The Enforcement Directorate (ED) is intensifying its scrutiny of the National Herald case, raising the possibility that the Congress party itself could be named as an accused. This development follows the ED's allegations in court that the Congress party orchestrated a scheme to seize assets worth ₹2,000 crore through the Young Indian company. The agency contends that the ₹90 crore loan provided to Young Indian was a fraudulent ploy, further alleging that Congress members made fictitious donations.
During a recent hearing at the Rouse Avenue court, the ED asserted that Young India was established as part of a criminal conspiracy. The court has questioned the ED regarding the nature of the crime's proceeds, the shareholding structure, and why certain Congress leaders who purportedly made "sham donations" have not been named as accused. The ED is expected to clarify these points.
The ED's investigation has revealed that some Congress leaders made "fake transactions" to Associated Journals Limited (AJL), the company linked to Sonia Gandhi and Rahul Gandhi. The ED alleges that these transactions only exist on paper, with rent receipts being fabricated and funds transferred to AJL under the direction of senior Congress leaders.
The National Herald case revolves around allegations that Young Indian Limited acquired assets worth ₹2,000 crore from AJL, the publisher of the National Herald newspaper, for a mere ₹50 lakh. The ED has accused Sonia Gandhi and Rahul Gandhi, who each hold a 38% stake in Young Indian, of converting a ₹90.21 crore Congress loan to AJL into equity shares, thereby transferring 99% of AJL's shares to YIL for ₹50 lakh. This, according to the ED, granted the Gandhis beneficial ownership of AJL's real estate.
The ED's investigation also revealed that Young Indian received ₹6.90 crore and ₹5.05 crore in donations during the 2018-19 and 2019-20 fiscal years. These funds were allegedly used to file an appeal against an Income Tax demand. Additionally, the ED discovered that over a dozen entities paid ₹6.8 crore to AJL on the instructions of various Congress leaders.
The Congress party has dismissed the ED's charges as "vendetta politics". However, the ED maintains that a criminal conspiracy was planned by prominent political figures, including Sonia Gandhi and Rahul Gandhi, through Young Indian. The agency alleges their involvement in a money laundering scheme related to the fraudulent takeover of AJL's properties. The ED also claims that Young Indian and AJL properties were used to generate further "proceeds of crime" through bogus donations, advance rent, and advertisements. The ED has already attached properties worth ₹751.9 crore linked to the National Herald in November 2023.
The court has directed the ED to provide a copy of its chargesheet to BJP leader Subramanian Swamy, based on whose complaint the ED initiated its investigation in 2021. The court has scheduled daily hearings in the case. The ED's counsel has argued that a criminal conspiracy was planned by several prominent political figures, including Sonia Gandhi and Rahul Gandhi, through a private company, Young Indian. The agency alleged that the accused have involvement in a money laundering scheme related to the fraudulent takeover of properties valued over ₹2,000 crore belonging to Associated Journals Limited (AJL).
