New Delhi, July 3 The Enforcement Directorate (ED) on Thursday concluded its oral arguments before the Rouse Avenue Court as to why cognisance should be taken on a prosecution complaint filed against Congress Parliamentary Party Chairperson Sonia Gandhi, Leader of Opposition (LoP) in the Lok Sabha Rahul Gandhi, and other accused in the alleged National Herald money laundering case.
After Additional Solicitor General (ASG) S.V. Raju, representing the ED, finished his oral submissions, Special Judge (PC Act) Vishal Gogne, handling the high-profile case on a day-to-day basis, ordered the filing of submissions by the proposed accused, including the Gandhis, Congress Overseas Chief Sam Pitroda, and Suman Dubey, on Friday (July 4).
ASG Raju argued that Young Indian Ltd -- in which Sonia and Rahul Gandhi are majority stakeholders – was used for usurping around Rs 2,000 crore assets of the now-defunct newspaper by paying a nominal price of Rs 50 lakh.
Further, the ED claimed that the shareholding in Young Indian is just in name and all the other accused are puppets of the Gandhi family.
On Wednesday, the ED argued that a conspiracy was hatched to form Young Indian to acquire control over the National Herald’s vast assets aimed at benefiting the top Congress leadership personally.
ASG Raju said that several senior Congress leaders were involved in "fake transactions” made to Associated Journals Limited (AJL), the original publisher of the National Herald.
According to the Central agency, individuals were making fraudulent advance rent payments over several years at the direction of senior Congress functionaries with fabricated rent receipts.
In an earlier hearing held on May 2, the Rouse Avenue Courts asked the Gandhis and other accused to show cause as to why cognisance should not be taken on ED’s charge sheet filed against them under the Prevention of Money Laundering Act (PMLA).
The prosecution complaint claimed that the Congress leadership had misappropriated property belonging to the AJL by converting public trusts into personal assets.
The National Herald, a newspaper established by Pandit Jawaharlal Nehru and other prominent leaders in 1938, was originally aimed at representing the liberal voice within the Congress.
Published by AJL, the National Herald was a critical tool for the Congress during the freedom struggle and post-Independence years.
Alongside the English publication, the AJL also published newspapers in Hindi and Urdu.
However, the paper ceased operations in 2008 due to mounting debts exceeding Rs 90 crore.
The controversy over its assets came into focus in 2012 when BJP leader Subramanian Swamy filed a complaint in a trial court, alleging that Congress leaders had engaged in cheating and breach of trust in the process of acquiring AJL.
In the course of the investigation, the ED found that Young Indian, beneficially owned by the Gandhis, effectively took control of AJL's properties while undervaluing their market worth.
In November 2023, the ED attached immovable properties valued at Rs 661 crore and AJL shares worth Rs 90.2 crore, terming them suspected proceeds of crime.
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