Enforcement Directorate Accuses Sonia and Rahul Gandhi of Financial Misconduct in National Herald Case

Allegations Against Congress Leaders

On Wednesday, the Enforcement Directorate presented allegations in a Delhi court, claiming that Congress leaders Sonia Gandhi and Rahul Gandhi intended to misappropriate Rs 2,000 crore from Associated Journals Limited (AJL), the former publisher of the National Herald newspaper.

During the proceedings, Additional Solicitor General SV Raju, representing the Enforcement Directorate, stated that the Congress party provided an interest-free loan of Rs 90 crore to AJL in exchange for a mere Rs 50 lakh. The agency contended that this loan was later converted into equity for Young Indian, a not-for-profit organization where the Gandhis hold a 76% stake.

Raju pointed out to the court that AJL, despite not being profitable, possessed assets valued at Rs 2,000 crore. He questioned how the company could not repay the Rs 90 crore loan, suggesting that a sensible entity would have liquidated assets to settle debts.

The Enforcement Directorate is investigating money-laundering claims associated with this case, alleging a scheme to establish Young Indian for the unlawful acquisition of AJL's assets through dubious transactions involving several Congress leaders and the aforementioned loan.

Raju further asserted that the Congress party's objective was to 'usurp' AJL, stating, 'The conspiracy involved creating Young Indian to siphon off Rs 2,000 crore in return for a Rs 90 crore loan. Sonia Gandhi and Rahul Gandhi aimed to take control of this company.'

The chargesheet in this case was filed by the Enforcement Directorate on April 9, following the agency's attempt to seize properties worth Rs 661 crore linked to the investigation in various cities including Delhi, Mumbai, and Lucknow.

Background of the National Herald Case

Founded and edited by Jawaharlal Nehru prior to his role as India's first prime minister, the National Herald ceased operations in April 2008 due to debts exceeding Rs 90 crore.

Bharatiya Janata Party leader Subramanian Swamy lodged a complaint against the publication in 2012, alleging that Sonia and Rahul Gandhi established Young Indian Private Limited to acquire the debt using party funds.

Swamy claimed that Young Indian paid only Rs 50 lakh to gain the rights to recover Rs 90.2 crore owed by AJL to the Congress party.

The Congress party has maintained that no financial transactions occurred, asserting that the debt was merely converted into equity to address outstanding obligations, including employee salaries.