Anti-Corruption Body Approves Seizure of National Herald’s Assets Worth Rs 752 Crore, Dealing Fresh Blow to Congress
In November 2023, the Enforcement Directorate (ED). Took action by attaching immovable assets and equity shares worth approximately Rs 752 crore. In connection with an ongoing money laundering investigation concerning the National Herald newspaper and its affiliated entities.
Adding to the woes of the Congress party, the PMLA Adjudicating Authority has now affirmed the provisional attachment of assets. Valued at Rs 750 crore belonging to Associated Journals Ltd, a company that was later acquired by Young India. Notably, Young India is predominantly controlled by Sonia and Rahul Gandhi.
The ED’s move, initiated in November 2023, involved the attachment of immovable assets and equity shares valued at around Rs 752 crore. In a recent development, the adjudicating authority upheld the ED’s decision. Asserting that there are sufficient grounds to believe that the attached properties are linked. Directly or indirectly, to proceeds of crime and may be intended for concealment. Transfer, or obstruction of proceedings related to confiscation.
Anti-Corruption Body Approves Seizure of National Herald’s Assets Worth Rs 752 Crore, Dealing Fresh Blow to Congress
The authority also deemed the decision of the ED Deputy Director as ‘prima facie sustainable’. It highlighted that the attached assets fall under the definition of ‘proceeds of crime.’ As outlined in section 2(1)(u) of the Prevention of Money Laundering Act, 2002. Thereby warranting confirmation of attachment under section 8(3) of the same Act.
The upheld attachment order could potentially impact the National Herald’s office premises. In ITO, Delhi, Nehru Bhawan in Lucknow, and the Herald House in Mumbai.
Last year, Congress condemned the ED’s decision as ‘vendetta politics’. Particularly as it coincided with the eve of assembly elections in five states. The investigation into this case commenced following a complaint of cheating and criminal conspiracy by Subramanian Swamy. Sonia Gandhi, Rahul Gandhi, and Mallikarjun Kharge have been interrogated by the ED in connection with this matter.
According to Enforcement Directorate (ED)
According to the ED, the accused individuals orchestrated a criminal conspiracy to acquire properties worth hundreds of crores owned by AJL through a special purpose vehicle, Young Indian. Allegations were made that AJL ceased its publishing operations in 2008 and repurposed the properties for commercial use.
Moreover, it was claimed that AJL defaulted on a loan of Rs 90.21 crore owed to the All India Congress Committee (AICC), which was subsequently sold to Young Indian for a nominal amount without adequate means to repay.
Following the acquisition of the loan from the AICC, Young Indian demanded repayment or the allotment of equity shares in AJL. This led to AJL conducting an extraordinary general meeting (EGM) and resolving to increase share capital, issuing fresh shares valued at Rs 90.21 crore to Young Indian. Consequently, the shareholding of over 1,000 shareholders was significantly diluted, reducing their stake to a mere 1 percent, thereby making AJL a subsidiary of Young Indian. Additionally, Young Indian assumed control over AJL’s properties.