In a significant development in the National Herald money laundering case, the Enforcement Directorate (ED) told a Delhi court on Wednesday that Congress leaders Sonia Gandhi and Rahul Gandhi directly profited from proceeds of crime totaling Rs 142 crore.
The ED has claimed that a case under the Prevention of Money Laundering Act (PMLA) stands established. The assertion was made before Special Judge Vishal Gogne at Rouse Avenue Court as the preliminary hearings on whether to take cognizance of the prosecution complaint by the ED commenced.
The ED complaint mentions Sonia and Rahul Gandhi among others, but also draws in Sam Pitroda, Suman Dubey, Young Indian Pvt Ltd, and two group companies.
Young Indian was formed as a shell company with the exclusive intention of acquiring control of Associated Journals Ltd (AJL)—the publisher of the defunct National Herald—and its real estate assets, valued at more than Rs 2,000 crore according to the ED.
The agency had charged that public contributions meant for the Congress party were channelled through this complex to create private riches. Additional Solicitor General (ASG) SV Raju described Young Indian as "a sham entity" in the course of proceedings, pointing out that it did not have any genuine commercial activities and was essentially utilised for money laundering.
The case was based on a 2014 private criminal complaint by BJP leader Dr. Subramanian Swamy, and the ED actually initiated its investigation in 2021.
The ED in November 2023 froze several properties, claiming that the accused had continued to enjoy the proceeds of crime—ranging from rental earnings to the tune of Rs 142 crore—until then.
Senior counsel Abhishek Manu Singhvi, who appeared for the defence, asked for more time to reply, arguing about the sheer size of the case file, which exceeds 5,000 pages.
The court now has to decide whether the evidence given is enough to call in the accused and go to trial.
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