The Enforcement Directorate (ED) has filed a charge sheet in Delhi's Rouse Avenue Court against Congress MPs Rahul Gandhi, Sonia Gandhi, and Overseas Congress Chairman Sam Pitroda in the National Herald money laundering case. The charge sheet includes names like Suman Dubey, with the hearing set for April 25.
Understanding the Case
BJP leader Subramanian Swamy accused Congress leaders in 2012 of misappropriating Associated Journals Limited (AJL) through Young Indian Limited. Swamy claimed this was done to take control of the Rs 2000 crore Herald House in Delhi. Allegedly, Young Indian Limited was given rights to AJL's assets under this conspiracy.
National Herald, established in 1938 by Jawaharlal Nehru alongside freedom fighters, saw Congress assume its liabilities worth Rs 90 crore on February 26, 2011, effectively offering a loan. Subsequently, Young Indian was formed with Rs 5 lakh, awarding Sonia and Rahul Gandhi each 38% stake, while the late Congress leaders Motilal Vora and Oscar Fernandes held 24%.
Young Indian's Ownership of AJL
AJL's 9 crore shares, valued at Rs 10 each, were transferred to 'Young Indian,' which in return had to repay Congress's loan. With 9 crore shares, Young Indian secured 99% of the company's stake. Congress then waived the Rs 90 crore loan, effectively providing ownership of AJL to Young Indian for free.
Young Indian Limited was initiated in 2010, where Rahul Gandhi served as Director while holding significant shares alongside his mother and other Congress affiliates.
ED's Allegations of Money Laundering
The ED asserts that over Rs 2000 crore of AJL's assets were appropriated via YIL, alleging Rs 988 crore was laundered. Investigations found AJL owned Rs 661.69 crore in immovable properties across India, including Delhi and Mumbai, suspected to be acquired through criminal proceeds. Young Indian reportedly had ill-acquired income amounting to Rs 90.21 crore in equity within AJL.
Investigating the Assets of AJL and Young Indian
The investigation, which commenced in 2021, stemmed from a complaint by BJP’s Swamy, asserting AJL’s assets were procured through YIL for a mere Rs 50 lakh. During the probe, ED uncovered documents pointing to fraudulent donations and financial irregularities.
In April 2022, Congress leader Mallikarjun Kharge and later Pawan Bansal recorded their statements with the ED. The Congress has consistently refuted ED's accusations, suggesting the central government is misusing investigative agencies.
Congress's Defense
Congress justifies its Rs 90 crore disbursement was over nearly a decade, aiding AJL's National Herald with duties like staff wages, and other operational expenses. Emphasizing such loans aren't political faux pas, Congress states National Herald couldn't repay due to revenue shortage, thus transferring AJL's shares to Young Indian, governed by non-profit laws. Its managing committee, including Sonia and Rahul Gandhi, is barred from drawing financial gains or selling shares from Young Indian.
