Gandhis beneficiaries of Rs 142 crore in National Herald case: Probe agency

New Delhi (TIP)- The Enforcement Directorate (ED) on May 21 told a Delhi court that Congress leaders Sonia Gandhi and Rahul Gandhi were beneficiaries of Rs 142 crore in proceeds of crime in connection with the ongoing National Herald money laundering case. The central agency argued that a case under the Prevention of Money Laundering Act (PMLA) had been established.
The submissions were made before Special Judge Vishal Gogne at the Rouse Avenue Court during initial arguments on whether the court should take note of the ED’s prosecution complaint filed against the two senior Congress leaders and other accused.
The complaint stems from a 2014 private criminal complaint filed by BJP leader Subramanian Swamy, which the magistrate court took note of in June 2014. The ED formally began its investigation in 2021.
The defence, represented by senior advocate Abhishek Manu Singhvi, requested time to respond, citing the nature of the case documents, which span approximately 5,000 pages.
What is the National Herald money laundering case?
Both Sonia and Rahul have been questioned as part of the probe before
Rahul Gandhi, was last questioned by ED in the case in June 2022. His mother Sonia Gandhi was also questioned about her role in the day-to-day functioning of Young Indian Private Limited (YIL). The mother-son duo were questioned about the ownership of YIL by the Gandhi family and its shareholding pattern in Associated Journals Limited (AJL), the company that runs the National Herald newspaper.
ED began its probe in the National Herald case after Swamy filed a complaint in 2014, accusing Sonia, Rahul and other senior Congress leaders of taking over AJL properties for a mere sum of Rs 50 lakh. The properties are worth over Rs 2,000 crore.
The National Herald is published by AJL, which is owned by YIL . Sonia and Rahul Gandhi each hold a 38 per cent stake in Young Indian, making them its majority shareholders.
On April 12, ED served notices to take possession of immovable assets worth Rs 661 crore – in Delhi, Mumbai and Lucknow – that it had attached as part of a money laundering probe linked to National Herald newspaper and Associated Journals Limited (AJL).
The ED had attached these properties earlier by issuing a provisional attachment order in a PMLA case against AJL.
What happens if the charges are proven?
If convicted under the Prevention of Money Laundering Act (PMLA), the accused could face imprisonment of up to seven years.
Are the Gandhis in trouble?
The acquisition of AJL’s shares by YIL for Rs 50 lakh raises questions about the transaction’s propriety, including the lack of regulatory oversight.
The Congress has to explain why the ownership of AJL was given to a company in which the Gandhis have a 76 per cent stake.