ED Initiates Action to Seize ₹661 Crore Assets in National Herald Case Involving Sonia and Rahul Gandhi
The Enforcement Directorate (ED) has moved forward with steps to take possession of immovable assets worth ₹661 crore as part of its ongoing investigation in the National Herald money laundering case. These assets are linked to Associated Journals Limited (AJL) and Young Indian Private Limited, which are reportedly connected to senior Congress leaders Sonia Gandhi and Rahul Gandhi.
According to an official statement released on Saturday, the federal probe agency has affixed notices at three key locations: Herald House in Delhi’s ITO area, a property located in Bandra, Mumbai, and AJL’s premises on Bisheshwar Nath Road in Lucknow. These notices were put up on Friday and request either the vacation of the properties or, in the case of the Mumbai property, the transfer of rental income to the ED.
Properties Attached Under PMLA
The ED has taken this action under the provisions of the Prevention of Money Laundering Act (PMLA), specifically Section 8 and Rule 5(1). These clauses relate to the process of possession of properties that have been attached and whose attachment has been confirmed by the adjudicating authority under the Act. The assets in question were originally attached in November 2023.
As part of the process to take possession of the tainted properties in the Associated Journals Limited (AJL) money laundering case, the Directorate of Enforcement (ED) in compliance with Section 8 of PMLA, 2002 and Rule 5(1) of the Prevention of Money Laundering (Taking…
— ED (@dir_ed) April 12, 2025
In its complaint, the ED alleges that the properties held by AJL and its parent company Young Indian were used to generate illegal proceeds. These alleged proceeds include fake donations totaling ₹18 crore, advance rental payments of ₹38 crore, and fraudulent advertisement revenue of ₹29 crore.
Background of the National Herald Case
The case is rooted in the ownership and operations of the National Herald newspaper, which is published by AJL. Young Indian Private Limited, a company in which Congress leaders Sonia Gandhi and Rahul Gandhi hold 38% shares each, controls AJL.
The ED launched its probe in 2021 following a court order issued on June 26, 2014, by a Metropolitan Magistrate at Patiala House Courts in Delhi. The order was in response to a private complaint lodged by BJP leader Subramanian Swamy. The complaint accused several prominent Congress figures—including Sonia Gandhi, Rahul Gandhi, the late Motilal Vohra, the late Oscar Fernandes, Suman Dubey, and Sam Pitroda—of criminal conspiracy related to the alleged misappropriation of properties valued at over ₹2,000 crore.
ED initiates proceedings under PMLA to take possession of properties in the Associated Journals Limited (AJL) money laundering case. Notices served to property registrars in Delhi, Mumbai, and Lucknow on April 11, 2025 pic.twitter.com/tikRvpIQF1
— IANS (@ians_india) April 12, 2025
Court Found Prima Facie Evidence of Offences
Based on the private complaint, the Delhi court held that seven accused, including the company Young Indian, had committed offences under various sections of the Indian Penal Code. These included charges of cheating, criminal breach of trust, dishonest misappropriation of property, and criminal conspiracy.
The ED further alleged that AJL was originally allotted land in multiple cities at concessional rates for the purpose of publishing newspapers. However, it ceased its publishing activities in 2008. After that, the properties began to be used for commercial activities, which the ED claims violated the terms under which the properties were originally granted.
Details of Alleged Financial Misconduct
The financial irregularities stem from a loan amounting to ₹90.21 crore, which AJL had received from the All India Congress Committee (AICC). Instead of recovering the loan, AICC wrote it off and transferred it to Young Indian Private Limited for just ₹50 lakh. At the time, Young Indian had little to no income or assets.
Once the loan was acquired, Young Indian demanded either repayment of the ₹90.21 crore or the issuance of shares in AJL. In response, AJL held an Extraordinary General Meeting and passed a resolution to increase its share capital. Fresh shares worth ₹90.21 crore were then issued to Young Indian. This move dramatically reduced the shareholding of over 1,000 existing shareholders to only 1%, effectively handing control of AJL—and its vast property portfolio—to Young Indian.
As a result of this transaction, Young Indian gained significant control over AJL’s properties, a move the ED claims was executed to unlawfully acquire valuable real estate assets that were meant for journalistic purposes.
ED’s Summary of Assets Involved
According to the ED’s findings, AJL continues to possess immovable properties valued at ₹661.69 crore across Delhi, Mumbai, and Lucknow. Additionally, Young Indian’s equity investment in AJL is considered to be part of the proceeds of crime, estimated at ₹90.21 crore.
In total, the agency has linked assets worth over ₹750 crore to the alleged money laundering scheme. The ED contends that these were obtained through deceitful practices and under the pretext of managing the affairs of a media organization.
Congress Response and Political Ramifications
While there has been no fresh response from Congress leaders at the time of writing, the party has previously dismissed the allegations as politically motivated. Congress has accused the ruling government of misusing central investigative agencies to target political opponents.
The case has had wide political ramifications, as it involves some of the most prominent figures in the Congress party. The outcome of the ongoing investigation could significantly influence the public narrative ahead of upcoming elections.
