Enforcement Directorate Estimates ₹988 Crore as Proceeds of Crime in National Herald Case

The Enforcement Directorate (ED) has calculated that the total “proceeds of crime” (PoC) in the Young Indian-Associated Journals Ltd (AJL) case, involving Sonia Gandhi and Rahul Gandhi, amounts to ₹988 crore. This figure includes real estate and other assets valued at ₹755 crore, shares worth ₹90 crore, and rent earnings of ₹142 crore since the financial year 2010-11.

AJL, the parent company of the National Herald, reportedly acquired most of these assets as “freehold” or on a “long-term lease” provided by central and state governments for its newspaper business. The Herald House in Delhi, for example, was given to the company on perpetual lease for ₹4.89 lakh.

The rent of ₹142 crore is attributed to AJL since it was taken over by Young Indian (YI) in the financial year 2010-11. The ED claims that YI, in which Sonia and Rahul Gandhi own 38% each, acquired complete control over AJL’s properties in various cities.

The ED alleges that AJL showed advance rent of ₹58.79 crore in its balance sheets, but during investigations, “advance rent amounting to ₹36.91 crore was not found to be genuine.” The agency points out the absence of rent agreements and notes that some payments were made by “shell entities” on the directions of senior Congress leaders.

The rent received, according to the ED, has been primarily utilized for developing commercial spaces, particularly in Mumbai, to fully exploit the business potential. The agency claims to have found instances where AJL properties were transferred, sold, mortgaged, or third-party rights were created.

One example cited by the ED involves a property in Bhopal, where AJL sold portions of the building before the lease agreement’s expiry. Another case involves AJL mortgaging a plot in Panchkula to avail a loan for constructing a building in Bandra, Mumbai. The ED alleges the creation of third-party rights through mortgage facilities.

The Congress has consistently denied these allegations, characterizing the case as a “witch-hunt.” Dr. Abhishek Manu Singhvi, a lawyer, Member of Parliament, and Congress Working Committee member, called it a “strange case” with no transfer, no money flow, and no money laundering. BJP leader Subramanian Swamy initiated the case in 2012, alleging the misuse of party funds in the purchase of AJL.

As investigations continue, the ED’s attachment order and the Congress party’s defense present conflicting narratives in the National Herald case.