Key Points:
- Enforcement Directorate (ED) alleges Sonia Gandhi and Rahul Gandhi received ₹142 crore as “proceeds of crime” in the National Herald money laundering case.
- ED claims the Gandhis, through Young Indian Limited, acquired Associated Journals Limited (AJL) assets worth over ₹2,000 crore for just ₹50 lakh.
- Properties worth ₹751.9 crore linked to the case were attached by ED in November 2023.
- The case stems from a complaint by BJP leader Subramanian Swamy, who alleges criminal conspiracy, cheating, and misappropriation.
- Delhi court is considering whether to take cognizance of the ED’s chargesheet; proceedings are ongoing.
New Delhi: The Enforcement Directorate (ED) has told a Delhi court that Congress leaders Sonia Gandhi and Rahul Gandhi benefited from ₹142 crore in “proceeds of crime” as part of its ongoing money laundering probe into the National Herald case. The central agency made this statement during preliminary hearings on whether the court should take cognizance of its recently filed chargesheet.
What Is the National Herald Case?
The National Herald case centers on allegations that senior Congress leaders orchestrated a complex financial scheme to acquire control of Associated Journals Limited (AJL) the publisher of the National Herald newspaper—through a company called Young Indian Limited (YIL), in which Sonia and Rahul Gandhi hold a combined 76% stake (38% each).
According to the ED, the Congress party provided an interest-free loan of ₹90.25 crore to AJL, which was later converted into equity and transferred to YIL for just ₹50 lakh. This move allegedly gave YIL and thus the Gandhis control over AJL’s extensive real estate assets, valued at over ₹2,000 crore at the time and now estimated at up to ₹5,000 crore.
ED’s Allegations and Court Proceedings
The ED alleges that Sonia and Rahul Gandhi not only acquired the “proceeds of crime” through this transaction but also continued to benefit from them until November 2023, when the agency attached properties worth ₹751.9 crore linked to AJL and YIL. The agency maintains that the definition of “proceeds of crime” extends to both the initial acquisition and the continued possession of these assets.
The case was initiated following a private complaint by BJP leader Subramanian Swamy in 2012, who accused the Gandhis and other Congress leaders of criminal conspiracy, cheating, and breach of trust in the acquisition of AJL by YIL. The ED began its formal probe in 2021 after a magistrate court took cognizance of Swamy’s complaint.
During the latest hearing, the court directed the ED to provide a copy of its chargesheet to Swamy, the original complainant. Legal counsel for Sonia and Rahul Gandhi requested more time to prepare their response to the charges.
What Happens Next?
The Delhi court is currently hearing arguments on whether to formally take cognizance of the ED’s chargesheet. If the court proceeds, Sonia Gandhi, Rahul Gandhi, and other accused could face trial under the Prevention of Money Laundering Act (PMLA), which carries a maximum sentence of seven years in prison.
The ED has alleged that Sonia and Rahul Gandhi benefited from ₹142 crore in proceeds of crime through the acquisition of AJL assets by Young Indian Limited, a company they control. The case, rooted in allegations of financial irregularities and money laundering, is now before a Delhi court, which will decide on the next steps as the legal battle continues.
