Sonia Gandhi and son Rahul, the ED alleged, orchestrated a “criminal conspiracy” to “usurp” properties of National Herald’s publisher Associated Journals Ltd (AJL)
Former Congress president Sonia Gandhi and son Rahul Gandhi have been listed as accused number 1 and 2 in the prosecution complaint after the Enforcement Directorate filed a chargesheet against them and others in connection with alleged money laundering in the National Herald case.
The charges were filed under various sections of the Prevention of Money Laundering Act (PMLA), and Sonia and Rahul Gandhi could face a jail term of up to 7 years in case they are convicted.
The chargesheet also names Congress associates Suman Dubey and Sam Pitroda, the companies Young Indian and Dotex Merchandise Private Limited, and Sunil Bhandari of Dotex Merchandise as accused, The Hindustan Times reported.
What is The National Herald Case?
The National Herald case is a high-profile legal matter involving allegations of financial misconduct against senior leaders of the Indian National Congress party, notably Sonia Gandhi and Rahul Gandhi.
Origins of the National Herald Case
In 2012, Bharatiya Janata Party (BJP) leader Subramanian Swamy filed a complaint alleging that Congress leaders were involved in cheating and breach of trust in the acquisition of Associated Journals Ltd (AJL) by Young Indian Ltd (YIL). AJL, which published the National Herald newspaper, had ceased operations in 2008 but retained valuable real estate assets. Swamy’s complaint suggested that YIL, a company in which Sonia and Rahul Gandhi each held a 38% stake, acquired AJL’s assets through questionable means.
What are the charges against Sonia Gandhi and Rahul Gandhi?
The Enforcement Directorate (ED), citing a 2017 Income Tax assessment order, has alleged in its chargesheet that key office-bearers of the All India Congress Committee (AICC), along with the principal officers of Associated Journals Limited (AJL) and Young Indian, orchestrated a “criminal conspiracy” to take over properties worth Rs 2,000 crore belonging to AJL, an unlisted public company, news agency PTI reported.
The ED alleges that the All India Congress Committee (AICC) extended an unsecured loan of Rs 90.21 crore to AJL, which was later converted into equity shares worth Rs 9.02 crore. These shares were then transferred to YIL for a nominal sum, effectively granting Sonia and Rahul Gandhi control over AJL’s assets. The ED contends that this maneuver amounted to money laundering and misappropriation of funds.
Recent Developments
The ED filed a chargesheet against Sonia and Rahul Gandhi earlier this month, marking a significant escalation in the case. The agency has initiated proceedings to seize properties valued at over Rs 700 crore linked to AJL.
The Congress party has denounced these actions as politically motivated, accusing the ruling government of using investigative agencies to target opposition leaders.
Political Implication
The National Herald case has intensified the political rivalry between the Congress and the BJP. While the BJP portrays the case as a crackdown on corruption, the Congress views it as an attempt to suppress dissent and weaken the opposition ahead of upcoming elections.
Meanwhile, the Congress party is staging nationwide protests against the ED filing the chargesheet against Sonia and Rahul Gandhi terming the move “political vendetta”.
BJP MP Ravi Shankar Prasad, on the other hand, hit back at the Congress for playing the victim card and said neither Sonia Gandhi nor Rahul Gandhi is above the law of the land.
“Congress party has the right to protest, but it does not have the right to misappropriate government properties and give it to the National Herald… A corporate conspiracy was hatched in a very interesting way to get this entire property into the hands of the family… And what are these properties- one property on Bahadur Shah Zafar Marg in Delhi, properties in Mumbai, Lucknow, Bhopal, and Patna. Young India Limited was supposed to be a charitable organization, but till now, it is not known what charity it did… Writing off Rs 90 crores for Rs 50 lakhs and acquiring property worth thousands of crores…,” news agency ANI quoted him as saying.
“One thing should be kept in mind that Rahul Gandhi and Sonia Gandhi are out on bail. They knocked on the doors of the High Court and Supreme Court to quash the case but did not get any relief… Rahul Gandhi and Sonia Gandhi should answer whether the law should be allowed to take its course or not? … Narendra Modi’s government will let the law do its work… Sardar Patel had said that the kind of people giving money to the National Herald were not good people… Still, why a newspaper which had the full protection, promotion, and patronage of the Congress party could not at all flourish? Because this newspaper was only an instrument to collect advertisements and to build properties through government cooperation… The newspaper, which was supposed to strengthen the voice of the people fighting for independence, they turned that newspaper into a private business, an ATM!” he further stated.
