ED Shocks Congress-Linked Companies: ₹752 Crore Properties Attached

The Enforcement Directorate attached properties worth ₹751.9 crore in connection with the money-laundering case against the Congress party’s ‘Young Indian’ that owns National Herald Newspaper.

ED released a statement that a provisional order was issued against the newspaper’s publisher Associated Journals Ltd and its holding company Young India under the Prevention of Money Laundering Act.

The ED reportedly found that ‘Associated Journals Ltd is in possession of proceeds of crime in the form of immovable properties that are spread across Delhi, Lucknow, and Mumbai and worth up to ₹661.69 crore.

Congress leader Sonia Gandhi and Rahul Gandhi were questioned earlier by the Enforcement Directorate.

What Is the National Herald Case?

The ED started investigating the money laundering case following a complaint in 2014. It is about Young India Ltd acquiring Associated Journals which was established by freedom fighters in 1937 and had been publishing the National Herald Newspaper. On April 2, 2008, AJL suspended publication of the newspapers. By the end of 2010, AJL owed Rs 90.21 crores to the Congress in loans.

On November 23, 2010, a new company named Young Indian was registered by two directors, with two partners, Suman Dubey and Satyan Gangaram Pitroda (Sam Pitroda).

On December 13, 2010, Rahul Gandhi was also appointed the director of the company. A few days later, the All India Congress Committee (AICC) agreed to transfer all of the AJL loans to the newly incorporated Young Indian. In January 2011, Sonia Gandhi assumed the directorship of Young Indian; by this time, Sonia and Rahul Gandhi each controlled 36 percent of Young India shares.

The Income Tax assessment alleges that the Gandhi family controlled Young Indian acquired full control over the real estate properties of AJL worth hundreds of crores by only playing 50 lakhs.