The Enforcement Directorate (ED) has intensified its pursuit in the National Herald case, leveling significant accusations against Sonia Gandhi and Rahul Gandhi. In a recent hearing at the Rouse Avenue court, the ED asserted that the Gandhis "enjoyed" approximately ₹142 crore in proceeds of crime, with Additional Solicitor General SV Raju arguing that a "prima facie" case of money laundering has been established against them and others involved.

The core of the case revolves around alleged financial irregularities in a ₹90.25 crore loan from the Indian National Congress (INC) to Associated Journals Ltd (AJL), the publisher of the National Herald newspaper, and its subsequent transfer to Young Indian for a mere ₹50 lakh. The ED contends that this transaction was a criminal conspiracy aimed at misappropriating assets worth over ₹2,000 crore.

During the court proceedings, the ED's special counsel, Zoheb Hossain, emphasized that the Gandhis held 76% of Young Indian's shares. By paying only ₹50 lakh, Young Indian gained control over ₹90.25 crore, demonstrating the alleged offense of cheating. The ED also argued that the donors to the Congress party were the victims of this scheme. The agency claims that AICC funds, including public donations, were fraudulently used to transfer control of AJL's assets to YIL, which was beneficially owned by Sonia and Rahul Gandhi.

The ED's investigation has been ongoing since 2021, following a private complaint filed by BJP leader Subramanian Swamy in 2012, who accused the Gandhis of cheating, criminal misappropriation, and breach of trust in the acquisition of AJL by Young Indian Limited (YIL). In November 2023, the ED intensified its probe, attaching assets worth ₹751.9 crore linked to AJL and YIL.

The ED has filed a chargesheet against Sonia Gandhi, Rahul Gandhi, Sam Pitroda, Suman Dubey, Young Indian, and others, alleging offenses of money laundering stemming from the manipulation of AJL's finances and control. The court has scheduled daily hearings from July 2 to July 8 to further examine the ED's arguments and submissions from the defense. Senior Advocate Abhishek Manu Singhvi, representing the Gandhis, requested more time to review the extensive case records.

The National Herald newspaper was founded in 1938 by Jawaharlal Nehru and others to support India's independence movement. The Congress party disputes the ED's valuation of the assets, claiming they are worth approximately ₹350 crore. The ED maintains that the loan transfer and equity conversion constituted a money-laundering scheme, with the Gandhis not only acquiring the proceeds of crime but also continuing to hold them. The court has directed the ED to supply a copy of its chargesheet to Subramanian Swamy, based on whose complaint the case was originally lodged.