What’s Behind the ED's Charges Against Sonia and Rahul Gandhi in the National Herald Case?

Overview of the Allegations

In a significant development, the Enforcement Directorate (ED) has accused Congress leaders of orchestrating a 'criminal conspiracy' to illegally acquire properties valued at ₹2,000 crore belonging to AJL, a public company. The agency claims that 99% of AJL's shares were transferred to Young Indian for a mere ₹50 lakh, with Sonia Gandhi and Rahul Gandhi being the primary shareholders.

Sonia Gandhi has been designated as accused number one, while her son Rahul Gandhi is accused number two in the ED's prosecution complaint filed under the Prevention of Money Laundering Act (PMLA) before Special Judge Vishal Gogne.

The chargesheet, submitted on April 9, also names Congress associates Suman Dubey and Sam Pitroda, along with the companies Young Indian and Dotex Merchandise Pvt Ltd, and Sunil Bhandari from Dotex Merchandise.

The ED's chargesheet cites sections 44 and 45 of the PMLA, alleging money laundering offenses as defined under Section 3 of the Act, and seeks to establish 'vicarious liability' for the executives involved.

The agency is pursuing penalties under Section 4 of the PMLA, which could lead to imprisonment for up to seven years.

The court has scheduled the next hearing for April 25.

According to sources, the ED has identified ₹988 crore as 'proceeds of crime' in this case, with the current market value of the associated assets estimated at ₹5,000 crore.

Recently, the ED announced it had issued notices to seize immovable assets worth ₹661 crore linked to this investigation.

AJL is known for publishing the National Herald news platform, which is owned by Young Indian Private Limited.

The chargesheet also mentions that proceedings against deceased Congress leaders Motilal Vora and Oscar Fernandes have been 'abated', with the possibility of a supplementary chargesheet being filed soon.

Congress leader Jairam Ramesh criticized the ED's actions, labeling the charges against Sonia and Rahul Gandhi as politically motivated intimidation by the current government.

The ED's findings reference a December 2017 Income Tax Department assessment, alleging that key figures within AJL and Young Indian conspired to misappropriate properties worth ₹2,000 crore by transferring shares for an insignificant amount.

Both Sonia and Rahul Gandhi hold 38% of Young Indian's shares, making them the majority stakeholders, while the remaining 24% is held by Vora and Fernandes, who were close associates of the Gandhis.

The investigation revealed that the accused allegedly converted a loan of ₹90.21 crore from AICC to AJL into equity shares worth ₹9.02 crore, transferring these shares to Young Indian for just ₹50 lakh.

This transfer reportedly allowed the accused to gain 'beneficial' ownership of AJL's extensive properties.

Despite Young Indian being registered as a 'not for profit' entity, the ED claims there is no evidence of any charitable activities conducted by the company.

The agency's investigation has indicated tax evasion exceeding ₹414 crore attributed to Young Indian for unlawfully acquiring AJL's properties.

The ED's inquiry commenced in 2021 following a private complaint lodged by BJP leader Subramanian Swamy, which was acknowledged by the Metropolitan Magistrate at Patiala House Courts in Delhi on June 26, 2014.

Both the Delhi High Court and the Supreme Court have declined to intervene in the trial process.