The Enforcement Directorate (ED) probing the high-profile money laundering case alleges that the first family of the party "abused" their position for personal gains. Congress has earlier alleged it is 'petty vendetta' tactics and said ED is coalition partner of the BJP. File photo
Rahul, Sonia Gandhi charged with criminal conspiracy in National Herald case
Fresh FIR filed by Delhi Police EOW, based on ED complaint, in National Herald case; police press charges under IPC sections 120B, 420
Senior Congress leaders Rahul Gandhi and Sonia Gandhi have been charged with criminal conspiracy in connection with the National Herald money laundering case, on a complaint filed by the ED. The Enforcement Directorate (ED) probing the high-profile money laundering case alleges that the first family of the party "abused" their position for personal gains.
The charges stem from a fresh First Information Report (FIR) filed by the Economic Offences Wing (EOW) of the Delhi Police against six individuals, including the Gandhis.
The FIR comes a day after the Delhi court, before which the ED had filed a chargesheet in the National Herald case in April this year, has deferred the pronouncement of its decision in the case to December 16.
Other accused
The FIR also names Sam Pitroda and three other individuals, along with three companies: Associated Journals Limited (AJL), Young Indian, Dotex Merchandise Private Limited and Dotex promoter Sunil Bhandari.
Investigators allege a criminal conspiracy to “fraudulently take over Associated Journals Limited (AJL),” the parent company of the now-defunct National Herald newspaper.
Also read: National Herald case: Court reserves order on taking cognisance of ED chargesheet
According to the FIR, Dotex Merchandise, an alleged Kolkata-based shell company, allegedly provided ₹1 crore to Young Indian, a not-for-profit entity in which Rahul and Sonia Gandhi held a 76 per cent stake. Young Indian is said to have allegedly paid ₹50 lakh to the Congress Party and subsequently gained control of AJL, which owned assets valued at approximately ₹2,000 crore.
Basis of the FIR
The FIR, dated October 3, was registered following a complaint from the ED, which has shared its investigation report with the Delhi Police.
Under Section 66(2) of the Prevention of Money Laundering Act (PMLA), the ED has the authority to request any agency to register and investigate a scheduled offence.
Origins of the case
The National Herald case dates back to 2012, when BJP leader Subramanian Swamy filed a complaint in a local court alleging that senior Congress leaders were involved in cheating and breach of trust in the acquisition of Associated Journals Limited (AJL). AJL was the publisher of the National Herald, a newspaper founded in 1938 by Jawaharlal Nehru and other freedom fighters.
The National Herald ceased publication in 2008 due to financial difficulties. At that time, AJL had an outstanding debt of ₹90 crore. To help the company recover, the Congress party extended loans totalling ₹90 crore over a decade, disbursed in nearly 100 instalments.
Congress’s position
According to the Congress, AJL and the National Herald were unable to repay the loan, which was subsequently converted into equity shares. Since the party itself could not hold equity, the shares were transferred to Young Indian, a not-for-profit company incorporated in 2010.
Also read: Sonia abused her position to benefit self, son in AJL takeover: ED
Young Indian’s shareholding structure gave Rahul Gandhi and Sonia Gandhi 38 per cent each, while the remaining shares were held by Motilal Vora, Oscar Fernandes, Sam Pitroda, and Suman Dubey.
Through this arrangement, Young Indian became the majority shareholder of AJL, with the two Gandhi leaders serving as directors.
The Congress party has earlier called this investigation as "petty vendetta tactics" and dubbed the ED a "coalition partner" of the BJP.
Police charges
Meanwhile, related to the latest development, official sources said the EOW of the Delhi Police filed a complaint against the Gandhis and seven others on October 3.
The police has pressed charges under sections 120B (criminal conspiracy), 403 (dishonest misappropriation of property), 406 (punishment for criminal breach of trust) and 420 (cheating) of the IPC in the FIR.
ED gets police FIR
A PTI report said that the ED, as per the sources, used powers available to it under section 66(2) of the PMLA to get the police FIR registered. This section allows the federal agency to share evidence for registration of a criminal predicate offence by a law enforcement agency so that it can subsequently book a money laundering case to take forward the investigation.
The FIR will work to strengthen the ED case and the chargesheet which stems from a court order -- Metropolitan Magistrate of Delhi -- that took cognisance of a private complaint by BJP leader Subramanian Swamy on June 26, 2014 against alleged irregularities in the National Herald's affairs, the sources said.
The FIR has taken cognisance of the allegations stated by the ED in a letter sent to the EOW on September 4. The contents of the ED communication are similar to what the central agency is understood to have stated in its chargesheet.
ED probe findings
Rahul Gandhi and his mother Sonia Gandhi were questioned for hours by the ED in this case few years back. The ED claimed its investigation has "conclusively" found that Young Indian, a private company "beneficially owned" by Sonia Gandhi and Rahul Gandhi "acquired" AJL properties worth Rs 2,000 crore for a mere Rs 50 lakh, significantly undervaluing its worth.
It has alleged in the chargesheet that Sonia Gandhi "abused" her position as the former AICC president for personal gains to herself and her son Rahul Gandhi by converting public money for self use through the Young Indian (YI) company.