New Delhi: The Enforcement Directorate (ED) has alleged that Congress leaders Sonia Gandhi and Rahul Gandhi illegally gained Rs 142 crore through criminal proceeds in the National Herald money laundering case. The Rouse Avenue Court has issued notices to Sonia Gandhi, Rahul Gandhi, Sam Pitroda, and others involved.
According to the agency, the mother-son duo, through their company Young Indian, illegally acquired assets of Associated Journals Limited (AJL)—the publisher of the National Herald—worth over Rs 755 crore. Young Indian, in which Sonia and Rahul Gandhi hold a 76% stake, purchased AJL properties valued at Rs 90.25 crore for just Rs 50 lakh, indicating a breach of trust. The ED contends that rental income of Rs 142 crore linked to these properties should be treated as proceeds of crime.
This case forms part of a broader money laundering investigation, where the ED filed a chargesheet last month accusing Sonia Gandhi, Rahul Gandhi, and others of laundering Rs 988 crore. The agency, relying on a 2017 Income Tax Department assessment, alleges a criminal conspiracy between senior Congress leaders, AJL, and Young Indian to unlawfully seize AJL’s assets estimated to be worth around Rs 2,000 crore. These properties include prime real estate in Delhi, Mumbai, Lucknow, Patna, and other cities.
The ED further alleges that instead of repaying a Rs 90.21 crore loan, AJL converted the debt into equity shares transferred to Young Indian in 2011, granting Young Indian full control over AJL and its valuable properties without paying their true market value. The agency also accused Young Indian of receiving fake donations totaling Rs 18.12 crore during 2017-18 to settle income tax dues, a scheme reportedly orchestrated by senior Congress leaders.
Sonia Gandhi, then AICC President, is accused of misusing her position to facilitate the loan-to-equity conversion without proper scrutiny or payment, fully aware of the illegal scheme. Rahul Gandhi, who became a director of Young Indian in 2010 and holds 38% shares, is said to have played an active role in the conversion process, including sending demand letters before the loan was officially transferred. During questioning, Rahul Gandhi reportedly tried to shift blame onto other party leaders.
The ED has provisionally attached AJL properties worth Rs 751.91 crore under an order dated November 20, 2023. AJL and Young Indian have challenged this attachment, and the matter is pending before the Appellate Tribunal.
The National Herald newspaper, founded in 1938 by Jawaharlal Nehru, was once the mouthpiece of the Congress party but ceased publication in 2008 due to financial difficulties, leaving AJL heavily indebted to the party. BJP leader Subramanian Swamy originally filed complaints alleging fraudulent acquisition of AJL properties by the Gandhi family through Young Indian.
The Congress party has yet to issue an official response to the latest ED allegations but has previously dismissed the case as a politically motivated vendetta targeting opposition leaders.
