Congress in soup

The order of the Delhi High Court dismissing the pleas of Sonia and Rahul Gandhi challenging the summons of a trial court in the National Herald case is a setback for the Congress and could impact on the GST bill. The Narendra Modi government needs the Congress to ensure smooth passage of the bill in the upper house. The Prime Minister had extended an olive branch to the Opposition and as a consequence one round of talks was held with Congress President and former Prime Minister Manmohan Singh. All that could go down the drain if the Congress decides that now is the time for all good members to come to the aid of the party. The political sour point in this episode is that the probe into the case was initiated by BJP leader Subramanium Swamy, who thrives on political theatre.

But there is more to the case and it would be difficult for the Congress or the Gandhis to dismiss it as a political ploy by the BJP. It seems Swamy has hit the nail on the head this time and now that he has the backing of the high court the Congress would find it difficult to shake this one off.

The case in question is the take-over of the National Herald, which had ceased publication in 2008 due to a resource crunch. The newspaper was started in 1937 by Associated Journals Ltd (AJL) as the mouthpiece of the Indian National Congress. It received the support of Jawaharlal Nehru and continued publication even after the country became independent in 1947. After it ceased publication in 2008 a loan of Rs 90 crore was extended to it by the Congress. In 2010 a company called Young India in which Sonia and Rahul owned 76 per cent shares and the rest owned by Motilal Vohra and Oscar Fernandes offered to take over the Rs 90 crore loan. In the same year AJL allots a large chunk of shares to YI in lieu of the debt owned to the Congress. YI not only gains complete control of AJL but also takes over assets worth around Rs 2,000 crore. In 2014 Swamy filed his complaint alleging that the Gandhi siphoned off AJL's funds.

The allegations made by Swamy might not have been taken seriously but for the order of the high court. The case is not only a legal challenge to the Gandhi family but will impact on the fortunes of the Congress, which could crumble without the strong presence of its first family. The case also brings back memories of the Bofors episode which brought down Rajiv Gandhi. The crux of the case is that the Gandhi family took control of assets valued at Rs 2,000 crore for a pittance. It is a charge that still needs to be proved, but the very fact that the Gandhis have not been exempted from appearing in the trial court will bring more scrutiny. The order will be challenged in the Supreme Court, but the equation has changed and the Congress is on the defence.

More than arguing in court, the Gandhis and the Congress will have to explain to the people how and why it decided to take over AJL. It is either an underhand takeover or a genuine effort to use the assets for charitable work. The Gandhis need to convince the people it is the latter, if they do not want to go down the Bofors road, once again.