National Herald: ED Charges Gandhis, Others in ₹5,000 Crore Money Laundering Case

National Herald: ED Charges Gandhis, Others in ₹5,000 Crore Money Laundering Case

RMN News Story Highlights:

• The Enforcement Directorate (ED) has filed a chargesheet against Sonia Gandhi, Rahul Gandhi, and others in the National Herald money laundering case.
• The ED alleges proceeds of crime worth ₹5,000 crore and accuses the Gandhis of a “criminal conspiracy” to “usurp” assets of Associated Journals Ltd (AJL).
• The chargesheet states that 99% of AJL’s shares were transferred to Young Indian (a firm controlled by the Gandhis) for just ₹50 lakh, while the current market value of the assets is estimated at ₹5,000 crore.
• A special court has scheduled a hearing for April 25 to consider the chargesheet.

New Delhi: The Enforcement Directorate (ED) has filed a chargesheet against Sonia Gandhi, Rahul Gandhi, and others in connection with the National Herald money laundering case, alleging proceeds of crime worth ₹5,000 crore. This marks a significant escalation in the long-running legal battle, with a special court scheduled to consider the chargesheet on April 25.

The prosecution complaint, equivalent to a chargesheet, was filed on April 9, potentially paving the way for the framing of criminal charges and a trial against the former Congress president Sonia Gandhi, and the leader of the opposition in Lok Sabha, Rahul Gandhi, along with their associates. 

The special MP/MLA court in Delhi has fixed April 25 as the next hearing date to decide whether to take cognisance of the chargesheet, representing a major development in the case against the Gandhis and individuals close to them.

According to ED sources, the chargesheet names five individuals and two companies as accused. These include Young Indian, a firm in which the Gandhis hold a controlling stake. Other individuals named are reportedly their close family friends, Sam Pitroda, head of Congress’s overseas branch, and Suman Dubey.

The core of the case revolves around allegations that Sonia Gandhi and Rahul Gandhi orchestrated a “criminal conspiracy” to “usurp” properties belonging to Associated Journals Ltd (AJL), the publisher of the National Herald newspaper, with an estimated value of ₹2,000 crore. 

The ED alleges that this was achieved by transferring 99% of AJL’s shares to Young Indian, a private company controlled by the Gandhis, for a mere ₹50 lakh. The current market value of these assets is now estimated to be ₹5,000 crore.

The ED’s chargesheet reportedly states that the “principal officers” of AJL, Young Indian, and “key” Congress office bearers entered into a “criminal conspiracy” to acquire AJL’s assets, which was a public company. The agency claims that this was done by converting an outstanding loan of ₹90.21 crore given by the Congress party to AJL into ₹9.02 crore equity shares. 

Subsequently, all these shares were allegedly transferred to Young Indian for a “paltry” ₹50 lakh. Through this transfer, Sonia and Rahul Gandhi allegedly became the “beneficial” owners of AJL’s properties worth thousands of crores.

The ED has reportedly produced documentary evidence related to the money trail and other transactions to support its claims. The agency has already questioned Sonia and Rahul Gandhi, along with former Congress treasurers Motilal Vora and Oscar Fernandes, multiple times over the past few years, and their statements are believed to be part of the prosecution complaint.

Furthermore, the ED announced recently that it had initiated proceedings to take possession of attached ₹750 crore properties of AJL, including land and buildings located in Mumbai, Delhi, and Lucknow.

The case originated from a petition filed in 2013 by former minister Subramanian Swamy, which led to a trial court order allowing the Income Tax department to investigate the affairs of the National Herald and conduct a tax assessment of the Gandhis.

Both Sonia and Rahul Gandhi, named as accused number one and two in the chargesheet respectively, had previously unsuccessfully attempted to have the ED’s proceedings quashed by the courts and are currently out on bail. The ED has sought punishment for Sonia Gandhi, Rahul Gandhi, and other accused under Section 4 of the Prevention of Money Laundering Act (PMLA), where a jail term can extend up to seven years.

The ED probe also reportedly found that while Young Indian was listed as a “not-for-profit” company, there was “no such charitable activity” within the company.

The upcoming hearing on April 25, where the special court will decide on taking cognisance of the chargesheet, is a critical juncture in the National Herald case. This decision will determine the next steps in the legal proceedings against the Gandhis and other accused in the alleged ₹5,000 crore money laundering.