National Herald case: Delhi HC asks Young Indian Pvt Ltd to deposit Rs 10 crore with tax department
The company had told the bench that it did not have enough funds to deposit Rs 249.15 crore as demanded by the tax authorities.
The Delhi High Court on Monday directed Young Indian Private Limited to deposit Rs 10 crore instead of Rs 249.15 crore in Income Tax proceedings against it, PTI reported. Congress’ Sonia and Rahul Gandhi are the major shareholders in Young Indian.
BJP leader Subramanian Swamy had accused the two Congress leaders of conspiracy and cheating with the aim to acquire properties and assets owned by the National Herald newspaper. According to Swamy, they had provided an interest-free loan of Rs 90.25 crore to Associated Journals Limited, publisher of three newspapers including the National Herald, and transferred the debt to Young Indian Limited for Rs 50 lakh.
The Income Tax Department had demanded that the company deposit Rs 249.15 crore for the financial year 2011-’12. In March, Young Indian had challenged the tax department’s demand and said that it does not have enough funds to deposit the money. The company said it will try to raise funds from the market, Times Now reported.
A bench of Justices S Ravindra Bhat and AK Chawla asked the company to deposit Rs five crore with the Income Tax Department by March 31 and the remaining amount by April 15. The bench also directed the tax authorities not to enforce the demand for Rs 249.15 crore. It asked the tax authorities to reply to the company’s plea challenging its demand.
The matter will be next heard on April 24.