Did Congress Attempt to Seize Rs 2,000 Crore Assets from National Herald?

New Delhi, July 2 (NationPress) The Enforcement Directorate (ED) informed a court that the Congress party sought to seize assets valued at approximately Rs 2,000 crore from the now-defunct National Herald newspaper.

Additional Solicitor General (ASG) S.V. Raju, representing the ED, presented to the Rouse Avenue Court that a conspiracy was orchestrated to establish Young Indian Ltd — where Sonia Gandhi, Chairperson of the Congress Parliamentary Party, and Rahul Gandhi, Leader of Opposition in the Lok Sabha, hold majority shares — to gain control over the newspaper's extensive assets for the personal benefit of the party's leadership.

ASG Raju further stated that numerous senior Congress officials were implicated in “fake transactions” with Associated Journals Limited (AJL), the original publisher of the National Herald. The ED alleges that individuals were making fraudulent advance rent payments over several years under the direction of senior Congress leaders, supported by fabricated rent receipts.

Special Judge (PC Act) Vishal Gogne is overseeing the alleged money laundering case related to the National Herald, conducting daily hearings on behalf of the Central agency and the accused, including Sonia and Rahul Gandhi, Congress Overseas Chief Sam Pitroda, and Suman Dubey.

In a prior hearing, ASG Raju asserted that the Gandhis had benefited from Rs 142 crore in “proceeds of crime” and continued to reap rewards until the ED attached the National Herald's assets. According to the ED, the accused engaged in money laundering not only during the acquisition of the “proceeds of crime” but also while retaining these assets. Previously, the Rouse Avenue Court requested the Gandhis and other accused parties to justify why cognizance should not be taken of the ED's prosecution complaint against them under the Prevention of Money Laundering Act (PMLA).

The charge sheet indicated that the Congress leadership misappropriated property belonging to AJL by converting public trust into personal assets.

The National Herald, a publication founded by Jawaharlal Nehru and other notable leaders in 1938, was initially intended to represent a liberal voice within the Congress party. Published by AJL, the National Herald served as a vital instrument for the Congress during the struggle for independence and the post-independence era. Along with its English version, AJL also printed newspapers in Hindi and Urdu.

However, the newspaper ceased operations in 2008 due to escalating debts exceeding Rs 90 crore. The controversy surrounding its assets gained attention in 2012 when BJP leader Subramanian Swamy lodged a complaint in a trial court, alleging that Congress leaders had committed cheating and breach of trust in acquiring AJL.

During the investigation, the ED discovered that the accused, including Sonia and Rahul Gandhi, used Young Indian to gain control of AJL’s assets for a nominal fee of Rs 50 lakh. The agency claimed that Young Indian, effectively owned by the Gandhis, acquired AJL's properties while significantly undervaluing their market worth.

In November 2023, the ED attached immovable properties worth Rs 661 crore and AJL shares valued at Rs 90.2 crore, referring to them as suspected proceeds of crime.