National Herald case: ED files chargesheet against Sonia Gandhi, Rahul
What's the story
The Enforcement Directorate (ED) has filed a chargesheet against Sonia Gandhi and Rahul Gandhi in its ongoing investigation in the National Herald case.
This action came after the ED began the process of seizing assets worth ₹661 crore of Congress-controlled Associated Journals Limited (AJL), which runs the National Herald newspaper and digital platform.
The assets are located in Delhi, Mumbai, and Lucknow.
Order
Hearing date
A special court has set April 25 as the hearing date.
"The present prosecution complaint shall next be taken up for consideration on the aspect of cognizance... when Special Counsel for the ED and the Investigating Officer shall also ensure production of the case diaries for perusal by the court," special judge Vishal Gogne said while passing the order.
Asset seizure
ED's investigation into Young Indian's acquisition of AJL
AJL is controlled by Young Indian Private Limited, a company where Sonia and Rahul hold a 38% stake.
The ED is looking into alleged financial irregularities in the purchase of AJL by Young Indian.
Both the Gandhis have been questioned multiple times as part of its investigation into the deal.
Legal proceedings
ED's action under Prevention of Money Laundering Act
The action by the ED has been taken under Section 8 and Rule 5(1) of the Prevention of Money Laundering Act (PMLA), which deals with the procedure for taking possession of attached properties that have been confirmed by the Adjudicating Authority.
Under this, occupants of such properties have been asked to vacate them.
One such notice was sent to Jindal South West Projects Limited, which currently occupies floors seven to nine in Mumbai's Herald House building.
Property attachment
ED's provisional attachment of AJL's properties
Other properties under investigation include high-end real estate in Delhi, Mumbai, and Lucknow, as well as the iconic Herald House on Bahadur Shah Zafar Marg in downtown Delhi.
In November 2023, the ED provisionally attached AJL's immovable properties worth ₹661 crore, along with AJL's shares worth ₹90.2 crore.
These were confirmed by the Adjudicating Authority in April 2024, the Economic Times reported.
Conspiracy charges
Allegations of fraudulent acquisition of AJL's assets
The case stems from a 2014 order by a Metropolitan Magistrate at Patiala House Court, based on a complaint by BJP leader Subramanian Swamy.
The complaint alleged that Sonia and Rahul, along with others, had entered into a criminal conspiracy to fraudulently acquire AJL's assets—worth over ₹2,000 crore—for a mere ₹50 lakh.
The ED has also conducted several searches and seizures in its investigation and concluded that Young Indian had acquired AJL's extensive assets at a grossly undervalued price.