Enforcement Directorate Seizes National Herald Properties Worth ₹661 Crore

Properties Linked to Money Laundering Case

The Enforcement Directorate (ED) announced on Saturday that it has issued notices to seize properties worth ₹661 crore. These properties are part of a money laundering investigation involving the National Herald newspaper.

Properties in Delhi, Mumbai, and Lucknow

The properties in question are situated in Delhi, Mumbai, and Lucknow.

Properties Seized in November 2023

The central investigative agency had previously attached these properties in November 2023 under the Prevention of Money Laundering Act. The case was filed against the newspaper’s publisher, Associated Journals Limited, and its holding company, Young Indian Private Limited.

• Sonia Gandhi and Rahul Gandhi are majority shareholders of Young Indian, each holding 38% shares.

Notices Sent to Property Registrars

On April 11, the ED sent notices to the Registrars of Property in Delhi, Mumbai, and Lucknow to initiate the property seizure process. This action followed an extensive investigation that revealed significant generation, possession, and use of proceeds of crime amounting to ₹988 crores.

Properties Seized to Secure Illicit Proceeds

The ED stated that the properties were seized to secure the proceeds of crime and prevent the accused from disposing of them.

Response from Congress MP Abhishek Manu Singhvi

In response, Congress MP Abhishek Manu Singhvi declared that appropriate legal action would be taken against the agency’s move. Singhvi stated that this was a continuation of the proceedings where money laundering is alleged without any money movement, transfers, and the mere transfer of shares being incorrectly treated as money laundering.

National Herald Case Allegations

The National Herald, founded and edited by Jawaharlal Nehru before he became India’s first prime minister, ceased operations in April 2008 due to a debt of over ₹90 crore.

• BJP leader Subramanian Swamy filed a complaint against the newspaper in 2012, alleging that Sonia Gandhi and Rahul Gandhi established Young Indian Private Limited to acquire the debt using party funds.
• Swamy alleged that Young Indian paid only ₹50 lakh to gain the right to recover ₹90.25 crore that the Associated Journals Limited owed to the Congress.
• The Congress has maintained that no money was exchanged and only debt-to-equity conversion took place to settle dues like salaries.