National Herald case: In a significant development in the high-profile National Herald case, the Enforcement Directorate (ED) has filed a chargesheet against Congress leaders Sonia Gandhi and Rahul Gandhi, along with several others, accusing them of laundering Rs 988 crore. The chargesheet was submitted before Delhi's Rouse Avenue Court under multiple sections of the Prevention of Money Laundering Act (PMLA). The chargesheet named Sonia Gandhi, the former Congress president, as accused no. 1, while her son Rahul Gandhi, who is also the Leader of Opposition in the Lok Sabha, as accused no 2.
Reacting strongly to the ED's action, the Congress party has denounced it as an act of "vendetta politics". The party further alleged that the seizure of assets in the case was nothing short of a "state-sponsored crime disguised as the rule of law." The special court presided over by Judge Vishal Gogne took cognisance of a chargesheet submitted by the Enforcement Directorate on April 9, in connection with the case. The court has scheduled the next hearing for April 25.
The chargesheet has named several people and entities linked to the Congress party, including party associates Suman Dubey and Sam Pitroda. Also listed as accused are the companies Young Indian and Dotex Merchandise Pvt Ltd, along with Sunil Bhandari, a representative of Dotex Merchandise. According to the ED, the charges invoked fall under Sections 44 and 45 of the PMLA under Section 3 of the Act, which defines the offence of money laundering. The agency has also invoked Section 70 of the Act, which pertains to offences committed by companies, thereby attempting to establish the vicarious liability of the concerned office bearers. The ED is seeking punitive action under Section 4 of the PMLA, which allows for imprisonment of up to seven years.
What did the ED say in its chargesheet?
In its chargesheet, the central agency has relied on a 2017 assessment order from the Income Tax Department to back its allegations. It claims that key members of the All India Congress Committee (AICC), in coordination with principal officials of Associated Journals Limited (AJL) and Young Indian, hatched a criminal conspiracy to gain control of AJL's assets, which are estimated to be worth around Rs 2,000 crore. Notably, AJL is an unlisted public company historically associated with the publication of the National Herald newspaper.
What is the National Herald case?
The National Herald was a newspaper launched by Jawaharlal Nehru and fellow freedom fighters in 1938. It was founded with an aim to represent the views of the liberal faction within the Indian National Congress. Published by Associated Journals Limited, the newspaper evolved into a key mouthpiece for the Congress party post-Independence. In addition to the English daily, AJL also brought out Hindi and Urdu publications. However, by 2008, the National Herald ceased operations after being burdened with debts exceeding Rs 90 crore.
The controversy surrounding its assets gained momentum in 2012 when BJP leader and lawyer Subramanian Swamy lodged a complaint in a trial court. He alleged that certain Congress leaders had committed cheating and breach of trust in the process of acquiring AJL. According to Swamy, the firm Young Indian Ltd had acquired control over the National Herald's assets through what he termed a "malicious" takeover.