Latest NorthEast India News | ED seizes assets worth Rs 751.9 crore in probe against Congress-linked companies

Probe agency Enforcement Directorate (ED) seized assets worth Rs 751.9 crore in an investigation against Congress-linked entities Associated Journals Limited, and Young Indian in connection with a money laundering case.

The ED started the money-laundering investigation based on a court order following a complaint in 2014.

A Delhi court concluded that seven accused persons, including Young India, committed offenses like criminal breach of trust, cheating, dishonest misappropriation of property, and criminal conspiracy.

It was found that there was a conspiracy to acquire properties worth hundreds of crores of AJL through Young Indian. AJL, which received land at concessional rates for publishing newspapers, closed its operations in 2008 and used the properties for commercial purposes.

AJL had to repay a loan of Rs 90.21 crore to the All India Congress Committee (AICC).

However, AICC treated the said loan of Rs 90.21 crore as non-recoverable from AJL and sold it for Rs 50 lakh to a newly incorporated company, Young Indian, without any source of income to pay even Rs 50 lakh.

By their action, the shareholders of AJL as well as donors of Congress were cheated by the office bearers of AJL and Congress, the court had said.

According to the ED’s investigation, after purchasing the loan of Rs 90.21 crore from AICC, Young Indian demanded either repayment of the loan or allotment of equity shares of AJL to it.

AJL held an Extraordinary General Meeting (EGM) and passed a resolution to increase share capital and issue fresh shares worth Rs.90.21 crore to YI.

With this fresh allotment of shares, the shareholding of more than 1,000 shareholders was reduced to a mere 1 per cent and AJL became a subsidiary company of YI, which also took control over properties of AJL.