National Herald Case: PMLA Authority Upholds ED's Attachment Of Property Worth Rs 750 Crore

national herald case: pmla authority upholds ed’s attachment of property worth rs 750 crore

The PMLA Adjudicating Authority in the money laundering case related to the Congress-owned National Herald has upheld the Enforcement Directorate’s (ED) attachment of its properties worth Rs 750 crore, sources said Wednesday.

The sources added that the order was pronounced Wednesday upholding the attachment.

The Directorate of Enforcement (ED), in November 2023, had provisionally attached properties worth Rs 751.9 crore in a money-laundering case investigated under the Prevention of Money Laundering Act (PMLA), 2002.

Its investigation had revealed that Associated Journals Ltd (AJL) – which publishes the National Herald – was in possession of proceeds of crime in the form of immovable properties spread across many cities of India such as Delhi, Mumbai and Lucknow to the tune of Rs. 661.69 Crore and Young Indian (YI) – which is owned by Congress leaders Sonia Gandhi and Rahul Gandhi and owns National Herald – is in possession of proceeds of crime to the tune of Rs. 90.21 Crore in the form of investment in equity shares of AJL.

ED initiated money-laundering investigation on the basis of process issued by Hon’ble Court of Metropolitan Magistrate of Delhi after taking cognizance of a private complaint order dated 26th June 2014.

The Hon’ble Court held that seven accused persons, including Young Indian, prima facie committed offences of criminal breach of trust under Sections 406 of IPC, cheating and dishonestly inducing delivery of property under Sections 420 of IPC, dishonest misappropriation of property under Sections 403 and criminal conspiracy under Sections 120B of IPC.

The Hon’ble Court held that the accused persons hatched a criminal conspiracy to acquire properties worth hundreds of crores for AJL through a special purpose vehicle, Young Indian.

AJL was given land on concessional rates in various cities of India for the purpose of publishing newspapers. AJL closed its publishing operations in 2008 and started using the properties for commercial purposes.

AJL had to repay a loan of Rs. 90.21 Crore to All India Congress Committee (AICC), however, AICC treated the said loan of Rs.90.21 Crore as non-recoverable from AJL and sold it for Rs.50 lakh to a newly incorporated company Young Indian without any source of income to pay even Rs.50 lakh.

By their action, the shareholders of AJL as well as donors of Congress Party were cheated by the office bearers of AJL and Congress Party.

ED investigation revealed that after purchasing the loan of Rs.90.21 Crore from AICC, YI demanded either repayment of loan or allotment of equity shares of AJL to it.

AJL held an Extraordinary General Meeting (EGM) and passed a resolution to increase share capital and issue fresh shares worth Rs.90.21 Crore to YI. With this fresh allotment of shares, shareholding of more than 1000 shareholders was reduced to a mere 1% and AJL became subsidiary company of YI. YI also took control over properties of AJL.