In a significant development in the National Herald money laundering case, the Enforcement Directorate (ED) told a Delhi court on Wednesday that senior Congress leaders Sonia Gandhi and Rahul Gandhi were direct beneficiaries of Rs 142 crore in proceeds of crime.
The agency maintained that a clear case under the Prevention of Money Laundering Act (PMLA) had been established.The central agency’s explosive submission came before Special Judge Vishal Gogne at the Rouse Avenue Court, as the court began preliminary hearings on whether to take cognisance of the ED’s prosecution complaint.
The complaint names not just the Gandhis, but also Sam Pitroda, Suman Dubey, Young Indian Pvt Ltd, and two associated firms.
According to the ED, Young Indian was set up as a shell entity with a singular purpose—to wrest control of Associated Journals Ltd (AJL), the publisher of the now-defunct National Herald, and its real estate assets allegedly valued at over Rs 2,000 crore.
The agency alleged that public donations made to the Congress party were funneled through this structure to generate private wealth.Additional Solicitor General (ASG) SV Raju described Young Indian as “a sham entity” during the proceedings, stating it had no legitimate commercial activity and was used solely to launder funds.
The roots of the case go back to a 2014 private criminal complaint by BJP leader Dr. Subramanian Swamy. The ED began its formal investigation in 2021.
In November 2023, the agency attached multiple properties, claiming the accused had continued to enjoy the benefits of the proceeds of crime—including rental income totalling Rs 142 crore—up until that point.
Senior advocate Abhishek Manu Singhvi, representing the defence, requested more time to respond, citing the voluminous 5,000-page case file.
The court is now tasked with weighing whether the evidence presented justifies summoning the accused for trial.
