The Adjudicating Authority under the Prevention of Money Laundering Act (PMLA) recently confirmed the Enforcement Directorate’s (ED) provisional attachment order involving assets worth Rs.751.9 crore in the National Herald scam. These assets include prime properties in Delhi, Mumbai, and Lucknow owned by Associated Journal Limited (AJL) and Young Indian (YI), associated with Congress leaders Sonia Gandhi and Rahul Gandhi. The ED had previously attached another key property in Panchkula.
The ED’s investigation, initiated last year under the PMLA, revealed a tangled web of financial irregularities allegedly linked to AJL and YI. This probe stemmed from a complaint by BJP leader Subramanian Swamy, accusing Sonia and Rahul Gandhi of manipulating assets from National Herald newspaper’s publishing company (AJL) through a shell company called Young Indian.
According to the ED’s findings, AJL possessed proceeds of crime valued at Rs.661.69 crore through immovable properties across various cities, while YI held proceeds totaling Rs.90.21 crore in AJL’s equity shares.
The court’s scrutiny supported Swamy’s allegations, citing offences like criminal breach of trust, cheating, misappropriation of property, and criminal conspiracy involving seven accused individuals, including Young Indian.
The ED’s investigation uncovered a scheme where AJL’s valuable properties, initially meant for publishing purposes, were acquired through Young Indian, bypassing the original intent. AJL’s substantial loan to the All India Congress Committee (AICC) was dubiously considered non-recoverable and sold to Young Indian for a nominal amount, following which AJL issued shares worth Rs.90.21 crore to YI, diluting shareholders’ stakes significantly.
These findings suggest a complex financial fraud orchestrated to benefit Young Indian at the expense of AJL’s shareholders and the Congress Party’s donors.
