The Enforcement Directorate (ED), while presenting its case in a Delhi court on July 2, 2025, has made serious allegations against senior Congress leaders involved in the alleged money laundering case related to the National Herald newspaper. According to the ED’s counsel, Sonia Gandhi, Rahul Gandhi, and their associates are accused of using “fake transactions” to illegally channel funds through the media company Associated Journals Limited (AJL), which was responsible for publishing the National Herald.

Sonia and Rahul Gandhi’s Ownership of AJL Allegedly for ₹50 Lakh

Additional Solicitor General (ASG), S.V. Raju, representing the Enforcement Directorate, informed the court that Sonia Gandhi and her son, Rahul Gandhi, gained complete ownership of Associated Journals Limited (AJL) for a mere ₹50 lakh. According to the ED’s investigation, AJL is a valuable entity, with properties worth more than ₹2,000 crore located in various cities such as Delhi, Lucknow, Bhopal, Indore, Panchkula, and Patna. These properties were allegedly given to AJL by both the Central Government and State Governments following India’s independence, with the intention of promoting the publication of a national newspaper.

Allegations of Fake Transactions and Money Laundering

The ED’s counsel also accused several close associates of the Gandhi family and senior Congress leaders of being appointed as directors of AJL. These individuals are said to have conducted “fake transactions” to funnel money through the company. The charge relates to money laundering and the alleged misappropriation of assets worth over ₹2,000 crore through fraudulent means.

The National Herald case, which has long been a point of political contention, stems from an earlier ₹90 crore loan that the Congress Party allegedly advanced to AJL. The loan was later transferred to Young Indian, a private company that is reportedly controlled by members of the Gandhi family. This transaction was valued at ₹50 lakh, which is the price paid for the loan.

The Political Implications of the Case

The case has deep political implications, particularly for the Congress Party and its leaders. The BJP has consistently claimed that the National Herald case is a clear instance of fraud, corruption, and money laundering. Subramanian Swamy, a senior BJP leader, filed the initial complaint in this case, accusing several prominent figures, including Sonia Gandhi, Rahul Gandhi, Motilal Vohra, Oscar Fernandes, Suman Dubey, and Sam Pitroda, of being involved in a criminal conspiracy to siphon off funds from AJL.

As the case progresses, Rahul Gandhi and Sonia Gandhi continue to be key figures in this ongoing investigation, which has become a focal point of political discourse. The Congress leadership, in turn, has dismissed the allegations as politically motivated and part of a broader conspiracy to target them.

Details of the Prosecution Complaint

The ED’s prosecution complaint was filed on April 15, 2025, and the court proceedings are now moving forward. During the hearing, ASG S.V. Raju laid out the details of the money laundering charges, highlighting the alleged role of Congress leaders in manipulating transactions involving Young Indian, the private company allegedly linked to the Gandhis.

The complaint is based on the claim that the loan of ₹90 crore, given by Congress to AJL, was converted into a fraudulent transaction, resulting in misappropriation of assets. The case centers on the equity transaction through which Young Indian acquired control of AJL and its assets.

Charges of Corruption and Conspiracy

The ED’s complaint also includes accusations of criminal conspiracy, wherein the Congress leaders involved, including Sonia Gandhi, Rahul Gandhi, and others, are accused of misappropriating public funds and taking advantage of their positions to enrich themselves at the expense of public property. The government agency has argued that this was done through an elaborate network of shell companies and fake transactions intended to launder money.

As the Special Judge Vishal Gogne of the Rouse Avenue Court began the hearing on July 2, 2025, the case was marked by high tensions, with arguments from both sides intensifying. The ED has expressed its determination to pursue the case with full vigor, maintaining that this is a clear case of misuse of political power for personal and financial gain.

Impact on Political Landscape and Future of the Case

This case has not only impacted the legal trajectory of the accused Congress leaders but also shaken the political landscape in India. The BJP views this as a potential scandal that could damage the credibility of the Congress Party ahead of 2024 elections, while the Congress Party argues that it is a ploy to weaken their leadership and tarnish their reputation.

The court’s decision to proceed with the case is critical, and it will likely influence public opinion regarding the legal battles faced by the Gandhi family and other opposition leaders.

The National Herald case remains a contentious issue, blending legal complexities with political ramifications. As the Enforcement Directorate continues its investigation into the financial dealings of AJL and the involvement of Congress leaders, the coming weeks will witness a significant legal battle.

With Sonia Gandhi and Rahul Gandhi in the spotlight, this case has the potential to reshape the discourse surrounding political corruption, money laundering, and fraud in India. The developments in the case will likely play a pivotal role in the public perception of the Congress Party and the opposition’s future, especially with the 2024 elections approaching.