National Herald case: Sonia, Rahul Gandhi hatched conspiracy to siphon off Rs 2,000 crore AJL assets, says ED

A trial court released Sonia and Rahul on bail in this matter on December 19, 2015

During a Delhi special court hearing of the National Herald case on Wednesday, the Enforcement Directorate said the Congress wanted to usurp the Associated Journals Limited (AJL), which had assets worth Rs 2,000 crore.

According to news18, Additional Solicitor General V Raju, appearing for the ED said the conspiracy was hatched at the behest of the Congress by its leaders Sonia and Rahul Gandhi.

Raju alleged a conspiracy was hatched to form Young Indian, in which Sonia and Rahul held 76% shares, to siphon off Rs 2,000 crore assets for a Rs 90 crore loan taken from Congress. The ED also claimed that advertising funds were funneled to AJL under similar instructions from top Congress leaders.

During its earlier hearing on May 21, the ED said  that Congress MP Rahul and his mother Sonia Gandhi enjoyed around Rs 142 crore in proceeds of crime. The ED told the court that the accused were "enjoying the proceeds of crime" until November 2023, when the central agency attached properties worth Rs 751.9 crore linked to the National Herald, India Today reported.

The anti-money laundering agency filed a prosecution complaint against senior Congress leaders, including the Gandhis, in the National Herald case. Others named in the charge sheet include Congress Overseas Chief Pitroda, Suman Dubey, and others.

The charge sheet reportedly valued the alleged proceeds of crime to the tune of Rs 988 crore.

What is the National Herald case?

The ED case is based on a trial court order that allowed the Income Tax Department to probe the affairs of National Herald newspaper and conduct a tax assessment of Sonia and Rahul Gandhi. The order was the result of a petition filed by BJP leader Subramanian Swamy in 2013.

Swamy’s complaint also contained allegations of cheating and misappropriation of funds relating to the Gandhis’ acquisition of the newspaper. Swami had alleged that the Gandhis purportedly purchased the properties belonging to National Herald by purchasing the publishers of the newspaper, The Associated Journals Limited (AJL), through a company called Young Indian (YI) in which they control 86 percent shares.

The trial court released Sonia and Rahul on bail in this matter on December 19, 2015. , Sonia, Rahul and others are charged with the crime of misappropriation by financing with YI the right to recover Rs 90.25 crore of debt that AJL owed the Congress for Rs 50 lakh.