ED Alleges ₹988 Cr Asset Grab : A Delhi court issues notices to Sonia and Rahul Gandhi in the ₹988 crore National Herald money laundering case. ED seeks cognisance under PMLA.
A Delhi court on Friday issued notices to Congress Parliamentary Party Chairperson Sonia Gandhi and Leader of Opposition in the Lok Sabha Rahul Gandhi in connection with the alleged money laundering case involving the National Herald newspaper. The court has asked the Gandhis and other accused to explain why cognisance should not be taken on the charge sheet filed by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA).
The notices were issued by Rouse Avenue Courts, which is hearing the prosecution complaint filed by the ED in the high-profile case. Special Judge (PC Act) Vishal Gogne directed the accused, which includes several senior Congress figures, to respond to the ED’s plea and explain their position before the court proceeds further.
The matter had come up earlier last week when Judge Gogne temporarily declined to issue notices, citing procedural lapses in the prosecution’s filing. He had instructed the ED to rectify the defects in the complaint and submit all relevant documents to the court. The judge had clearly stated, “I cannot pass such an order until satisfied,” responding to the ED’s request to issue notices without first hearing the accused.
Following the court’s direction, the matter was posted for hearing on May 2. With the procedural shortcomings reportedly addressed, the court has now taken the next step by seeking a formal response from the accused individuals.
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The ED had recently filed a prosecution complaint naming Sonia Gandhi, Rahul Gandhi, Congress Overseas chief Sam Pitroda, senior journalist Suman Dubey, and other individuals. The agency alleges that these Congress leaders were involved in misappropriating assets of the Associated Journals Limited (AJL), the original publisher of the National Herald. The ED estimates the value of the alleged proceeds of crime at Rs 988 crore.
According to the ED’s findings, the Congress leadership is accused of fraudulently acquiring AJL’s assets by using a privately held company, Young Indian Ltd, in which Sonia and Rahul Gandhi are majority stakeholders. The agency claims that the assets, originally meant for public interest and inherited from the historical newspaper, were converted into personal property at a nominal price of Rs 50 lakh, far below their actual market value.
National Herald, established in 1938 by India’s first Prime Minister Jawaharlal Nehru and other prominent Congress leaders, played a significant role in the freedom movement. Published in English by AJL, it was considered the intellectual mouthpiece of the Indian National Congress. AJL also published newspapers in Hindi (Navjeevan) and Urdu (Qaumi Awaz). However, all editions ceased operations in 2008 due to financial difficulties and liabilities exceeding Rs 90 crore.
The case first came into public attention in 2012 when BJP leader Subramanian Swamy filed a complaint in a trial court, accusing top Congress leaders of criminal breach of trust and cheating in the acquisition of AJL’s assets. Swamy alleged that the acquisition was not just unethical but illegal, designed to funnel valuable real estate and other assets into the hands of Congress leadership through Young Indian.
As part of its ongoing probe, the ED attached several immovable properties in November 2023, which it said were linked to the alleged laundering. The seized assets were valued at Rs 661 crore, along with AJL shares worth Rs 90.2 crore, described as suspected proceeds of crime by the agency.
The issuance of notices marks a significant development in the long-running National Herald case, which has been a major political flashpoint between the BJP and the Congress for over a decade. While the Congress party has consistently denied any wrongdoing, calling the investigation politically motivated, the case continues to progress through the legal system.
The court will now await the responses of Sonia and Rahul Gandhi and other accused before deciding whether to take cognisance of the ED’s prosecution complaint. Further hearings are expected to shape the course of one of India’s most watched financial investigations involving top political figures.
