The Economic Offences Wing (EOW) of the Delhi Police has registered a fresh FIR against Congress leaders Sonia Gandhi and Rahul Gandhi in the National Herald case. According to the complaint, a criminal conspiracy was allegedly orchestrated to fraudulently acquire Associated Journals Limited (AJL), a company linked to the Congress party.
The FIR, based on a complaint filed by the Enforcement Directorate (ED) on October 3, also names six other individuals and three companies as accused. The ED had shared its investigation findings with the Delhi Police, and under Section 66(2) of the PMLA, it can direct another agency to register a scheduled offence.
The FIR was filed based on a report by the Enforcement Directorate (ED) submitted to the EOW on June 30, 2024. The report stated that serious irregularities were committed in the transactions between Associated Journals Limited (AJL) and Young Indian Private Limited (Young Indian).
Accused listed in FIR
The FIR also names Indian Overseas Congress Chief Sam Pitroda and three other individuals, along with three companies - Associated Journals Limited (AJL), Young Indian, and Dotex Merchandise Private Limited.
The police has pressed charges under sections 120B (criminal conspiracy), 403 (dishonest misappropriation of property), 406 (punishment for criminal breach of trust) and 420 (cheating) of the IPC in the FIR that names the Gandhis, Congress leaders Suman Dubey and Sam Pitroda, entities like the Young Indian (YI) and Dotex Merchandise Ltd, Dotex promoter Sunil Bhandari, Associated Journals Ltd. (AJL) and unknown others.
Dotex, a Kolkata-based shell company, allegedly provided Rs 1 crore used in forming Young Indian, a not-for-profit company in which the two Congress leaders held 76 per cent shareholding. It is alleged that through this transaction, Young Indian took control of AJL—which held assets worth around Rs 2,000 crore—by paying just Rs 50 lakh to the Congress.
What did the FIR state?
According to the FIR, the Congress Party (AICC) initially provided a loan of approximately Rs 90 crore to AJL. However, the "right to recover the debt" was later transferred to Young Indian for a mere Rs 50 lakh. This deal opened the way for Young Indian to gain control over several valuable properties owned by AJL. Sonia Gandhi and Rahul Gandhi were among the company's directors. The FIR claims that both leaders had influence over Young Indian and the entire process appears to be a pre-planned scheme.
The ED report states that the total market value of the properties that benefited Young Indian could exceed Rs 2,000 crore. These properties are located in prime locations in several major cities, including Delhi, Mumbai, Lucknow, and Patna. are located at. ED says that this was not a normal business deal, but as part of a "master plan" properties worth crores were transferred at a very low price.
The EOW has invoked sections 420 (cheating) and 120B (criminal conspiracy) of the IPC in the FIR. According to them, the transfer of a loan of Rs 90 crore for just Rs 50 lakh raises serious questions in itself. According to the documents, Young Indian got control over lands and buildings worth thousands of crores along with AJL shares.
The FIR surfaced a day after the Delhi court deferred the pronouncement of its decision in the National Herald case to December 16.
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.
Also Read: National Herald Case hearing adjourned: Delhi court defers ED chargesheet cognisance to December 16
Also Read: National Herald case: ED flags 'fake money transfers' to firm linked to Sonia, Rahul Gandhi
