Shareholders do not become owners: Sibal on ED order on Herald case

After the Enforcement Directorate's action to attach properties worth Rs 751 crores in the National Herald Case, Rajya Sabha MP Kapil Sibal said that the ED is guided by a panel of lawyers and asked ED to specify the law which says that shareholders become owners of assets.

"ED should know what the law says. Properties are owned by companies. There are charges that Young India has taken over 99 per cent shares of AJL. Shareholders do not own properties, properties are owned by companies. Therefore, Young Indians became owners of the assets of Rs 752 crore of AJL is wrong on the basis of law. Since Shareholders do not become owners, Young Indian is a section 25 company which means it is not for profit company. If Young India became a shareholder of AJL, since both the companies never accused each other, then whose breach of trust occurred? Tell us which law says that shareholders become owners of assets," said Rajya Sabha MP Kabil Sibal.

The Directorate of Enforcement (ED) has issued an order to provisionally attach properties worth Rs. 751.9 Crore in a money-laundering case investigated under the Prevention of Money Laundering Act (PMLA), 2002 against Associated Journals Limited (AJL) and Young Indian (YI) on November 21.

Investigation revealed that Associated Journals Ltd. (AJL) is in possession of proceeds of crime in the form of immovable properties spread across many cities of India such as Delhi, Mumbai and Lucknow to the tune of Rs. 661.69 Crore and Young Indian (YI) is in possession of proceeds of crime to the tune of Rs. 90.21 Crore in the form of investment in equity shares of AJL.

Earlier, Congress President Mallikarjun Kharge slammed the Bharatiya Janata Party over ED's action to attach properties worth 751 crores in the National Herald Case.

"Reports of attachment of AJL's properties by the Enforcement Directorate are a clear indication of the BJP's panic in the ongoing elections. Staring at defeat in Chhattisgarh, Madhya Pradesh, Rajasthan, Telangana and Mizoram, the BJP Govt feels compelled to misuse its agencies. This attempt too will fail and the BJP will be defeated in the polls. National Herald was the voice of the Freedom Movement. The Indian National Congress is proud of its role in the Freedom Movement," Mallikarjun Kharge said on X.

Further, the Congress President referred to a quote from former Prime Minister Jawahar Lal Nehru and said that the party has full faith in the wisdom of the people of India.

"We are reminded of Pandit Nehru's quote on the masthead of the newspaper -- "Freedom is in peril, Defend it with all your might" We will continue to fight for the ideals on which our Democratic Republic is founded. The Indian National Congress has full faith in the wisdom of the people of India to see through this nefarious game," Mallikarjun Kharge added.

Congress leader KC Venugopal Rao also took to X and said that the case has been made-up and shows shameful vendetta politics.

"The ED attaching properties of AJL and Young Indian in a completely frivolous and made-up case is shameful vendetta politics. The BJP must realise that going after India's largest opposition party is akin to going after Indian democracy," Venugopal said.

KC Venugopal further accused the BJP of murdering Democracy.

"They are staring at a historic loss in the ongoing 5 state elections and in the 2024 Lok Sabha elections. If they think they can intimidate us or tarnish our reputation in the people's eyes, they are grossly mistaken. The BJP and its allied agencies are the murderers of Indian democracy. 1.4 billion Indians will give a befitting reply to this fascist politics of revenge and intimidation," KC Venugopal added.

ED had initiated a money-laundering investigation on the basis of a process issued by the Court of Metropolitan Magistrate of Delhi after taking cognizance of a private complaint vide order dated June 26, 2014.