Cong admits to giving loan to help revive defunct paper

Late in the evening,after attacking Swamy all day but refusing to engage with specifics,the Congress conceded that the loan was indeed given.

A release issued by Congress general secretary Janardan Dwivedi said the party has done its duty by supporting Associated Journals to help initiate the process to nurse National Herald back to health.

“This support was extended by the Indian National Congress in the form of interest-free loans from which no commercial profit has accrued to INC,” the release said.

Earlier in Shimla,Jaitley said political parties and donors were exempt from income-tax,subject to the condition that the donations were used only for political purposes,not business or commercial operations. However,the board of directors of Associated Journals had passed a resolution on Feburary 26,2011,saying the AICC had given a loan of Rs 90 crore to the company floated by Sonia and Rahul Gandhi,which had acquired Associated Journals.

“Transfer of money like this by any political party to a company is in violation of the exemptions and electoral law,” Jaitley said. “The Congress must tell whether this loan was actually given or not… Instead of using adjectives like ‘baseless’ and ‘untrue’ it should give a specific reply to the public as the whole issue is about gross impropriety and illegality,” he said.

In Delhi,Congress spokesperson P C Chacko asked Swamy should sue Rahul and Sonia “if he has the guts”. “It is for those who make allegations to prove the charges. If there is a violation,let them take it to court.”

Information and Broadcasting Minister Manish Tewari decried the Janata Party chief’s “calumny” and the “tactics of  shoot and scoot”.

External Affairs Minister Salman Khurshid,who was earlier in charge of Corporate Affairs,said,“I am absolutely clear in my mind that there is absolutely no reason for anybody to put a question mark on this. If anything,this should be treated as an example of good governance,transparency and accountability rather than as an example of the opposite.”

Before Dwivedi’s release,Congress leaders maintained that Swamy’s charges were not worth replying to. Chacko warned that “bluff master (Swamy) will face the music”,but gave no categorical reply when asked if the Congress would sue him.

Swamy hit back: “Rahul should sue me instead of writing dirty letters. I am going to court as I have done in 2G and other cases. The court will ask me whether I have exhausted all options. That is why I have written to the Prime Minister and the Election Commission for action. I will give them some time,wait for their responses. After that I will go to court,” he said.

(With PTI)