ED moves to confiscate Rs 700 crore assets linked to Sonia, Rahul Gandhi in National Herald case

The Enforcement Directorate (ED) has begun proceedings to seize the properties that Congress leaders Sonia Gandhi and Rahul Gandhi are associated with, in connection with the National Herald money laundering case. The properties worth Rs 988 crore, it is reported, have their supposed link to Associated Journals Ltd (AJL), which was previously brought out by the National Herald newspaper.

Background of the case

The case started in 2012 when BJP politician Subramanian Swamy approached the court with a complaint claiming that Sonia Gandhi, Rahul Gandhi, and other top Congress leaders illegally obtained AJL's properties using Young Indian Limited (YIL) at a cost of just Rs 50 lakh. . These properties were estimated at more than Rs 2,000 crore. In 2021, the ED opened a probe against suspected financial wrongdoing and diversion of funds involved in acquiring AJL. 

ED's investigation and seizure

The ED investigation found Rs 988 crore proceeds of money laundering in AJL properties. The agency provisionally attached immovable properties worth Rs 661 crore in Delhi, Mumbai, and Lucknow and AJL shares worth Rs 90.2 crore in November 2023. Seizure was carried out on April 10, 2024. ED also issued notice to property registrars in Delhi, Mumbai, and Lucknow where AJL properties are located, bought by YIL. 

Allegations of financial irregularities

The ED charges that the AJL-Young Indian Network was utilized for collecting funds in the form of spurious donations, advance rent, and advertisements. The network collected Rs 18 crore in the form of spurious donations, Rs 38 crore advance rent, and Rs 29 crore in the form of advertisements, the agency claims. The ED says it has found documents indicating further layers of financial misconduct. The agency's latest action is intended to prevent the continued use, consumption, and further production of the allegedly tainted assets.

Key Players Involved

• Rahul Gandhi: Congress party leader and beneficial owner of Young Indian Limited
• Subramanian Swamy: Party leader who filed the first complaint
• Enforcement Directorate (ED): The agency tasked with investigating money laundering cases

Reactions and developments

The case has generated heated political controversy, with the Congress party alleging that the government is misusing investigative agencies. The action of the ED has been welcomed by the BJP, which asserts that the Gandhi family has indulged in corrupt activities. The Supreme Court had directed an investigation into the case, and in spite of legal objections, both the Delhi High Court and the Supreme Court permitted the investigation to go ahead. The ED has conducted searches and seizures in a number of places, which revealed evidence of financial malpractices.

The case is significant to the Congress party and the Gandhi family

The National Herald case has become a huge controversy with the recent move by ED to confiscate the properties of the Gandhi family. The case reveals the suspected financial improprieties and misuse of funds in relation to the acquisition of AJL. As the probe continues, the ED attempts to uncover more evidence and prosecute the culprits. The case is a significant one to the Gandhi family as well as the Congress party, and its outcome will be eagerly watched by political observers as well as the general public.