New Delhi [India], April 21 (ANI): Senior Congress leader and former Finance Minister P Chidambaram on Monday strongly defended the party’s stand in the National Herald case, calling the Enforcement Directorate’s (ED) action a “blatant abuse of power” aimed at targeting Sonia Gandhi and Rahul Gandhi.
Addressing a press conference here today, Chidambaram, citing detailed financial and legal facts, asserted that there is no evidence of money laundering or financial impropriety, and termed the ED’s chargesheet a politically motivated attack orchestrated by the ruling establishment to malign the principal Opposition party.
“National Herald, Navjeevan and Kaumi Azad are the symbols of the freedom struggle. It is the duty of every Indian to preserve and cherish these symbols. National Herald is owned by Associate Journals Limited, a company registered in 1937-38 and is a public limited company. AJL holds six immovable properties in India. The property in Lucknow alone is a freely hold property. The others in Delhi, Panchkula, Mumbai, Patna and Indore are leasehold properties allotted by the government on the condition that the property cannot be sold,” he said.
While highlighting that AJL incurred huge losses, Chidamabram said, “AJL and National Herald could not pay taxes, statutory dues and wages and salaries. The outstanding liability of the AJL was huge. Between 2002 and 2011, the Congress party stepped in and advanced money in small tranches, by cheques, amounting to Rs 90 crore. The monies were used to pay the outstanding liabilities, including wages and salaries.”
Chidamabaram pointed out that AJL was restructured after legal advice was taken on the matter.
“AJL was a debt-ridden company. On legal advice, it was decided to restructure the company. In 2010, a new company, Young Indian, was formed as a not-for-profit company under section 25 of the Companies Act. Young Indian had four shareholders, all of them senior office bearers of the Congress party. YI took over the Rs 90 crore loan advanced by the Congress party to AJL after paying a consideration of Rs 50 lakhs,” he pointed out.
“Thereafter, Young India became the lender of AJL. Since the loan was irrevocable for AJL, it was decided that the loan would be converted into equity, and accordingly, equity shares were issued by AJL to Young India,” he said.
Chidambaram pointed out that the conversion of debt into equity is a well-known instrument of restructuring companies.
“Banks do it regularly. Recently, the Government of India converted the liability of Rs 36,000 crore owed by Vodafone India to the government into equity. Government was the lender and the loan of 36,000 crores was converted into equity, and the government’s equity in Vodafone India is now 48.99 per cent,” the Congress leader said.
He emphasised that not a single rupee has been paid by Young Indian to its directors or shareholders.
“As I said, Young India is not a not-for-profit company. It does not make profits, but even if it does, under section 25 of the Companies Act and now section 8 of the new act, it cannot give or distribute salaries or dividends to its shareholders. Since incorporation, not a single rupee has been paid by Young India to its directors or shareholders,” he said.
P Chidambaram recalled that in 2013, a private complaint was lodged against the directors of Young Indian, alleging cheating and conspiracy.
“The income tax department has valued the property of AJL at Rs 413 crores. In 2013, an individual complainant lodged a private complaint against the directors of Young India, alleging cheating, conspiracy etc. At the stage of cross-examination of the complainant, he himself filed an appeal in about 2020 to the Delhi High Court and obtained a stay on further proceedings in the Trial Court. Hence, effectively, the criminal case is stayed since 2020,” he said.
“In 2023, the ED registered a case under PMLA, presumably based on the criminal case started on a private complaint pending before the trial court. ED has filed a complaint commonly known as a Chargesheet under PMLA on April 9, 2025,” Chidambaram said.
Further, the Congress leader highlighted that AJL now publishes the three newspapers online, adding, “It also hosts a number of websites and social media platforms. AJL’s media outlets have a vast digital presence.”
“These are the facts, where is the crime? Where is the tainted money? Where is the offence of money laundering? It is elementary that there is no transaction of money. Without money, there are no ‘proceeds of crime’. Without ‘proceeds of crime’, there is no money laundering and without money laundering, the ED has no jurisdiction,” Chidambaram said.
He further said that the assault is being carried out on the integrity and reputation of Sonia Gandhi, and Rahul Gandhi is a blatant abuse of power.
“On the facts of this case, it is clear that the ED, at the behest of its political masters, is carrying on a vendetta against the leaders of the principal Opposition party, the Congress,” P Chidambaram said.
Asserting that the Congress will not sit silent, he said, “The entire Congress party will resist and fight back and defeat this political assault on its leaders, Sonia Gandhi and Rahul Gandhi. Truth will prevail. Justice will prevail. We will prevail.” (ANI)
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