The Enforcement Directorate (ED) has initiated the process of seizing properties attached from Associated Journals Limited (AJL) in the National Herald money laundering case. On April 11, 2025, the ED issued notices to property registrars in Delhi, Mumbai, and Lucknow in this regard.
Money Laundering Case: In a significant move in the National Herald money laundering case, the Enforcement Directorate (ED) has begun the process of seizing attached assets belonging to Associated Journals Limited (AJL). On April 11, the investigating agency sent notices to property registrars in Delhi, Mumbai, and Lucknow. Furthermore, Jindal South West Projects Limited, the tenant of Herald House in Mumbai, has been instructed to remit future monthly rent payments to the ED.
This action follows the approval of a special PMLA court, which granted permission for the ED's property seizure process on April 10, 2024. During its investigation, the agency uncovered approximately ₹988 crore in alleged illicit earnings. Prior to this, on November 20, 2023, the ED had attached AJL assets and shares worth approximately ₹751 crore.
What is the Entire Case About?
The controversy began in 2012 following a complaint filed by BJP leader Dr. Subramanian Swamy, alleging that Sonia Gandhi, Rahul Gandhi, and their associates acquired AJL's assets worth ₹2,000 crore for a mere ₹50 lakh. Dr. Swamy alleged that Young Indian Private Limited, in which Rahul and Sonia Gandhi jointly hold a 76% stake, transferred a ₹90 crore loan received from the Congress party to AJL and then transferred all of AJL's shares to Young Indian for only ₹50 lakh.
ED's Investigation Findings:
• The ED's investigation revealed several serious findings:
• ₹18 crore received as fraudulent donations.
• ₹38 crore obtained as fraudulent advance rent.
• ₹29 crore collected through fraudulent advertisements.
In total, according to the investigating agency, approximately ₹85 crore in illicit earnings were attempted to be legitimized through these methods. Furthermore, the agency stated that these assets were used to "continue and expand the proceeds of crime."
Notices Under PMLA
The ED initiated this action under Section 8 and Rule 5(1) of the Prevention of Money Laundering Act (PMLA). Notices have been affixed to the concerned premises, stating that they must either be vacated or the rent received from them must be transferred to the ED.
Historical Background of AJL
AJL was founded in 1937 and its shareholders included 5,000 freedom fighters. The company published newspapers such as ‘National Herald’, ‘Navjivan’, and ‘Qaumi Awaz’. However, due to losses, its operations ceased. The Congress party provided a loan of ₹90 crore to revive it, which was later transferred to Young Indian. This transaction is the source of the current controversy.
The ED is now preparing to take actual possession of the attached AJL properties. The agency states that this step is being taken to "terminate the consumption and commercial use of assets linked to the proceeds of crime."
