What's Next in the National Herald Case? Court Deliberates on High-Profile Money Laundering Allegations

Court Reserves Verdict in National Herald Case

In New Delhi, a court has postponed its decision regarding the prosecution complaint submitted by the Enforcement Directorate (ED) concerning the alleged money laundering linked to the National Herald case.

This prominent case involves several high-profile individuals, including Sonia Gandhi, the Chairperson of the Congress Parliamentary Party, Rahul Gandhi, the Leader of Opposition in the Lok Sabha, and others, who are accused under the Prevention of Money Laundering Act (PMLA).

After listening to arguments from both the ED and the accused parties, including the Gandhi family, Special Judge Vishal Gogne has scheduled the ruling for July 29.

During the proceedings, Additional Solicitor General S.V. Raju, representing the ED, asserted that Young Indian Ltd, where Sonia and Rahul Gandhi hold majority shares, was allegedly utilized to misappropriate approximately ₹2,000 crore worth of National Herald assets by acquiring them for a mere ₹50 lakh.

Raju further claimed that Young Indian operates merely as a facade, with the other accused acting as puppets for the Gandhi family.

The ED's investigation suggests that a conspiracy was orchestrated to establish Young Indian, aimed at gaining control over the extensive assets of the now-defunct newspaper, purportedly for the personal benefit of senior Congress leaders.

The agency indicated that numerous senior Congress figures were implicated in fraudulent transactions involving Associated Journals Limited (AJL), the original publisher of the National Herald.

Raju informed the court that individuals had been making fraudulent advance rent payments over several years, directed by senior Congress officials, using fabricated receipts.

The ED's complaint alleges that through a malicious takeover, Congress leaders misappropriated AJL's property and converted public trusts into personal assets.

Conversely, senior advocate Abhishek Manu Singhvi, representing Sonia Gandhi, characterized the money laundering claims as 'strange' and 'unprecedented,' arguing that no tangible assets were involved.

Rahul Gandhi contended that the All India Congress Committee's efforts to revive the historic newspaper were misinterpreted as attempts to liquidate its assets.

Emphasizing the non-profit nature of the organization, senior advocate R.S. Cheema, representing Rahul Gandhi, stated that the National Herald was never intended to be a commercial entity and that the AICC aimed to restore the newspaper's former glory.

The controversy surrounding the National Herald's assets gained traction in 2012 when BJP leader Subramanian Swamy lodged a complaint in a trial court, alleging that Congress leaders had committed cheating and breach of trust during the acquisition of AJL.