Image Credit source: PTI
National Herald Case: Congress leader Rahul Gandhi has once again appeared before the ED in the case related to the National Herald case. Now section 25 is also being mentioned a lot in this case.
An alleged money laundering case involving the National Herald newspaper (National Herald Case) Former Congress President Rahul Gandhi has been questioned by the Enforcement Directorate (ED). On Monday, ED has questioned Rahul Gandhi for more than 10 hours and on Tuesday i.e. today again Rahul Gandhi (Rahul Gandhi) Appeared before ED. Congress workers protested across the country regarding the appearance of Rahul Gandhi, in which many senior Congress leaders also had to be detained. Due to the performance of the Congress and the appearance of Rahul Gandhi, there was a debate on the National Herald in social media and news channels and section 25 was also mentioned a lot in this debate.
In such a situation, the question is what is this section 25 and what does it have to do with the National Herald case. Apart from this, they also know that according to the law, what is written in section 25 and what kind of companies are formed in it. So know everything related to section 25…
What’s the matter?
Actually, the matter is related to Young India Limited and there are many questions regarding the funding of this company and its creation. It started in the year 2010. Rahul Gandhi was the Congress General Secretary at that time and he also became the director of this company. Its highest 38-38 percent shares were in the name of Rahul Gandhi and Sonia Gandhi. The other 24 per cent shareholders included Congress leader Motilal Vora, Oscar Fernandez, journalist Suman Dubey, and Congress leader Sam Pitroda. It is alleged that the Gandhi family acquired AJL by using Congress party funds and tried to encroach on the assets of this company worth 2000 crores.
Then why discuss section 25?
The reason for the section 25 coming in the discussion in this case is that Sonia Gandhi and her associates had launched the non-profit company Young Indian in November 2010 under section 25 itself. In such a situation, the rules related to this are being talked about. Subramanian Swamy has accused Sonia Gandhi and Rahul Gandhi of fraudulent acquisition of properties and it has been complained that Young India took over properties of AJL in Delhi-NCR, Lucknow, Mumbai and other cities.
What is section 25?
As per the Companies Act, 1956, a company formed under section 25 is the same as a company formed under section 8 under the Companies Act, 2013. According to a report in the Indian Express, it is a non-profit charitable company, whose purpose is to promote commerce, arts, science, religion, charity or any useful goal. Also, if there is any benefit from this, then it is not distributed among the members, while it is used to promote these subjects. Explain that section 8 of the Companies Act, 2013 covers many things like sports, education, research, social welfare and protection of environment.
However, it may be a public or a private company, but under section 25, its members in the company cannot accrue any benefit. Section 25 states that a constitution of the company is necessary and the profits are to be used only for the fulfillment of the objectives. Let us tell you that according to the information of the Ministry of Corporate Affairs, Government of India, a large number of companies have been formed under this section, including Azim Premji Foundation, Coca-Cola India Foundation and Amazon Academic Foundation etc.
Let us tell you that more such company is being built more than trust. People who donate from abroad rely more on these companies than on the trust.
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