National Herald Case: Sonia Gandhi, Rahul Gandhi Got Benefits Of Rs 142 Crore, ED Tells Court

The Enforcement Directorate (ED) on Wednesday informed the Rouse Avenue Court that Congress leaders Sonia Gandhi and Rahul Gandhi allegedly got benefits for around Rs 142 crores. ED accused Congress leaders of engaging in financial misconduct related to the National Herald money laundering case. The court subsequently issued notices to both Sonia and Rahul Gandhi, alongside Sam Pitroda and others implicated in the case.

The ED's case is founded on the premise that the Gandhis, through their association with Young Indian, a company holding a 76% stake, allegedly facilitated a transaction that undervalued assets worth Rs 90.25 crore from Associated Journals Ltd. (AJL) for a mere Rs 50 lakh. This transaction, according to the ED, is part of a larger scheme involving the laundering of Rs 988 crore, as detailed in a chargesheet filed last month. The chargesheet points to Sonia Gandhi and her son, Rahul, as primary figures in this alleged conspiracy, marking them as accused no. 1 and accused no. 2 respectively.

The central agency's investigation draws heavily on a 2017 assessment order from the Income Tax Department. This document allegedly reveals a coordinated effort by members of the All India Congress Committee (AICC), along with top officials from AJL and Young Indian, to orchestrate a criminal conspiracy aimed at gaining control over AJL's assets, valued at approximately Rs 2,000 crore. AJL, historically linked to the publication of the National Herald newspaper, is identified as a pivotal element in this case.

The National Herald, initiated by Jawaharlal Nehru and other freedom fighters in 1938, served as a prominent voice for the Indian National Congress, especially post-Independence. The publication, managed by Associated Journals Limited, expanded to include Hindi and Urdu editions over time. However, financial struggles led to the cessation of operations in 2008, with the company accruing debts over Rs 90 crore.

Controversy surrounding the National Herald's assets resurfaced in 2012 following a complaint by BJP leader and lawyer Subramanian Swamy. He accused certain Congress leaders of engaging in cheating and breach of trust during the acquisition of AJL through Young Indian Ltd, labeling the takeover as "malicious."

ED's special counsel, Zoheb Hossain, emphasized during court proceedings that any asset, whether directly or indirectly acquired through criminal activities, is considered proceeds of crime. This definition extends beyond assets obtained from scheduled offences to include any income generated by such assets. Hossain argued that the rental income of Rs 142 crore, received by the accused, should thus be regarded as proceeds of crime. He highlighted the alleged breach of trust by the involved Congress leaders, underscoring the legal framework supporting the ED's allegations.