Three different versions of the National Herald case were put forth on Friday – those of the embattled Congress, the BJP and former Law Minister Shanti Bhushan.
Bhushan maintained that the transfer of shares of Associated Journals Ltd (AJL) to the Sonia and Rahul Gandhi-controlled Young Indian Limited (YIL) was “totally illegal”. The Congress maintained that the transfer of shares was part of a “financial revival plan” in accordance with the primary objectives behind founding Associated Journals Ltd. The BJP put out a collection of articles, all attacking the Congress, in a booklet form.
Bhushan’s contention was that his father had shares in AJL and that the shareholders were not informed of the transfer. “I don’t think any notice was sent to any of the shareholders. The transfer of control and shares from a large number of patriotic people to a family is ‘totally illegal’. A large number of patriotic Indians had contributed for a public cause. Their right has been taken away and transferred to a close held company, namely Young India, in which there are only four shareholders – Sonia Gandhi 38 per cent, Rahul Gandhi 38 per cent, MotiLal Vora 12 per cent and Oscar Fernandes 12 per cent,” Bhushan told agencies here.
Bhushan said his father had bought a large number of shares of AJL in 1938, which he had inherited. “National Herald was started in 1937-38. My father was a Congressman and, therefore, like all well-to-do Congressmen, he had also subscribed to the creation of the National Herald and he had paid for a large number of shares. These facts have to be asserted from the Registrar of Companies. His name still continues to be on the shareholders’ list,” he added.
The Congress, on its part, put out FAQs on the case, underlining that all shareholders were informed. “All shareholders (of Associated Journals Ltd.) present and voting at the extraordinary general meeting in 2011 unanimously approved issuance of fresh equity to Young Indian to extinguish debt of AJL. The question of cheating shareholders does not arise,” the Congress says in its list of answers to the FAQs.
The argument forwarded by the Congress was that while all assets and properties of AJL continue to remain with the company, Young Indian, being a non-profit Section 25 company, as the major shareholder of AJL, enhances the safeguards on the properties of AJL.
Cong on why the loan to AJL
The Congress gave details of why the party gave loans worth ₹90 crore to AJL. “The Congress financially supported AJL over several decades through the financial ill-health of the company. This reflected the party’s commitment to support AJL, the voice of the freedom movement. The founding document of AJL from 1937, i.e. the company’s Memorandum of Association states in Object (t): ‘The policy of any newspaper, periodical, magazine or journal issued by the company shall generally be in accordance with the policy and principles of the Indian National Congress.’ This demonstrates the inextricable link between AJL and the Congress from AJL’s inception. The Congress party sought to fulfill its own objectives by supporting AJL,” said the Congress.
BJP strategy
The BJP planned to distribute a booklet titled Family Greed and National Blackmail, which is compilation of articles attacking the Congress on the National Herald case. The party will distribute the booklet among its MPs and leaders across the country to “inform” them on the issue and give them “talking points”, BJP Parliamentary Party Office Secretary Balasubrahmanyam Kamarsu said.