The Enforcement Directorate (ED) has intensified its investigation into the National Herald case, alleging that the Congress party sought to illicitly gain control of assets worth ₹2,000 crore belonging to Associated Journals Limited (AJL). The ED's probe revolves around suspected money laundering in the acquisition of AJL by Young Indian Pvt Ltd (YIL). Senior Congress leaders Sonia Gandhi and Rahul Gandhi are major shareholders in Young Indian, making them central figures in the investigation.
The ED's case is based on a complaint filed in 2012 by BJP leader Subramanian Swamy, who alleged criminal conspiracy, cheating, and breach of trust in the acquisition of AJL by YIL. Swamy contended that YIL acquired the assets of National Herald in a "malicious" manner. The ED has since been investigating the financial transactions and operations of AJL and YIL.
According to the ED, the Congress party provided an interest-free loan of ₹90 crore to AJL, which owns significant real estate across India. When AJL allegedly failed to repay the loan, Congress, under Sonia Gandhi's leadership, transferred AJL to Young Indian, a newly formed "not-for-profit" company. Sonia and Rahul Gandhi together held 76% of the stakes in Young Indian. The ED claims that this transfer allowed the Gandhis to gain control over AJL's assets, which included properties like the Herald House in Delhi, premises in Mumbai, and a building in Lucknow.
The ED has provisionally attached AJL's immovable properties worth ₹661 crore and shares worth ₹90.2 crore. The agency aims to "seize the continued enjoyment of the tainted assets," preventing the "beneficial owners" of AJL's properties from profiting from or alienating these assets.
The ED's investigation has revealed that AJL allegedly received "bogus" advance rent worth ₹38.41 crore from various parties, some of whom claimed they made the payments under the direction of senior Congress leaders. The ED also found that AJL earned ₹142 crore in rent between 2010-11 and 2022-23, with ₹58.79 crore as advance rent. The agency alleges that ₹38.41 crore of this advance rent was not genuine, as there were no rent agreements with the involved parties.
Furthermore, the ED discovered that the rent earned from AJL's properties was used to develop commercial spaces, particularly in Mumbai. The agency also scrutinized AJL's advertising revenue, revealing that it earned ₹29.45 crore from advertisements between 2017-18 and 2020-21, with ₹15.86 crore allegedly received from Congress-affiliated bodies.
In May 2025, the ED informed a court that Sonia and Rahul Gandhi allegedly received ₹142 crore in "proceeds of crime" through the acquisition of AJL via Young Indian. The agency asserted that a 'prima facie' case of money laundering was established against Sonia, Rahul, and others involved in the acquisition. The court is scheduled to continue hearing arguments in the case in July 2025.
The Congress party has dismissed the charges as "political vendetta". The party argues that the ED's actions are politically motivated and aim to harass and defame its leaders. However, the ED maintains that its investigation is based on solid evidence of money laundering and illegal acquisition of assets. The National Herald case remains a contentious issue, with significant political ramifications.
