The ED Today (July 3) told a Delhi court that Sonia and Rahul Gandhi used Young Indian to quietly take control of assets worth Rs 2,000 crore. The agency called it a clear case of money laundering in the National Herald case.
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NEW DELHI: In the National Herald case, the Enforcement Directorate (ED) informed a Delhi’s Rouse Avenue Court on Thursday that the company Young Indian, whose majority owners are Sonia Gandhi and Rahul Gandhi, was only another name for the Congress Party and was made to hide the party’s involvement in the case.
According to the ED, Young Indian fraudulently took over properties worth Rs 2,000 crore belonging to Associated Journals Limited (AJL). AJL was the publisher of the National Herald newspaper.
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In return, Young Indian only paid Rs 90 crore as a loan, which has raised serious concerns about how the transaction was done.
On the second day of the hearing in this case, Additional Solicitor General (ASG) SV Raju, who is appearing on behalf of the ED, told the court that this is a “classic case of money laundering”.
ASG Raju said,
“Young Indian was another face of Congress. It was created to avoid the limelight on a national party. Sonia Gandhi and Rahul Gandhi are holding 100% of Young Indian as other shareholders have died.”
The ED believes that the real reason for creating Young Indian was not business or charity, but only to silently take control of AJL’s massive property worth Rs 2,000 crore, which originally belonged to the National Herald newspaper group.
The loan amount of Rs 90 crore shown in the books, the ED argues, was just a way to cover up the real purpose.
“I completed my arguments subject to my rejoinder. The other side was to argue at 2:30 PM, but it was inconvenient, so they’ve asked them till tomorrow. It’s an open and shut case. Young Indian was used for the purpose of usurping properties worth almost Rs 2,000 crores of AJL, and that’s our case, and it is documented. It’s an open and shut case.”
-ASG S V Raju said today to the media after the hearing.
YESTERDAY IN DELHI COURT
On July 2, The Enforcement Directorate (ED) told a Delhi court that Congress leaders Sonia Gandhi and Rahul Gandhi took full control of Associated Journals Limited (AJL), the company that publishes the National Herald newspaper, by paying just Rs 50 lakh, while the company’s real estate is worth over Rs 2,000 crore.
The statement was made by Additional Solicitor General (ASG) SV Raju before Special Judge (PC Act) Vishal Gogne at Delhi’s Rouse Avenue Court.
The court is currently hearing whether it should take official notice of the ED’s prosecution complaint in the National Herald money laundering case.
ASG Raju informed the court that AJL owns valuable properties across several cities including Delhi, Lucknow, Bhopal, Indore, Panchkula, and Patna.
He stated that these properties were originally given by the Central and State governments after 1947 for the purpose of newspaper printing and publishing.
He said that after Young Indian, a company controlled by the Gandhi family, took over AJL, they declared that they would not be continuing with any kind of newspaper publishing, including the National Herald.
ASG Raju quoted this by saying,
“To take over the entire company of Rs 2000 crores, they paid Rs 50 lakhs.”
He also claimed that after the takeover, individuals close to Sonia and Rahul Gandhi were made directors of AJL, and fraudulent financial transactions were carried out to shift the company’s money improperly.
The court was told that the case involves serious allegations, including that the Congress party had given a Rs 90-crore loan to AJL, which was later transferred to Young Indian for only Rs 50 lakh.
According to the ED, this resulted in the Gandhi family’s company getting control over properties worth more than Rs 2,000 crore, without paying a fair amount.
ASG Raju highlighted,
“AJL owns properties in Delhi, Lucknow, Bhopal, Indore, Panchkula, Patna and other places, and all these properties have been provided by the Central government and various State governments after 1947 for newspaper printing and publishing.”
He also told the court that,
“Soon after taking over AJL, Young Indian (an entity controlled by the Gandhis) declared that it would not indulge in any newspaper publishing including the National Herald.”
In summary, the ED believes that a large real estate asset owned by AJL was taken over at an extremely low cost, through unfair and dishonest means.
The agency has filed a prosecution complaint against Sonia Gandhi, Rahul Gandhi, Sam Pitroda, and others involved.
The legal issue began when former Union Minister Subramanian Swamy filed a private complaint accusing Sonia Gandhi, Rahul Gandhi, Motilal Vora, Oscar Fernandes, Suman Dubey, Sam Pitroda, and Young Indian of cheating, criminal conspiracy, breach of trust, and misusing property.
Background of the Case
The National Herald case revolves around the alleged misuse of funds and property by senior Congress leaders, including Sonia Gandhi and Rahul Gandhi. The controversy began when the Congress party gave a loan of Rs 90 crore to Associated Journals Limited (AJL), the company that originally published the National Herald newspaper.
AJL had stopped publishing the paper years earlier but continued to own valuable real estate across India, which had been allotted to it by the government for press-related activities.
In 2010, a new company named Young Indian Pvt Ltd was incorporated, with Sonia Gandhi and Rahul Gandhi holding majority shares.
AJL’s debt of Rs 90 crore was later assigned to Young Indian for just Rs 50 lakh, effectively giving Young Indian control over all of AJL’s assets, which were worth over Rs 2,000 crore.
This transaction raised serious questions about financial irregularities and alleged misappropriation of assets. In 2012, former Union Minister Subramanian Swamy filed a private complaint, accusing the Gandhis and others of criminal conspiracy, cheating, and breach of trust.
The case was taken up for investigation under the Prevention of Money Laundering Act (PMLA) by the Enforcement Directorate (ED), which claims the transaction was a deliberate attempt to gain control of prime properties through unlawful means.
Case Title:
Enforcement Directorate v. Young Indian and Others
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