New Delhi, May 21, 2025 – In a significant development in the National Herald money laundering case, the Enforcement Directorate (ED) has asserted that donors of the Indian National Congress were the real victims of financial misappropriation linked to the now-defunct newspaper and its associated companies.
The ED’s argument comes during an ongoing investigation involving top Congress leaders, including Sonia Gandhi and Rahul Gandhi, in connection with alleged financial irregularities involving Associated Journals Limited (AJL) and Young Indian Pvt. Ltd. The probe, which has intensified in recent months, centers on the alleged misuse of funds and illegal acquisition of AJL assets through Young Indian.
ED Claims Congress Donors Misled
According to ED officials, funds collected through donations to the Congress party were purportedly misused for personal and corporate gains rather than for political or public service purposes, as intended. The agency claims that these contributions were funneled into a complex web of transactions aimed at taking over valuable real estate assets owned by AJL across India.
"The funds meant for the public and party welfare were redirected to benefit private entities. This constitutes a clear betrayal of trust and financial fraud against the party's own donors," stated an ED source familiar with the case.
Background of the National Herald Case
The National Herald newspaper was established by India’s first Prime Minister, Jawaharlal Nehru, in 1938 as a voice of the Indian freedom movement. It was published by AJL, which stopped operations in 2008. In 2010, Young Indian, a company in which Sonia Gandhi and Rahul Gandhi hold majority stakes, allegedly took over AJL’s debt and acquired control of its assets, raising questions about the legitimacy of the transaction.
The ED has been probing whether this move amounted to money laundering under the Prevention of Money Laundering Act (PMLA), arguing that the transfer of assets worth over ₹2,000 crore was carried out without proper financial exchange and through dishonest means.
Political Ramifications and Congress Response
The case has sparked widespread political debate, with the Congress party calling the investigation a "vendetta campaign" orchestrated by the ruling Bharatiya Janata Party (BJP) to malign its leadership.
Congress spokespersons have repeatedly denied any wrongdoing, stating that the transaction was entirely legal and aimed at reviving the National Herald publication. They have also accused the ED of acting on politically motivated instructions to harass opposition leaders.
Legal Proceedings Continue
Multiple hearings have taken place in Delhi courts, with the ED presenting evidence and financial records to support its claims. The courts are expected to take a decision on framing charges after considering the ED’s arguments and the defense's counterpoints.
The outcome of this high-profile case could have lasting implications not just for the Congress party, but also for the broader political and legal landscape of India.
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