National Herald: No allegations of personal payment of benefits to Young Indian Directors, Subramanian Swamy

Subramanian Swamy today clarified that in his complaint in the National Herald case, he has not levelled any allegations of personal payment of rent, emoluments and benefits to the Directors of Young Indian from the owners of National Herald newspaper, Associated Journals Ltd (AJL)..The statement was made by Swamy during his cross-examination in the National Herald case before Additional Chief Metropolitan Magistrate Vishal Pahuja..The National Herald case pertains to the assignment of a Rs. 90 crore loan advanced by the Congress party to Associated Journals Ltd (AJL) – owner of the National Herald – to Young Indian for a consideration of Rs. 50 lakh..In his private complaint, Subramanian Swamy has accused Young Indian as well as Rahul Gandhi, Sonia Gandhi, and other Congress leaders, of cheating, criminal conspiracy, criminal breach of trust and misappropriation of property..Swamy has also alleged that a rental income of Rs 60 lakh which was accruing to AJL from the Herald House property at ITO was being transferred to the account of Young Indian..Appearing for accused, Rahul and Sonia Gandhi who are Directors of Young Indian, Senior Advocate RS Cheema today asked Swamy,“In your pre summoning deposition dated 23.06.2014 Ex. CW1/D, you have deposed: ‘Further by becoming the Directors of YIL, the accused persons have duly enriched themselves as the properties of the AJL have been given on rent. In my view, YIL is a sham company and is acting as a special purpose vehicle for acquiring control over Rs 2000 crores worth of assets of the AJL. Also the Directors are deriving all the emoluments/benefits as Directors of a Private Limited Company which is not carrying on any business/commercial activity and has authorizied capital of just Rs 5 lakh. Thus, all the emoluments/benefits being derived by the accused from YIL have in effect originated from the assets of the AJL.’Hence, in your deposition you are levelling specific allegations of personal payment of rent, emoluments, benefits to the Directors of YIL as a result of transfer of income legitimately accuring to AJL?”.In response, Swamy said,.“I deny levelling allegations of personal payment of rent, emoluments, benefits of the Directors of YIL.”Swamy.Swamy then went on to deny a series of suggestions put to him during the proceedings.“It is wrong to suggest that I am making palpably and patently false statement today to the fact that I have never averred and alleged that Directors of YI derived personally any rent, emoluments or benefits from the income or assets of AJL.It is also incorrect that I levelled such allegations in the complaint as well as my deposition at the stage of adducing pre summoning evidence and I am now taking a contrary stand because such allegations were false to my knowledge and without any evidence.It is further wrong to suggest that I procured the summoning order by making false allegations in this regard.”s further wrong to suggest that I procured the summoning order by making false allegations in this regard.”. Swamy also acknowledged that during his examination-in-chief at the pre-charge stage, he did not state that Young Indian was a charitable company under Section 25 of the Companies Act, 1956..“I did not consider it material to mention it as Section 25 of the Companies Act as I have already mentioned it in my complaint”.Swamy.It was further recorded on Swamy’s behalf,“It is wrong to suggest that I intentionally maintained a studied silence regarding the true character of YI as a charitable company because the same militates against the allegations of criminal misappropriation.It is further wrong to suggest that I intentionally described YI as a privately owned company in my examination in chief instead of giving its true description.”.The matter would be heard next on March 21..Read the live-account of the cross-examination here..Read the transcript of the cross-examination: