National Herald Case: Gandhis key beneficiaries of `5K-cr AJL assets says ED

New Delhi: The Enforcement Directorate (ED) has alleged that Sonia Gandhi and her son Rahul orchestrated a "criminal conspiracy" to "usurp" properties of National Herald's publisher, Associated Journals Ltd (AJL), worth Rs 2,000 crore, by transferring 99% of the shares for just Rs 50 lakh. The assets were acquired by a private firm, Young Indian, which is controlled by Sonia Gandhi and Rahul. This forms the crux of the chargesheet filed by the ED in the National Herald money laundering case, which has also named Congress leaders Sam Pitroda and Suman Dubey as accused.

The current market value of the assets is now Rs 5,000 crore, and the ED has identified the "proceeds of crime" at Rs 988 crore, sources said. The AJL was founded by India's first prime minister, Jawaharlal Nehru.

In the ED chargesheet, Sonia has been named accused no 1, and Rahul as accused no 2. A special court will decide on taking cognisance of the chargesheet on April 25.

The ED has sought punishment for Sonia, Rahul and other accused under Section 4 of the PMLA, where jail term can extend up to seven years.

The case is based on an order of a trial court that allowed the Income Tax department to investigate the affairs of the National Herald and conduct a tax assessment of the Gandhis.

The trial court order came on a petition filed by former minister Subramanian Swamy in 2013.

The ED chargesheet states that the "principal officers" of AJL, Young Indian, and "key" Congress office bearers entered into a "criminal conspiracy" to acquire assets worth Rs 2,000 crore of AJL, a public company.

This they did by transferring 99% shares in favour of Young Indian, a private company, for Rs 50 lakh, the ED has alleged. While Sonia and Rahul own a 76% stake in Young Indian, 24% belonged to the late Motilal Vohra and the late Oscar Fernandes.

As per the chargesheet, the leaders "converted" the outstanding loan of Rs 90.21 crore given by Congress to AJL

into Rs 9.02 crore equity shares. All these shares were then transferred to Young Indian for a

"paltry" Rs 50 lakh, as per the ED.