The Enforcement Directorate (ED) has intensified its pursuit in the National Herald case, alleging that Sonia Gandhi and Rahul Gandhi, prominent leaders of the Indian National Congress, received ₹142 crore as "proceeds of crime." This claim was presented to a Delhi court on Wednesday, marking a significant development in the ongoing money laundering investigation.
The ED's special counsel, Zoheb Hossain, informed the court that the rental income of ₹142 crore received by the accused individuals would be included as part of the alleged proceeds of crime. Hossain further stated that "the cognizance of the predicate offence has already taken place," and accused Sonia Gandhi, Rahul Gandhi, Suman Dubey, and Sam Pitroda of "breach of trust." He highlighted that the Gandhis owned 76% of Young Indian, and by paying ₹50 lakh to Associated Journals Limited (AJL), Young Indian obtained ₹90.25 crore.
The case stems from a private criminal complaint filed by BJP leader Subramanian Swamy in 2012, accusing Sonia and Rahul Gandhi of cheating, criminal misappropriation, and breach of trust in the acquisition of Associated Journals Limited (AJL) by Young Indian Limited (YIL). The ED initiated its investigation in 2021 after a magistrate court took cognizance of Swamy's complaint.
According to Swamy's complaint, the Gandhis had acquired AJL through Young Indian Limited by means of cheating, criminal misappropriation, and breach of trust. In 2008, AJL, burdened by heavy debt, stopped the publication of the National Herald, citing financial constraints. Two years later, AJL was formed with Sonia and Rahul Gandhi holding 38 per cent of shares each, jointly amounting 78 per cent. As AJL owed Rs 90.25 crore to the National Congress, the party transferred the debt to YIL for a mere Rs 50 lakh.
The ED's investigation has focused on the financial transactions between AJL, YIL, and the Indian National Congress (INC), alleging that the Gandhis and other accused individuals used YIL as a vehicle to gain control over AJL's assets, which are estimated to be worth over ₹2,000 crore. The agency claims that AICC funds, including public donations, were used to fraudulently transfer control of AJL's assets to YIL, beneficially owned by Sonia and Rahul Gandhi. The ED further alleges that AJL, YIL, and AICC cheated AJL's original shareholders and Congress donors by transferring assets to YIL.
In November 2023, the ED intensified its probe by attaching assets worth ₹751.9 crore linked to AJL and YIL. The Congress party disputes the ED's valuation, claiming the assets are worth approximately ₹350 crore.
During Wednesday's hearing, Special Judge Vishal Gogne directed the ED to provide a copy of the chargesheet to Subramanian Swamy, acknowledging him as the key complainant in the matter. The court also raised questions regarding the ownership of AJL's assets and whether the company's shareholders could be considered its owners. The judge questioned whether the alleged wrongful acts were ascribed to individuals but not the Congress party, or if the party was a victim. In response, the ED's counsel stated that the donors of the party were the victims.
The legal representatives for Sonia and Rahul Gandhi have requested more time to respond to the charges, citing the voluminous nature of the case documents, which span approximately 5,000 pages. The court has adjourned the matter for further submissions and has scheduled daily hearings from July 2 to July 8.
