The Enforcement Directorate (ED) alleged before a Delhi court on Wednesday that Congress leaders Sonia Gandhi and Rahul Gandhi orchestrated a conspiracy to take control of assets worth Rs 2,000 crore belonging to Associated Journals Limited (AJL), the publisher of the National Herald newspaper.
Represented by Additional Solicitor General (ASG) S.V. Raju, the ED asserted that Young Indian was specifically created as part of this plan. Sonia and Rahul Gandhi hold a combined 76% stake in Young Indian. The agency claimed this entity was used to acquire AJL’s assets in exchange for settling a Rs 90 crore loan provided by the Congress party to AJL.
“AJL was not profitable but possessed substantial assets valued at Rs 2,000 crore. They faced difficulties managing daily operations, leading them to borrow Rs 90 crore from the Congress,” ASG Raju stated in court. He further alleged, “The Congress intended to usurp this company. The conspiracy involved forming Young India to divert the Rs 2,000 crore assets in return for clearing the Rs 90 crore debt. Sonia Gandhi and Rahul Gandhi aimed to take over AJL.”
These submissions were made as a special court commenced daily hearings in the National Herald money laundering case. Sonia Gandhi, Rahul Gandhi, Congress Overseas Chief Sam Pitroda, Suman Dubey, and others are named as accused in the ED’s chargesheet.
The ED reiterated its previous claim that the Gandhis benefited from Rs 142 crore identified as proceeds of crime. ASG Raju also indicated the Congress party (AICC) could face charges later, stating, “The ED retains the right to make AICC an accused in the future if evidence emerges. Its current omission doesn’t preclude this action.”
The federal agency further informed the court that senior Congress leaders directed “fake transactions” benefiting AJL. This included allegedly fraudulent advance rent payments made by individuals over several years, along with advertising funds funneled to AJL under similar instructions from party leaders.
The ED contends these transactions constitute proceeds of crime, with Sonia and Rahul Gandhi being the ultimate beneficiaries. In response, the court questioned whether donors and Congress leaders involved in making these payments should also be considered respondents, as they potentially participated in generating the illegal funds. The ED confirmed it is investigating potential liability for these individuals.