New Delhi– The Enforcement Directorate (ED) on Thursday wrapped up its oral arguments before the Rouse Avenue Court, urging the court to take cognizance of a prosecution complaint filed against Congress Parliamentary Party Chairperson Sonia Gandhi, Lok Sabha Leader of the Opposition Rahul Gandhi, and other accused in the alleged National Herald money laundering case.
Additional Solicitor General (ASG) S.V. Raju, representing the ED, presented the agency’s case before Special Judge (PC Act) Vishal Gogne, who has been presiding over the high-profile case on a day-to-day basis. Following the ED’s submissions, the judge directed all proposed accused—including the Gandhis, Congress Overseas Chief Sam Pitroda, and Suman Dubey—to file their responses on Friday, July 4.
ASG Raju argued that Young Indian Ltd., a company in which Sonia and Rahul Gandhi are majority stakeholders, was created to fraudulently acquire assets worth approximately ₹2,000 crore belonging to Associated Journals Ltd. (AJL), the publisher of the now-defunct National Herald newspaper, for a mere ₹50 lakh.
The ED alleged that the shareholding in Young Indian is merely symbolic, and that all other stakeholders acted as proxies for the Gandhi family.
In previous arguments, the ED claimed a criminal conspiracy was orchestrated to form Young Indian with the intent of seizing control over AJL’s extensive assets for the personal gain of top Congress leadership.
Raju also asserted that several senior Congress leaders engaged in sham financial transactions with AJL. According to the ED, these included fraudulent advance rent payments made over several years, based on falsified receipts, at the direction of party officials.
In an earlier hearing on May 2, the Rouse Avenue Court had issued a show cause notice to the Gandhis and other accused, asking why cognizance should not be taken of the ED’s charges filed under the Prevention of Money Laundering Act (PMLA).
The prosecution alleges that Congress leaders misappropriated AJL-owned properties by transforming public trust assets into private holdings.
Founded in 1938 by Pandit Jawaharlal Nehru and other senior leaders, The National Herald was intended to voice the liberal ideology of the Indian National Congress and played a key role during the freedom struggle and early years of independent India. Alongside the English edition, AJL also published Hindi (Navjivan) and Urdu (Qaumi Awaz) newspapers.
The publication ceased operations in 2008 due to mounting debt reportedly exceeding ₹90 crore. The controversy surrounding its assets gained public attention in 2012, when BJP leader Subramanian Swamy filed a complaint accusing Congress leaders of cheating and criminal breach of trust in the acquisition of AJL.
During its investigation, the ED concluded that Young Indian—beneficially owned by the Gandhi family—effectively took control of AJL’s assets while significantly undervaluing their true market worth.
In November 2023, the ED provisionally attached immovable properties valued at ₹661 crore and AJL shares worth ₹90.2 crore, identifying them as suspected proceeds of crime. (Source: IANS)
