NATIONAL: ED Moves to Seize ₹661 Cr Assets in National Herald Case
Action Targets Properties in Delhi, Mumbai, and Lucknow
The Enforcement Directorate (ED) on Saturday initiated formal possession proceedings for immovable assets worth ₹661 crore, linked to the National Herald case. These properties, located in Delhi, Mumbai, and Lucknow, were previously attached under a money laundering probe involving Associated Journals Limited (AJL) and Young Indian.
Properties Attached in High-Profile PMLA Case
The ED’s action comes under the Prevention of Money Laundering Act (PMLA). AJL, which publishes the National Herald, and Young Indian, which owns it, are accused of acquiring properties through a financial arrangement deemed illegal by the agency. The assets were provisionally attached in November 2023, and the order was confirmed by the adjudicating authority in April 2024.
Sonia and Rahul Gandhi Under ED Lens
Congress leaders Sonia Gandhi and Rahul Gandhi, majority shareholders of Young Indian, were previously questioned by the ED in 2022. The case revolves around an alleged acquisition of AJL’s assets — worth over ₹2,000 crore — for just ₹50 lakh. The ED terms this transaction a “criminal conspiracy” to launder money.
ED’s Charges: Bogus Donations and Undervalued Takeover
According to the ED, its investigation uncovered bogus donations of ₹18 crore, bogus advance rent of ₹38 crore, and false advertisements worth ₹29 crore, allegedly used to generate proceeds of crime. The agency claims the transfer of AJL assets to Young Indian was part of a broader plan to illegally take over high-value properties.
Possession Process Begins Under PMLA Rules
The ED has now moved to take physical possession of these properties, in compliance with Section 8 of PMLA and its 2013 rules. Notices have been affixed at:
- 5(A), Bahadur Shah Zafar Marg, New Delhi
- Herald House, Bandra (East), Mumbai
- No.1, Bisheshwar Nath Road, Lucknow
The notices seek evacuation of the premises. A separate notice has also been issued to Jindal South West Projects Ltd, which currently occupies three floors at Herald House, directing it to redirect monthly rent payments to the Directorate of Enforcement.
Legal Challenge and Political Reaction
Reacting to the move, Congress MP Abhishek Manu Singhvi said:
“This is a continuation of a political vendetta. There is no actual movement of money, and mere share transfers are being misrepresented as money laundering. Legal remedies will be pursued in court.”
Case Triggered by Swamy Complaint in 2021
The ED began its probe in 2021, following a private complaint by Subramanian Swamy. The complaint accused Sonia and Rahul Gandhi, among others, of criminal conspiracy and money laundering in relation to the AJL property transfer.
Legal Proceedings Endorsed by Higher Courts
Despite legal challenges, the probe has continued with the Delhi High Court and Supreme Court allowing the investigation to proceed. The ED has since conducted multiple searches and seizures, claiming to have gathered key evidence.