National Herald Case: ED to Seize ₹661 Crore in Assets

National Herald Case: ED to Seize ₹661 Crore in Assets

RMN News Story Highlights:

The Enforcement Directorate (ED) has served notices to take possession of immovable assets worth ₹661 crore in Delhi, Mumbai, and Lucknow as part of a money laundering probe linked to the National Herald case. 

Congress leaders Sonia and Rahul Gandhi are majority shareholders of Young Indian, which is under investigation for allegedly acquiring AJL’s assets for a significantly undervalued amount. 

Transparency International’s Corruption Perceptions Index 2024 reveals that corruption has been increasing in India, with the country’s rank falling to 96th. 

The ED’s investigation into the National Herald case began in 2021 following a private complaint alleging a criminal conspiracy involving prominent political figures.

New Delhi, 13th April 2025 – The Enforcement Directorate (ED) has escalated its investigation into the National Herald case by serving notices to take possession of immovable assets worth ₹661 crore. 

These properties, located in Delhi, Mumbai, and Lucknow, were previously attached as part of a money laundering probe linked to the National Herald newspaper and Associated Journals Limited (AJL). This development occurs against a backdrop of increasing concerns about corruption in India, as highlighted by the Transparency International’s Corruption Perceptions Index (CPI).

The ED’s action targets assets held by AJL, which publishes the National Herald, and Young Indian, the company that owns the newspaper. Congress leaders Sonia Gandhi and Rahul Gandhi are the majority shareholders of Young Indian and were questioned in 2022 as part of the investigation.

ED Takes Possession of Attached Properties

The Enforcement Directorate stated on Saturday that it has served notices to take possession of immovable assets valued at ₹661 crore in Delhi, Mumbai, and Lucknow. These assets were initially attached following a provisional attachment order in a case under the Prevention of Money Laundering Act (PMLA) against AJL and Young Indian.

According to the ED, this action follows an “extensive investigation” that revealed “significant generation, possession and use of proceeds of crime to the tune of Rs 988 crore”. The agency had provisionally attached the AJL properties, valued at ₹661 crore, along with AJL shares worth ₹90.2 crore, through an order dated November 20th of the previous year. This attachment was subsequently confirmed by the adjudicating authority on April 10th of the previous year.

The ED stated that in compliance with Section 8 of the PMLA, 2002, and related rules, notices were served on April 11th to the registrars of properties in Delhi, Mumbai, and Lucknow where the AJL properties are situated. Notices seeking vacation of the premises have also been prominently displayed at the attached properties, including Herald House at Bahadur Shah Zafar Marg, New Delhi; Herald House in Bandra (E), Mumbai; and at Bisheshwar Nath Road, Lucknow.

Furthermore, a notice has been served to Jindal South West Projects Limited, a tenant occupying floors in the Mumbai Herald House, directing them to transfer their monthly rent to the Directorate of Enforcement.

Allegations of Money Laundering and Fraudulent Takeover

The ED’s investigation commenced in 2021 after a Delhi court acknowledged a private complaint filed by Subramanian Swamy. The complaint alleged a criminal conspiracy involving several prominent political figures, including Sonia Gandhi, Rahul Gandhi, and others, for their alleged involvement in a money laundering scheme related to the fraudulent takeover of AJL properties valued at over ₹2,000 crore by Young Indian for a mere ₹50 lakh.

The ED claims its investigation conclusively showed that Young Indian, a private company beneficially owned by Sonia Gandhi and Rahul Gandhi, acquired AJL properties worth ₹2,000 crore for just ₹50 lakh, significantly undervaluing them. The agency also stated that Young Indian and AJL properties were used to generate further illicit gains through “bogus donations to the tune of ₹18 crore, bogus advance rent to the tune of ₹38 crore and bogus advertisements of ₹29 crore”.

The ED asserts that the initiation of possession proceedings for the “tainted properties” is in line with Section 8 of the PMLA 2002 and related rules aimed at preventing the further generation, utilisation, and enjoyment of these alleged proceeds of crime. The agency also noted that legal proceedings against the accused have been upheld by the Delhi High Court and the Supreme Court, allowing the investigation to continue.

Congress Denies Wrongdoing, Alleges Political Vendetta

The Congress party has strongly refuted the ED’s actions and the underlying allegations. According to an April 13, 2025 report of The Indian Express, Congress MP Abhishek Manu Singhvi stated that these proceedings are a continuation of a case where money laundering is alleged without any actual movement or transfer of money. He argued that the mere transfer of shares is being misrepresented as money laundering. Singhvi accused the government of attempting to over-sensationalise the issue and harass its political opponents, asserting that appropriate legal remedies will be pursued in court.

Rising Corruption Concerns in India

These developments in the National Herald case come at a time when concerns about corruption in India are reportedly increasing. According to Transparency International’s Corruption Perceptions Index (CPI) 2024, released in February 2025, India’s ranking has fallen to 96th position from 93rd in the previous year and 85th in 2022, indicating a rise in corruption.

With a score of 38 out of 100, where 0 signifies high corruption and 100 signifies very low corruption, India is positioned among the more corrupt nations evaluated in the index, which covers 180 countries and territories. The Transparency Index suggests that corruption is escalating in nations with unfair elections and weakened democratic institutions. India’s score of 38 places it lower than China, which has a CPI rank of 76.