Maharashtra government allotted prime plot to Herald company, reveals RTI

NEW DELHI: Amid allegations that the Congress gave an interest-free loan to Associated Journals Ltd with an eye on its real estate assets, it now emerges that the company that owns the now defunct National Herald and Quami Awaz was allotted a prime plot of land by the Maharashtra government in suburban Mumbai.

Information accessed through RTI shows that the then state revenue minister Ashok Chavan, linked to the Adarsh scam, waived off an amount of Rs 3.75 crore due to the Associated Journal in 2001.

The land, reportedly worth Rs 250 crore, was allotted at a lease amount of Rs 1.31 crore for 30 years.

Congress leader Sonia Gandhi and Rahul Gandhi have been issued summons from a Delhi court over a complaint by BJP's Subramanian Swamy alleging that the Congress party gave an unsecured loan to Gandhi-controlled Young Indian Ltd to acquire National Herald's holding company- Associated Journals. Swamy has alleged misappropriation of assets worth Rs 2000 crore in the National Herald newspaper, which is now defunct. The Congress had dubbed the summons as a witch hunt.

In response to a RTI filed by Mumbai-based Anil Galgali, Maharashtra government admitted that it had allotted land in Bandra to Associated Journal in 1983 for Rs 1.31 crore for 30 years. However, the company did not observe one of the key conditions which was to commence construction in the plot within two years of it being allotted. It also did not pay the entire principal amount.

The government calculated interest of Rs 3.75 crore for these violations. But in 2001 the then revenue minister Ashok Chavan waived off the interest.

The plot was given for construction of press for news publication, a library and a research centre but this was not done. Galgali has now written to the Maharashtra CM Prithivaj Chavan seeking reversal of the waiver.

"Not only did Associated Journals not construct the press building and library, but it also managed to obtain repeated extensions from the state government while continuing to hold on to the 30-year lease, which now expires on December 22 this year. The market value of the land is Rs 250 crore," he added.