Congress spokesman Abhishek Singhvi called it a “weird case of money laundering in which no money is involved”. He said the company AJL had commercial problems and Congress gave it a loan of Rs 90 crore as financial support
“AJL did what every company in India and abroad does, it converted its debt into equity. This debt of Rs 90 crore was assigned to a new company ‘Young India’, so that the books of AJL became debt free. ‘Young India’ was created under a special provision of the Companies Act, Section 25, which has two very vital conditions. It is a not-for-profit company and no dividends can be given to its shareholders and directors. AJL continues to hold Herald and Young Indian has the share holding. There is no transfer of any asset. So, where is money laundering?” Singhvi said.
He said the ED had closed the case in 2015, but the government changed the agency head and got a new opinion to reopen the case, and has now issued the summonses after seven years. “This is a part of a larger disease. A disease, which will consume the ruling party ultimately. The disease is one of attacking every political party purely on vendetta terms, from Kashmir to Kanyakumari, from Gujarat to West Bengal,” he said.