ED begins possession of assets linked to Sonia, Rahul Gandhi

The Enforcement Directorate (ED) has begun actions to seize assets connected to Congress leaders Sonia Gandhi and Rahul Gandhi in the National Herald money laundering investigation.

On April 11, the central investigative agency sent notifications to property registrars in Delhi, Mumbai, and Lucknow, where the assets of Associated Journals Limited (AJL), acquired by Young Indian Limited (YIL)—a company effectively owned by Sonia and Rahul Gandhi—are situated.

This case is connected to allegations of financial misconduct and fund misappropriation related to YIL’s acquisition of AJL, which formerly published the National Herald newspaper. BJP leader Subramanian Swamy, who submitted the original complaint, claims that Young Indian seized AJL’s assets in a “malicious manner” to acquire control of properties valued at over Rs 2,000 crore.

The ED stated that the attachment is a result of investigations that uncovered the purported laundering of criminal proceeds totaling Rs 988 crore, associated with AJL’s assets. The actions were started after an Adjudicating Authority recently upheld the previous provisional attachment of the assets.

In November 2023, the ED provisionally seized immovable assets in Delhi, Mumbai, and Lucknow — estimated at Rs 661 crore — together with AJL shares valued at Rs 90.2 crore. This attachment was validated on April 10. A distinct notification has been sent to Jindal South West Projects, the present occupant of three levels in Herald House, Mumbai. The firm has been instructed to pay all upcoming rent fees directly to the ED.

The agency claims that the assets were obtained unlawfully and laundered through a complicated political-financial connection linked to the Congress leadership.

The investigation by the ED, which officially started in 2021, originates from a private criminal complaint lodged by Subramanian Swamy in 2014 with a court in Delhi. The allegation charged Sonia Gandhi, Rahul Gandhi, and additional senior Congress officials with facilitating a deceptive acquisition of AJL’s assets — valued at over Rs 2,000 crore — via Young Indian for a mere Rs 50 lakh.

Regardless of legal obstacles, both the Delhi High Court and the Supreme Court permitted the investigation to continue. Throughout the investigation, the ED executed searches and seizures at various sites and asserted that they had discovered documents indicating further levels of financial misconduct.

The agency states that the AJL-Young Indian network was reportedly utilized to amass illegal funds totaling Rs 18 crore via fake donations, advance rent of Rs 38 crore, and Rs 29 from advertisements. Authorities stated that the recent action is intended to stop the ongoing enjoyment, utilization, and additional creation of contaminated assets.