The agency has sought punishment under Section 4 of the PMLA, which provides for a jail term of up to seven years upon conviction.
National Herald Case: ED Names Sonia and Rahul Gandhi as Prime Accused, Latest News:
The high-profile National Herald case has resurfaced, with the Enforcement Directorate (ED) filing a chargesheet against Congress leaders Sonia Gandhi, Rahul Gandhi, and others in the alleged money laundering case.
The ED filed the chargesheet on April 9, 2025, naming Sonia Gandhi and Rahul Gandhi as accused in the National Herald money laundering case. The chargesheet was submitted to a special court under various sections of the Prevention of Money Laundering Act (PMLA) in Delhi, before Special Judge Vishal Gogne. Special Judge Vishal Gogne took up the chargesheet for cognizance and listed the matter for further hearing on April 25.
The investigating agency has named the two Gandhis as Accused Nos. 1 and 2 in its prosecution complaint.
Along with former Congress president Sonia Gandhi and Leader of Opposition in the Lok Sabha Rahul Gandhi, the ED has also named Congress associates Suman Dubey and Sam Pitroda, the companies Young Indian and Dotex Merchandise Private Limited, and Sunil Bhandari of Dotex Merchandise as accused.
The ED has invoked Sections 44 and 45 of the Prevention of Money Laundering Act (PMLA) to charge the accused with the offence of money laundering under Section 3 of the Act. It has also applied Section 70, which pertains to offences committed by companies, to establish the vicarious liability of company officials and executives.
The agency has sought punishment under Section 4 of the PMLA, which provides for a jail term of up to seven years upon conviction.
The Enforcement Directorate (ED), in its chargesheet reported by PTI, has accused Sonia Gandhi and Rahul Gandhi—both senior leaders of the All India Congress Committee (AICC)—of being involved in a criminal conspiracy to take control of the assets of Associated Journals Limited (AJL), a public company that once published the National Herald newspaper.
According to the ED, the AICC had earlier extended a loan of ₹90.21 crore to AJL. This outstanding loan was later converted into equity shares worth ₹9.02 crore. These shares were then transferred to a private company named Young Indian for a nominal amount of ₹50 lakh.
Young Indian was incorporated as a not-for-profit company under Section 25 of the Companies Act. Sonia Gandhi and Rahul Gandhi each held a 38 per cent stake in the company, while the remaining 24 per cent was held jointly by the late Motilal Vora and Oscar Fernandes, both described by the ED as close associates of the Gandhis.
The ED has alleged that 99 per cent of AJL’s shares were transferred to Young Indian through this process, giving Sonia Gandhi and Rahul Gandhi effective control—or “beneficial ownership”—over AJL’s real estate assets, which are valued at around ₹2,000 crore.
Although the Congress party has maintained that Young Indian was formed for charitable purposes, the ED claims that the company never carried out any charitable activities. Sources cited by PTI stated that no records or expenses related to charitable work were found during the agency’s investigation.
In addition, the ED has cited a 2017 Income Tax assessment order to support its claim that Young Indian evaded over ₹414 crore in taxes by illegally acquiring AJL’s assets.
To support these allegations, the ED has invoked Sections 3, 44, and 45 of the Prevention of Money Laundering Act (PMLA), along with Section 70, which deals with offences committed by companies and makes their key officials liable.
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