National Herald case: ED begins process to seize assets worth Rs 660 crore linked to AJL

The agency claimed that its probe has 'conclusively revealed' that top Congress leaders Sonia Gandhi and Rahul Gandhi acquired properties at a meagre amount.

New Delhi: The Enforcement Directorate (ED) on Saturday said it has initiated the process to take possession of National Herald House in Delhi, Nehru Bhavan in Lucknow, and Herald House in Mumbai in connection with the money laundering case involving Congress-controlled Associated Journals Limited (AJL), which publishes National Herald.

It also claimed in a statement that its probe has “conclusively revealed” that top Congress leaders Sonia Gandhi and Rahul Gandhi acquired AJL properties worth Rs 2,000 crores for a mere Rs 50 lakh, “significantly undervaluing” their worth, in the name of Young Indian, in which both had a 38% stake.

The agency went on to allege that its probe also “indicates” that Young Indian and AJL properties were used for the generation of further proceeds of crime in the form of “bogus donations” of Rs 18 crore, “bogus advance rent” of Rs 38 crore, and “bogus advertisements” of Rs 29 crore.

“Therefore, to stop the further generation, utilisation, and enjoyment of the proceeds of crime... the Directorate of Enforcement has initiated the proceedings to take possession of the tainted properties,” the statement said.

These properties were attached after an extensive investigation by the ED, which “revealed significant generation, possession, and use of proceeds of crime” to the tune of Rs 988 crore, it said.

Denying wrongdoing, senior MP and lawyer Abhishek Singhvi said in November 2023 that an assignment of loan without transfer of any immovable property or movement of money is being “dressed up to justify attachment and freezing of assets of a company which runs an iconic voice of Indian independence movement – National Herald – only because it is linked to Congress and its legacy”.

The agency had, on 20 November 2023, provisionally attached the three properties valued at Rs 661.69 crore, besides Young Indian’s Rs 90.21 crore in the form of investment of equity shares of AJL. On Thursday, the Adjudicating Authority confirmed the attachment, following which the ED served notices on Friday to Registrars of AJL properties in Delhi, Mumbai, and Lucknow.

The ED statement said a notice has also been served to M/s Jindal South West Projects Ltd, which is occupying three floors at Herald House in Mumbai's Bandra East, to transfer the lease amount every month to the ED Director.

The ED had initiated a probe following a court direction on a complaint filed by Subramanian Swamy in 2014 and held prima facie that seven accused committed offences under the Indian Penal Code, including criminal breach of trust, cheating, and criminal conspiracy, it said in a statement. The petition was against Sonia, Rahul, the late Motilal Vohra, and the late Oscar Fernandes, among others.

The court had held that the accused hatched a conspiracy to acquire properties of AJL through a special purpose vehicle, YI. AJL, which was given land on concessional rates in various cities and closed its publishing operations in 2008 and then started using the properties for commercial purposes, was to repay Rs 90.21 crore to Congress, which treated it as a non-recoverable loan and sold it for Rs 50 lakh to YI, the ED claimed.

The agency said it conducted searches and seizures at multiple locations, uncovering documents linked to the alleged money laundering activities.