In a major development that has reignited political tensions, the Economic Offences Wing (EOW) of the Delhi Police has filed a fresh First Information Report (FIR) against Congress leaders Sonia Gandhi and Rahul Gandhi, along with six others, over alleged financial and corporate irregularities in the takeover of Associated Journals Ltd (AJL), the company that once published the National Herald newspaper.
According to officials quoted in media reports, the FIR, dated October 3, was registered after the Enforcement Directorate’s Headquarters Investigative Unit (HIU) submitted a comprehensive complaint backed by findings from its extensive investigation spanning 2008 to 2024. The ED, which has been probing the National Herald case under the Prevention of Money Laundering Act (PMLA), invoked Section 66(2) of the Act to formally request the Delhi Police to register and investigate the scheduled offence.
ED Findings Prompt Police Action
The ED shared a detailed account of alleged financial mismanagement, shell company linkages, and suspicious fund flows that, it claims, facilitated the indirect acquisition of AJL through Young Indian, a company in which Rahul Gandhi and Sonia Gandhi jointly hold 76 percent of shares.
Investigators allege that Young Indian gained control over AJL, an entity with real estate assets reportedly valued at nearly Rs 2,000 crore, through questionable financial transactions. A crucial part of the ED’s findings points to Dotex Merchandise Pvt Ltd, described in the complaint as a Kolkata-based shell company, which allegedly routed Rs 1 crore to Young Indian. From this amount, the Gandhis are alleged to have paid Rs 50 lakh to the Congress, enabling Young Indian to assert control over the publishing company.
The National Herald investigation traces its roots to a private complaint filed by former BJP MP Subramanian Swamy. In June 2014, a metropolitan magistrate at Patiala House Court took cognisance of the complaint, paving the way for the ED to initiate a money laundering investigation.
Over the years, the case has expanded significantly. On April 9, the ED filed a prosecution complaint (equivalent to a chargesheet) under the PMLA before the Special Court for MPs and MLAs at Rouse Avenue. However, the court has not yet taken cognisance of this chargesheet.
The new FIR names prominent Congress figures and associated entities:
Sonia Gandhi
Rahul Gandhi
Sam Pitroda, Chairman of the Indian Overseas Congress
Companies:
Associated Journals Ltd (AJL)
Young Indian
Dotex Merchandise Pvt Ltd
The complaint asserts that the accused individuals worked “in collusion” to engineer the takeover of AJL by extending financial benefits, allegedly with the intention of siphoning assets.
Congress Denies all Allegations
The Congress party has categorically denied the latest developments. When contacted by The Times of India regarding the new FIR, party officials said they were unaware of any such action. Reiterating its long-standing position, the party called the case a “political witch-hunt,” accusing the central government of misusing investigative agencies to target political opponents.
With the Delhi Police now formally registering a predicate offence based on ED’s findings, the scope of the investigation is expected to broaden further. This enables the ED to continue and potentially expand its money laundering probe, as the FIR now provides the necessary legal foundation under PMLA procedures.
The police are likely to examine the fund flow patterns highlighted by the ED, particularly the alleged involvement of Dotex Merchandise and the transactions leading to the transfer of AJL’s ownership rights.
Under Section 66(2) of PMLA, the Enforcement Directorate may share information and request other law enforcement agencies to register and investigate offences related to scheduled crimes. Once such an FIR is lodged, it becomes the predicate offence allowing the ED to deepen its probe into suspected money laundering activities.
The registration of the new FIR comes at a politically sensitive time, adding pressure on the Congress leadership. The National Herald case has frequently resurfaced in political discourse, with the party maintaining that the allegations are baseless and aimed at tarnishing its image.
The Delhi Police’s next steps in the investigation, summons, statements, forensic audits of financial documents will determine how the case proceeds in the coming months. For now, the fresh FIR marks a renewed phase of scrutiny in one of the most politically charged financial investigations in recent years.
