In a case of money laundering being looked into under the Prevention of Money Laundering Act (PMLA), 2002, the Directorate of Enforcement (ED) has issued an order to temporarily attach properties valued at Rs. 751.9 crore. The results of the investigation showed that M/s. Associated Journals Ltd. (AJL) is in possession of criminal proceeds totalling Rs. 661.69 Crore in the form of real estate located throughout several Indian cities, including Delhi, Mumbai, Lucknow, and M/s. Young Indian (YI) is in possession of criminal proceeds totalling Rs. 90.21 Crore in the form of investments in AJL equity shares.
Following the receipt of a private complaint through an order dated June 26, 2014, the Delhi Metropolitan Magistrate’s Hon. Court issued a procedure that served as the foundation for the ED’s money-laundering probe. The Honorable Court ruled that seven defendants, including M/s Young India, had prima facie committed the crimes of criminal conspiracy under section 120B of the IPC, dishonest misappropriation of property under section 403, cheating and dishonestly inducing the delivery of property under section 420 of the IPC, and criminal breach of trust under section 406 of the IPC.
The Honorable Court determined that the defendants organized a criminal plot to purchase properties valued at hundreds of crores of Indian rupees using M/s Young Indian, a special purpose entity. Concessionally priced property was granted to M/s Associated Journals Ltd. (AJL) in many Indian towns so that they could operate a newspaper.
In 2008, Associated Journals Ltd. (AJL) ceased publishing and began to use the properties for business endeavours. All India Congress Committee (AICC) demanded that AJL return a debt of Rs. 90.21 crore to them. However, AICC viewed this loan as unrecoverable from AJL and sold it to a newly established business, M/s Young Indian, for Rs. 50 lakh, having no means of supporting even that amount. By their actions, the Congress Party and Associated Journals Ltd. (AJL) office bearers defrauded both the party’s donors and stockholders.
According to the ED inquiry, YI asked that either the loan be repaid or that it be given equity shares in Associated Journals Ltd. (AJL) after obtaining the Rs. 90.21 crore loan from AICC. An EGM was called by AJL, and a resolution to raise share capital and issue new shares to YI valued at Rs. 90.21 crores was approved. With this new share allocation, AJL became a subsidiary of YI and the stake of over a thousand stockholders was reduced to only 1%. YI also assumed command over AJL’s properties. Further research is now being conducted.
