ED Moves To Take Possession Of Rs 661 Crore Assets In National Herald Case Linked To Sonia, Rahul Gandhi
The Enforcement Directorate (ED) has issued notices to take possession of immovable assets worth ₹661 crore in connection with its ongoing probe into the money laundering case linked to the Congress-controlled Associated Journals Limited (AJL), the publisher of National Herald. The action is part of the investigation against AJL and its holding company, Young Indian Private Limited.
In a statement released on Saturday, the federal agency said it affixed the notices at three locations—Herald House in Delhi’s ITO area, a property in Mumbai’s Bandra, and the AJL building on Bisheshwar Nath Road in Lucknow—on Friday. The notices seek either vacation of the premises or the transfer of rent, in the case of the Mumbai asset, to the ED.
The action, the agency said, has been undertaken under Section 8 and Rule 5(1) of the Prevention of Money Laundering Act (PMLA), which deals with the procedure for taking possession of properties attached and confirmed by the PMLA adjudicating authority. These assets were initially attached by the ED in November 2023.
The ED’s case claims that properties held by AJL and Young Indian were used to generate proceeds of crime. This includes bogus donations worth ₹18 crore, advance rent of ₹38 crore, and fictitious advertisements amounting to ₹29 crore, according to the agency, news agency PTI reported.
What Is National Herald Case Where Sonia Gandhi and Rahul Gandhi Are Named Accused
The National Herald is published by AJL, which is owned by Young Indian Private Limited. Congress leaders Sonia Gandhi and Rahul Gandhi are majority shareholders in Young Indian, holding 38 per cent each.
"The investigation by ED commenced in 2021, on the basis of a cognizance order issued on June 26, 2014, by the Metropolitan Magistrate Patiala House Courts in New Delhi, based on a private complaint filed by Shri Subramanian Swamy. The complaint highlighted a criminal conspiracy by several prominent political figures, including Smt. Sonia Gandhi, Sh. Rahul Gandhi, Lt. Sh. Motilal Vohra, Lt. Sh. Oscar Fernandes, Sh. Suman Dubey, Sh. Sam Pitroda and a private company Young Indian for alleged involvement in a money laundering scheme related to the fraudulent takeover of properties valued over 2000 crores belonging to Associated Journals Limited (AJL)," the central agency stated in a release.
The money laundering probe stems from a case registered by the ED following the issuance of process by a Delhi court based on a private complaint, with the court’s order dated 26 June 2014. The court, according to the agency, held that seven accused, including Young Indian, had prima facie committed offences under the Indian Penal Code, including criminal breach of trust, cheating, dishonest misappropriation of property, and criminal conspiracy, news agency IANS reported.
The ED further stated that AJL was allotted land in several Indian cities at concessional rates for publishing newspapers. However, AJL ceased its publishing operations in 2008 and began using the properties for commercial purposes.
The investigation agency has alleged that AJL was liable to repay a loan of ₹90.21 crore to the All India Congress Committee (AICC). Instead, AICC declared the loan as non-recoverable and sold it to Young Indian—a newly-incorporated company with no known income—for ₹50 lakh. The ED contends that this move deceived AJL shareholders and Congress donors alike.
Subsequently, after acquiring the ₹90.21 crore loan, Young Indian demanded either repayment or allotment of equity shares of AJL. An Extraordinary General Meeting was convened by AJL, during which a resolution was passed to increase its share capital and issue fresh shares worth ₹90.21 crore to Young Indian. This move drastically reduced the stake of over 1,000 existing shareholders to just 1 per cent, effectively making AJL a subsidiary of Young Indian and giving the latter control over AJL’s properties, the ED said, as per IANS.
According to the ED, its investigation has revealed that AJL is in possession of proceeds of crime in the form of immovable properties spread across Delhi, Mumbai, and Lucknow amounting to ₹661.69 crore, while Young Indian holds proceeds of crime worth ₹90.21 crore through its investment in AJL’s equity shares.
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