Image Credit: Premier.gov.ru
ED Alleges ₹142 Cr Received by Gandhis in Herald Case
In a major development in the National Herald money laundering case, the Enforcement Directorate (ED) has told a Delhi court that Congress leaders Sonia Gandhi and Rahul Gandhi were direct beneficiaries of ₹142 crore, which the agency has classified as “proceeds of crime.” The statement was made during a court hearing on May 21, 2025, as the ED presented its findings in the ongoing investigation under the Prevention of Money Laundering Act (PMLA).
National Herald Case: A Political and Legal Storm
The National Herald case revolves around the acquisition of Associated Journals Ltd. (AJL), which once published the now-defunct National Herald newspaper, by Young Indian Pvt Ltd (YI), a company controlled by the Gandhis. The ED claims that the assets of AJL, estimated to be worth hundreds of crores, were transferred illegally to Young Indian, thereby giving the Gandhis control over a vast real estate and media asset portfolio without any direct monetary investment.
The ED stated in court, “The accused persons have obtained proceeds of crime to the tune of ₹142 crore by using Young Indian as a special purpose vehicle for acquiring control over AJL.” These proceeds, according to the agency, were used for various purposes including settling liabilities, while unlawfully enjoying the benefits of the assets held by AJL.
Money Laundering Charges Under PMLA
The ED further submitted that a prima facie case of money laundering has been established against both Sonia and Rahul Gandhi. Based on their financial analysis and tracing of transactions, the agency claims that the financial benefits enjoyed by the Gandhis stem directly from criminal misconduct in the acquisition process.
This follows earlier questioning of several Congress leaders, including Mallikarjun Kharge, who was then associated with AJL, and Pawan Bansal, who signed many of the financial documents that are now under scrutiny. The agency emphasized the need for custodial interrogation of all involved for further clarity.
Political Battle Over ED Action
The Congress party has dismissed the allegations as a political witch hunt, accusing the Modi government of misusing central agencies to target the opposition. Congress spokespersons have called the ED’s move an “act of vendetta” meant to defame the leadership and distract from real issues facing the country.
While addressing party workers, a senior Congress leader said, “This is a blatant attempt to harass the leadership of the only party capable of challenging the BJP at the national level.” The party insists that no crime has been committed and that all financial transactions were within legal boundaries.
What Happens Next?
The Delhi court will now review the ED’s submission and determine the admissibility of the evidence. If it finds merit in the agency’s case, summons or further action could follow, potentially complicating the political future of both Sonia and Rahul Gandhi.
This case, which has been under investigation since 2014, could significantly impact the Congress party’s image and its leadership narrative ahead of the next general elections. Meanwhile, the ED is expected to continue tracking related transactions and examining documents seized during previous raids.
