Swamy moves EC to derecognise Congress

He is carrying out a ?propaganda of lies? and ?distorting? facts, says AICC General Secretary Janardhan Dwivedi

Janata Party chief Subramanian Swamy on Saturday moved the Election Commission (EC) to derecognise the Congress, alleging the party violated laws by providing a Rs 90-crore loan to a company that published the now-defunct National Herald newspaper.

The Congress, on its part, adopted a combative approach over the controversy on The Associated Journals issue, saying it has discharged its "political dharma" and that it was ready to contest any challenge in any fora for giving loan to support the newspaper.

The Bharatiya Janata Party (BJP) hoped the EC would take cognisance of Swamy's plea and also refused to buy the Congress argument that the loan was paid to propagate its ideology, alleging the deal appears to have been done more for the real estate value involved and "inadvertent" money laundering.

In a letter to the Election Commission, Swamy said Congress has "prima facie" committed an offence under electoral law as well as income tax law for which it is necessary to hold hearings and decide on derecognising the party. His petition to the EC comes as a follow-up to his charges against Congress President Sonia Gandhi and Rahul Gandhi over acquisition of Associated Journals that published the newspaper to which Congress gave a loan of over Rs 90 crore.

He had said Associated Journals obtained an unsecured loan of over Rs 90 crore from the All India Congress Committee (AICC) which he claimed was illegal under the Income Tax Act because a political party cannot give loans for commercial purposes.

“The written admission by senior Congress leader and spokesperson Janardhan Dwivedi in his press release dated November 2 admitted that Congress has loaned (a sum of more than Rs 90 crore) to a company incorporated under Section 3 of the Companies Act, 1956 by name Associated Journals Pvt Ltd.”

"This loan is in violation of the guidelines and rules that have to be mandatorily followed by political parties for registration as well as recognition. Section 29A to C of RPA and Section 13A of the IT Act do not make any provision for any political party to extend loans to companies with or without interest," Swamy said in the letter.

Meanwhile, All India Congress Committee General Secretary Janardan Dwivedi launched a hard-hitting offensive against Swamy and BJP for carrying out a "propaganda of lie" and "distorting" facts. Dwivedi said, "How can there be a commercial purpose as alleged when no interest was charged for the loan?"

Dwivedi also pointed out that the revival of National Herald had helped over 700 employees get their salary dues, provident fund and VRS benefits.

"Four hundred people working in the Associated Journals had become homeless while 300 workers in its Lucknow office had lost their jobs. We are proud that not only the salary dues of these 700 employees were paid off but even the VRS was given with all the benefits to those, who opted for it and and their provident funds were also paid," he said, wondering whether any other news organisation did all these for their employees.