The National Herald case has evolved into one of the most politically charged legal battles involving top Congress leaders, including Sonia Gandhi and Rahul Gandhi. Spanning over 16 years, the case concerns the alleged illegal takeover of properties worth hundreds of crores by Young Indian Pvt Ltd (YI), a company closely held by the Gandhis.
The Enforcement Directorate (ED), the Income Tax Department and the courts have all been drawn into the complex web of financial, legal and political arguments.
A timeline from 2008 to 2024, as pieced together from documents, ED actions and how Rahul Gandhi and Sonia Gandhi became accused –
2008
Associated Journals Ltd (AJL) — the company that once published the National Herald newspaper — had ceased publication but retained real estate assets across the country. Congress party reportedly gives interest-free loans worth Rs 90 crore to AJL to pay off liabilities.
2010
Young Indian Pvt Ltd (YI) is incorporated. Shareholding: Sonia Gandhi and Rahul Gandhi hold 38% each, with the rest split between Motilal Vora and Oscar Fernandes.
YI acquires 100% of AJL’s shareholding by taking over the Rs 90 crore loan for just Rs 50 lakh — triggering allegations of “quid pro quo.”
2011
BJP leader Subramanian Swamy files a complaint in a trial court, alleging criminal misappropriation and fraud by Congress leaders in the takeover of AJL by YI. He alleges that AJL’s real estate worth over Rs 750 crore was illegally acquired.
2012
Delhi High Court issues notice to Sonia and Rahul Gandhi based on Swamy’s complaint.
2014
Income Tax Department opens probe into the deal. I-T notes that Young Indian is not a charitable company and that the Gandhis had benefitted from the transaction. Swamy’s case is taken up for detailed hearing in trial court.
2015
The court summons Sonia Gandhi, Rahul Gandhi and five others, including Motilal Vora, Oscar Fernandes and Suman Dubey.
2016–2017
The accused appear before court; they are granted bail. Congress terms the case politically motivated, alleging misuse of agencies.
2018
ED registered a Prevention of Money Laundering Act (PMLA) case, based on the I-T findings and Swamy’s complaint.
2020
Congress leader Pawan Bansal, who was managing AJL affairs, is questioned. ED begins examining the link between Congress funds and real estate acquisitions by AJL.
2022
In June, ED summoned Rahul Gandhi for questioning. Rahul is grilled for five consecutive days, with over 50 hours of interrogation.
In July, Sonia Gandhi appeared before ED for three rounds of questioning. Mallikarjun Kharge, who was an AJL board member, also appears before ED.
Properties of AJL in Delhi, Mumbai and Lucknow come under scrutiny.
2023
ED provisionally attaches properties worth over Rs 750 crore, claiming they are proceeds of crime. A major ED action takes place in Delhi and Mumbai, with searches at AJL and YI offices.
Congress holds protests and accuses the BJP government of targeting the opposition.
2024
In early 2024, ED conducts fresh rounds of questioning, including Congress functionaries and former office-bearers of AJL.
ED files a fresh complaint under PMLA, naming Sonia, Rahul, and others. Congress files a response in court denying all allegations and asserts that all transactions were transparent and lawful.
Nature of the Allegations
The central allegation is that Congress party funds were used to wipe out AJL’s liabilities, and in return, Young Indian acquired AJL’s real estate assets across major cities — without paying actual fair market value.
ED alleges this amounts to money laundering and criminal breach of trust. Congress contends that AJL continues to serve a journalistic purpose, and no assets were transferred for personal gain.
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