National Herald Case: Unraveling The Financial Controversy

The National Herald case, a high-profile legal battle, centers on allegations of financial impropriety involving Congress leaders Sonia and Rahul Gandhi and the newspaper National Herald. What exactly is all the noise about? Read on.

Founded in 1938 by Jawaharlal Nehru, National Herald was published by Associated Journals Limited (AJL). By 2008, AJL faced severe financial strain, halting operations. To address this, the Congress party extended a Rs 90.21 crore loan to AJL, a move that later sparked controversy.

In 2010, this loan was converted into equity shares, effectively turning the debt into ownership stakes in AJL. These shares, representing 99% of AJL’s ownership, were then transferred to Young Indian (YI), a company where Sonia and Rahul Gandhi hold 76% of the shares, for just Rs 50 lakh.

Also Read: The National Herald Case: What The ED's Chargesheet Actually Says

This deal gave YI control over AJL’s assets, including prime real estate valued at Rs 2,000 crore at the time, now estimated at Rs 5,000 crore. The Enforcement Directorate (ED) alleges this was a "criminal conspiracy" to seize AJL’s properties, claiming YI, despite its not-for-profit status, conducted no charitable activities and evaded Rs 414 crore in taxes.

The case emerged in 2012 when BJP leader Subramanian Swamy filed a complaint, accusing the Gandhis of misusing AJL’s assets for personal gain. The ED’s probe, intensified by 2021, culminated in a chargesheet today naming Sonia and Rahul as accused, alongside Congress associates and YI. The agency recently moved to seize Rs 661 crore in AJL assets, alleging money laundering.

The Gandhis and Congress reject the charges, asserting the transaction was lawful and aimed at reviving National Herald. They label the ED’s actions as politically motivated by the Modi government. With no convictions yet, the case, pending a hearing on April 25, highlights India’s polarized politics, where legal battles often mirror electoral rivalries, leaving the truth entangled in competing narratives.

Also Read: Most Corrupt Family In The World! BJP Slams Gandhi Family