ED Files Chargesheet Against Sonia and Rahul Gandhi in Rs 5,000 Crore National Herald Money Laundering Case

In a significant development, the Enforcement Directorate (ED) has filed a prosecution complaint—equivalent to a chargesheet—against Sonia Gandhi, Rahul Gandhi, and others in the National Herald money laundering case. The case involves alleged proceeds of crime valued at Rs 5,000 crore.

Court Sets April 25 for Cognisance

The special MP/MLA court in Delhi has scheduled April 25 as the date for hearing on the cognisance of the chargesheet.

The ED’s complaint lists Sonia Gandhi and Rahul Gandhi as accused numbers one and two, respectively. Both Congress leaders are currently out on bail and had previously tried unsuccessfully to have the ED proceedings dismissed.

Accused Include Close Associates

According to ED sources, the chargesheet names five individuals and two companies. One of the companies is Young Indian, in which the Gandhis hold a controlling stake.

Among the individuals listed are Sam Pitroda, head of Congress’s overseas branch, and Suman Dubey, both of whom are family friends of the Gandhis.

Judge Vishal Gogne stated, “The present prosecution complaint shall next be taken up for consideration, on the aspect of cognisance… when Special Counsel for the ED and the Investigating Officer shall also ensure production of the case diaries for perusal by the court.”

This marks the first time Sonia and Rahul Gandhi have been formally chargesheeted in this case.

Congress Alleges Political Conspiracy

While the Gandhis have not commented publicly, Congress leader Adhir Ranjan Chowdhury claimed the action was part of a “conspiracy” by Prime Minister Narendra Modi.

“This is PM Modi’s conspiracy to destroy the Congress… we are not afraid of the BJP and PM Modi… we will fight this…,” he said.

Seizure Notices for Attached Properties

On April 13, the ED issued possession notices for immovable properties worth Rs 661 crore that were previously attached in November 2023.

These properties are located in Delhi, Mumbai’s Bandra area, and in Lucknow, including the National Herald House on Bahadur Shah Zafar Marg in Delhi.

Origins of the Case

The ED launched its investigation in 2021, following a 2014 Delhi court order based on a private complaint by BJP leader Subramanian Swamy.

He had alleged a criminal conspiracy by senior Congress leaders, including Sonia and Rahul Gandhi, to fraudulently acquire assets of Associated Journals Limited (AJL), valued at over Rs 2,000 crore.

AJL, which publishes the National Herald, is owned by Young Indian. Sonia and Rahul Gandhi each own 38% of Young Indian, making them majority stakeholders.

Robert Vadra Also Under Investigation

The chargesheet’s filing followed the ED’s questioning of businessman Robert Vadra, husband of Priyanka Gandhi Vadra and brother-in-law of Rahul Gandhi.

Vadra was interrogated over a money laundering case linked to a real estate deal in Haryana. He described the case as “political vendetta,” saying he had fully cooperated with investigators.

Congress Claims Political Targeting

The Congress and other opposition parties have repeatedly accused the Modi government of misusing investigative agencies like the ED to target political opponents, especially during election periods.

Slogans like “jab Modi darta hai, ED ko aage karta hai” were chanted during Vadra’s appearance at the ED office.

Focus of the Chargesheet

The ED has charged Sonia and Rahul Gandhi under Section 4 of the Prevention of Money Laundering Act (PMLA), which carries a maximum prison term of seven years.

The agency alleges that Congress leaders and principal officers of AJL and Young Indian conspired to acquire AJL’s assets worth Rs 2,000 crore for just Rs 50 lakh.

The chargesheet outlines that the Congress had earlier given AJL a loan of Rs 90.21 crore.

This debt was later converted into Rs 9.02 crore worth of equity shares, which were then transferred to Young Indian for Rs 50 lakh. With Sonia and Rahul holding a combined 76% stake in Young Indian, the ED claims they became the beneficial owners of AJL’s assets.

No Charitable Work by Young Indian

The ED probe further reveals that Young Indian, registered under Section 25 of the Companies Act as a not-for-profit entity, did not conduct any charitable activities.

The agency has pegged the identified proceeds of crime at Rs 988 crore, though the current value of the assets is estimated at Rs 5,000 crore.

Historical Background

AJL was originally founded by India’s first Prime Minister, Jawaharlal Nehru.

The case originated from a 2013 petition by Subramanian Swamy and gained momentum after a trial court allowed the Income Tax department to assess the financial dealings related to the National Herald.

The court’s decision on April 25 will determine the next steps in a case that has significant political ramifications.