income Tax Act, 1961..The Congress reacted by saying that the “Court observed that all points raised in the writ can be raised before the I.T. Dept, because of which the petition was withdrawn.”.Earlier, the Congress Party had termed Subramanian Swamy’s complaint as “a roving and fishing enquiry” that is not permissible under the law.