National Herald case: Gandhis transferred 99% of AJL shares for just Rs 50 lakh, says ED
PTC Web Desk: The Enforcement Directorate (ED) has named senior Congress leaders Sonia Gandhi and Rahul Gandhi as the key accused in a high-profile money laundering case linked to the National Herald newspaper. The chargesheet, recently filed in a special court, alleges that the two leaders orchestrated a criminal conspiracy to acquire valuable properties worth Rs 2,000 crore, originally owned by Associated Journals Ltd (AJL), the publisher of the National Herald.
According to the ED’s findings, the assets were allegedly transferred to Young Indian Pvt Ltd, a company where Sonia and Rahul Gandhi hold a 76% ownership stake, while the remaining 24% was previously held by the late Motilal Vohra and Oscar Fernandes. The ED claims that 99% of AJL’s shares were acquired by Young Indian for just Rs 50 lakh, enabling the Gandhis to become beneficial owners of AJL's real estate and other holdings.
The current market value of AJL’s properties has reportedly surged to Rs 5,000 crore, while the ED has identified proceeds of crime amounting to Rs 988 crore, as per sources.
Notably, Sonia Gandhi has been listed as accused No. 1, and Rahul Gandhi as accused No. 2 in the chargesheet. Other accused include prominent Congress leaders Sam Pitroda and Suman Dubey.
The ED is seeking prosecution under Section 4 of the Prevention of Money Laundering Act (PMLA), which carries a maximum prison term of seven years. A special court is scheduled to review the chargesheet and decide on taking cognisance on April 25.
Background of the Case
The controversy dates back to a 2013 petition filed by former Union Minister Subramanian Swamy, which prompted a trial court to permit the Income Tax Department to scrutinise the financial dealings of AJL and the Gandhi family. This led to the ED initiating a probe into the alleged misappropriation of assets.
As per the chargesheet, the Congress had extended a loan of Rs 90.21 crore to AJL, which was later converted into equity worth Rs 9.02 crore. These shares were then transferred to Young Indian for just Rs 50 lakh.
Young Indian, although registered as a not-for-profit under Section 25 of the Companies Act, did not undertake any charitable work, according to the ED’s investigation.
The ED alleges that this maneuver enabled Sonia and Rahul Gandhi to gain de facto control over AJL’s real estate assets, including prime properties across Indian cities, without any actual charitable objectives being fulfilled.
- With inputs from agencies
