• Under the IT laws, political outfits are granted exemption from IT payments for pursuing public interest.
• But Swamy’s allegation is that the Congress broke the law by loaning Rs 90 crore worth of Herald funds to a firm where majority stake is owned by the Gandhis.
• Swamy’s allegation is that Gandhis floated a firm called Young Indian Company which acquired Associated Journals Limited, the publisher of three newspapers, including the National Herald, an English daily founded and edited by Jawaharlal Nehru before he became India’s first Prime Minister.
• Under the IT law, political parties cannot extend loans for commercial purposes.

Congress president Sonia Gandhi has  said the BJP Government was practicing the policy of political vindictiveness with the Congress and this policy “would only help the Congress get back to power soon.” She was reacing to questions BJP leader Subramaniam Swamy’s allegations regarding misappropriation of National Herald’s funds by Sonia and her son Rahul Gandhi. Sonia confirmed that her party had received notices of the Income Tax Department asking the Congress why its tax exemption benefits should not be withdrawn.

Under the IT laws, political outfits are granted exemption from IT payments for pursuing public interest. But Swamy’s allegation is that the Congress broke the law by loaning Rs 90 crore worth of Herald funds to a firm where majority stake is owned by the Gandhis.

Under the IT law, political parties cannot extend loans for commercial purposes.

I&B Minister Prakash Javadekar today that though the BJP did not believe in political vendetta, the law had to take its course. Earlier, a local court had issued summons in the matter to both Sonia and Rahul.

Reacting to the case, Congress spokesperson Abhishek Manu Singhvi said, “We have received the notices and will respond at the right forum at the right time.” Singhvi is the legal adviser to Gandhis in this case. Swamy’s allegation is that Gandhis floated a firm called Young Indian Company which acquired Associated Journals Limited, the publisher of three newspapers, including the National Herald, an English daily founded and edited by Jawaharlal Nehru before he became India’s first Prime Minister.

The paper was shut down in 2008 by Sonia Gandhi. Swamy alleges that the Congress used its party fund to enable Young Indians to own Associated Journals and Gandhis aimed to grab property worth thousands of crores that actually belonged to Herald to extend public interest cause through publication.