National Herald Case In A Nut Shell
National herald (NH) was started during 1930 by Nehruji and was publishing news paper. During the course of time it accumulated land and wealth of 5000crs.
In 2000s it went into loss and had 90crs debt. NH’s Directors Sonia, Rahul, and Motilal Vora decided to sell it to Young India Ltd.
Now the funny part.
Young India’s directors were Sonia, Rahul, Oscar Fernandes and Motilal Vora. Deal was that young India would clear NH’s 90cr loan and in return get assets worth 5000 cr. To strike this deal Motilal Vora spoke to Motilal Vora because he was director of both companies.
Now comes the twist.
To clear the 90 cr debt, young Indian, asks Congress party to give loan of 90 cr. So congress calls a meeting , Party President, VP, General Secretary, Treasurer attends it. Who are these people ?? Sonia, Rahul, Oscar and Motilal Vora respectively. Congress gives loan. Who approves it, Treasurer, Motilal Vora.
So Congress Treasurer Vora, gives loan to young India, its director Vora takes it and gives it to NH director Vora.
Hold on the fun doesn’t stop here.
Next day congress party calls meeting, who attends it ?? Sonia, Rahul, Oscar, Vora. They decide that NH has done lot of service to the country during freedom fight, let’s write off the loan. So 90cr loan is written off.
Great. Young India with 36% share held by Sonia and Rahul each, rest owned by Oscar and Vora gets property worth 5000cr, including 11 stories flat at Bahadur Shah Zafar Marg in Delhi, which is rented out to passport office and other offices.
Wow this is what is called creation. Creating everything out of nothing. 5000crs out of thin air!!!!