Rahul and Sonia Gandhi Charged with Criminal Conspiracy in National Herald Money Laundering Case

In 2012, BJP leader Subramanian Swamy filed a case against Rahul Gandhi and Sonia Gandhi, marking the beginning of the National Herald controversy.

Senior Congress leaders Rahul Gandhi and Sonia Gandhi now face charges of criminal conspiracy in the National Herald money laundering case. These serious allegations appear in a new First Information Report (FIR) filed by the Economic Offences Wing of the Delhi Police, targeting six individuals including the Gandhis.

The FIR names several other individuals: Sam Pitroda, Suman Dubey, Sunil Bhandari, and an unidentified person. Three companies are also implicated: Associated Journals Limited (AJL), Young Indian, and Dotex Merchandise Private Limited. According to the accusations, these parties engaged in a criminal conspiracy to "fraudulently take over the Associated Journals Limited (AJL)," which owned the now-defunct National Herald newspaper.

Reportedly, Dotex Merchandise, described as a Kolkata-based shell company, provided Rs 1 crore to Young Indian, a not-for-profit organization where the Gandhi leaders held 76 percent shareholding. Through this transaction, Young Indian allegedly paid Rs 50 lakh to the Congress party and gained control of AJL, which possessed assets valued at approximately Rs 2,000 crore.

Filed on October 3, the FIR stems from a complaint by the Enforcement Directorate (ED), which shared its investigation findings with Delhi Police. Under Section 66(2) of the Prevention of Money Laundering Act (PMLA), the ED has authority to request any agency to register and investigate scheduled offences.

This FIR became public just one day after a Delhi court postponed its decision in the National Herald case until December 16.

BJP spokesperson Shehzad Poonawalla attacked the Congress party, referring to it as 'I Need Corruption' and 'I Need Chori'. He stated, "The first family of the Congress is the most corrupt family. They practise corruption and think it is their right. Whenever there is any kind of action, they start playing victim card."

The National Herald Case originated in 2012 when BJP leader Subramanian Swamy filed a complaint in a local court. He alleged that Congress leaders committed cheating and breach of trust in acquiring Associated Journals Limited, which published the National Herald newspaper. Founded by Jawaharlal Nehru and other freedom fighters in 1938, the publication ceased printing in 2008 due to financial difficulties.

When publication ended, the parent company AJL faced an unpaid debt of Rs 90 crore. According to Congress sources, to help AJL overcome this financial crisis, the Congress party provided a loan of Rs 90 crore over ten years, delivered in approximately 100 installments.

The Congress party claims that neither National Herald nor AJL could repay this loan, resulting in its conversion to equity shares. Since political parties cannot legally own equity shares, these were allocated to Young Indian, a not-for-profit company established in 2010.

The Gandhis each own 38 percent shares in Young Indian, with remaining shares held by Motilal Vora, Oscar Fernandes, Sam Pitroda, and Suman Dubey. Through this arrangement, Young Indian became the majority shareholder of AJL, with the two Gandhi leaders serving as its directors.

The Enforcement Directorate alleges that the total proceeds of crime exceed Rs 5,000 crore, with Rs 2,000 crore representing AJL's asset value. The agency has already attached Rs 661 crore worth of immovable properties and Rs 90.2 crore in AJL shares.

The ED's investigation builds upon a 2017 Income Tax order that identified over Rs 414 crore in alleged tax evasion connected to the transfer of AJL's assets to Young Indian.

The ED's money trail examination reportedly uncovered Rs 18.12 crore in fake donations raised to pay Young Indian's tax liabilities, Rs 38 crore in fabricated "advance rent," and Rs 29 crore in non-genuine advertisements.

The investigation also suggests involvement of political figures, including DK Shivakumar and Telangana Chief Minister Revanth Reddy, in facilitating donations to Young Indian. Shivakumar allegedly contributed Rs 25 lakh personally and Rs 2 crore through a trust, while Reddy purportedly convinced several individuals to donate approximately Rs 80 lakh.

Many advertisers reportedly informed the ED that they placed advertisements—primarily congratulatory messages for senior Congress leaders—at the urging of party leaders rather than for legitimate business purposes.