In a significant development, the Enforcement Directorate has confiscated immovable properties valued at Rs 752 crores in the long-pending National Herald case. These prime real estate assets, situated in different Indian cities, are alleged to have been misappropriated and converted for personal use by entities associated with Sonia and Rahul Gandhi. Notably, trusted figures, including Mallikarjun Kharge, are implicated in the controlled properties, raising questions about Kharge’s elevation to the post of INC President and his alleged involvement in the criminal enterprise.
The attached properties, considered as proceeds of crime, should have been seized earlier, despite rejections of petitions by the accused in various courts, including the Supreme Court, attempting to quash the case. The Enforcement Directorate is urged to expedite the trial under the Prevention of Money Laundering Act (PMLA) for money laundering, aiming for convictions given the perceived strength of the case.
BJP slammed Gandhi family
Meanwhile, the BJP has criticised the Congress for dismissing the Enforcement Directorate’s recent actions in the National Herald case as “petty vendetta.” The BJP contends that the Gandhi family attempted to “manipulate the legacy of the freedom movement.” On Tuesday, the ED issued an order to seize assets worth Rs 751.9 crore belonging to Associated Journals Limited and Young Indian as part of a money-laundering investigation involving firms associated with the Congress party.
In response to the developments, Ravi Shankar Prasad, a BJP leader, remarked on November 21, “The Congress consistently asserts its role in the freedom movement. Initially, they appropriated the freedom movement for their family. Building upon that, the [Gandhi] family established its own ‘Baadshahat’ [kingship]. The National Herald saga reveals that this family not only commands the narrative of the freedom movement and the party but also exerts control over the legacy of properties, transforming it into personal possessions… Newspapers, shares, and assets associated with the struggle for independence are considered their own. This marks a new low in India’s democracy…”
#WATCH | Delhi: On ED attaching the properties of AJL and Young Indian in a money laundering case, BJP leader Ravi Shankar Prasad says, “…Congress party always say that they worked in the fight of the freedom movement… First, they appropriated the freedom movement to their… pic.twitter.com/hJKIciWUZC
— ANI (@ANI) November 22, 2023
Contrarily, Congress leader Nana Patole stated on November 21, that the ED’s actions were driven by the BJP’s anxiety. “The BJP is aware that it is on the verge of losing in the five states’ elections. The National Herald and its attached properties are comprised of funds from Congress party workers nationwide. It is not the personal property of the Gandhi family. It has been established that Rahul Gandhi and Sonia Gandhi are not implicated in this. However, the BJP leaders in Delhi, currently in power, are attempting to portray it as the Gandhi family’s property. But this will yield no results.”
#WATCH | Nagpur, Maharashtra: On ED attaching the properties of AJL and Young Indian in a money laundering case, Congress leader Nana Patole says, “…They (the BJP) know that they are going to lose elections in the five states… The National Herald and the properties attached… pic.twitter.com/t8vktBVMKE
— ANI (@ANI) November 22, 2023
Dismissing the Congress’ assertion that the ED’s actions were a consequence of BJP frustration due to potential losses in the ongoing assembly polls, Prasad argued that it is, in fact, the Congress that will face a resounding defeat. He emphasised that the National Herald case investigation originated from a private complaint before the Modi government assumed power in 2014.
Both Sonia Gandhi and Rahul are currently on bail, facing charges of cheating and forgery, he highlighted, referencing the trial court’s significant remarks on the allegations against them to emphasise his argument.
He pointed out that Prime Minister Narendra Modi, too, faced questioning by investigative agencies in cases related to the 2002 Gujarat riots when he was the chief minister, but there were no protests by BJP workers. The BJP leader emphasised that Modi emerged unscathed from those situations.
“You cannot expect to keep engaging in corruption and wrongdoing without facing consequences. The family must be held accountable for their sins, corruption, and abuse of power,” he asserted.
What is the Kharge connection?
As far as the role of Kharge is concerned there are no actual proofs as of now but the Rajya Sabha MP and senior advocate shared a post on social media indicating the same. From his official X account, he wrote, “At long last the #EnforcementDirectorate has finally acted in the pending #NationalHerald case and attached Rs immoveable properties worth Rs 752 crores of prime real estate located in several cities in India misappropriated and converted to their own use by entities effectively owned by #Sonia and #RahulGandhi and controlled by them and their trusted minions, among them #MallikarjunKharge ( was he elevated to the post of President of the #INC for his collaboration with the Gandhis in their criminal enterprise?) ”
At long last the #EnforcementDirectorate has finally acted in the pending #NationalHerald case and attached Rs immoveable properties worth Rs 752 crores of prime real estate located in several cities in India misappropriated and converted to their own use by entities effectively…
— Mahesh Jethmalani (@JethmalaniM) November 21, 2023
“These properties are without doubt the proceeds of crime and in truth ought to have been attached immediately after the entire hierarchy of courts – right upto the #SupremeCourt – had rejected petitions by the accused persons praying that the case against them be quashed. ED should now fast track the trial against the accused persons under the PMLA for money laundering and secure their convictions , the case being a cast iron one,” he added further.
Details from the ED’s raid
In a press release dated November 21, the ED has revealed that Associated Journals Ltd. (AJL) possesses proceeds of crime amounting to Rs. 661.69 Crore in the form of immovable properties located in various cities across India, including Delhi, Mumbai, and Lucknow. Furthermore, Young Indian (YI) holds proceeds of crime totaling Rs. 90.21 Crore, primarily in the form of equity shares invested in AJL.
The Enforcement Directorate (ED) launched a money-laundering investigation following a court process initiated by the Delhi Metropolitan Magistrate’s Court, which took cognisance of a private complaint through an order dated June 26, 2014. According to the release, “The Court determined that seven accused persons, including Young India, prima facie committed offences of criminal breach of trust under Section 406 of the IPC, cheating and dishonestly inducing delivery of property under section 420 of the IPC, dishonest misappropriation of property under section 403, and criminal conspiracy under section 120B of the IPC.”
The Court found that the accused individuals devised a criminal conspiracy to acquire properties valued at hundreds of crores owned by Associated Journals Ltd. (AJL) through a special purpose vehicle, Young Indian. AJL had been granted land at concessional rates in various Indian cities for the purpose of newspaper publishing. However, in 2008, AJL ceased its publishing operations and began utilising the properties for commercial activities.
The release further stated, “AJL was obligated to repay a loan of Rs. 90.21 Crore to the All India Congress Committee (AICC). Nevertheless, AICC deemed the loan non-recoverable from AJL and sold it for Rs. 50 lakhs to a newly incorporated company, Young Indian, which had no visible source of income to even cover the Rs. 50 lakh. This action deceived the shareholders of AJL as well as the donors of the Congress Party by the office bearers of AJL and the Congress Party.”
The investigation conducted by the Enforcement Directorate (ED) has brought to light that following the acquisition of a Rs 90.21 Crore loan from AICC, Young India insisted on either the repayment of the loan or the allocation of equity shares in AJL to itself. Subsequently, AJL conducted an Extraordinary General Meeting (EGM) and passed a resolution to augment share capital, authorising the issuance of new shares valued at Rs. 90.21 Crore to Young India.
“Through this recent share allocation, the ownership of more than 1000 shareholders was significantly reduced to a mere 1 percent, leading to AJL becoming a subsidiary company of Young India, which also gained control over AJL’s properties,” as per the released statement.
