ED grills Sonia Gandhi in National Herald Case: What are the allegations against the Congress chief?

Congress interim president Sonia Gandhi, who has been summoned by the Enforcement Directorate (ED) in the National Herald case, joined the investigation today. She arrived at the probe agency’s headquarters a little after noon and was accompanied by her children Rahul and Priyanka Gandhi-Vadra.

The Congress leader will be questioned by an additional director-level woman officer and would be allowed to rest if the probe tires her out. Sonia Gandhi is deposing on her third summons as she sought an exception on earlier dates – 8 June and 23 June – because she was infected with the coronavirus.

Congress President smt Sonia Gandhi Ji, Shri @RahulGandhi ji and smt @priyankagandhi ji reaches ED office. pic.twitter.com/laHKDLyeLx

— Krishna Allavaru (@Allavaru) July 21, 2022

Posters of Sonia Gandhi were seen at the Parliament complex on Tuesday as protests against the ED probe intensified. Demonstrations were held across the country and senior party leaders like Sachin Pilot, Jairam Ramesh and Adhir Ranjan Chowdhury have been detained

In June, Rahul Gandhi was questioned by the ED for over 50 hours over five days.

What is the National Herald case?

Bharatiya Janata Party (BJP) leader Subramanian Swamy filed a private complaint before a trial court in Delhi in 2012, alleging cheating and misappropriation of funds by the Gandhi family during the acquisition of the newspaper. He alleged that the Gandhis had acquired properties owned by National Herald by buying over the newspaper’s erstwhile publishers through Young Indian Pvt Limited (YIL), in which they have an 86 per cent stake.

In the complaint, Sonia Gandhi, Rahul Gandhi and others have been accused of misappropriating funds by paying just Rs 50 lakh, through which Young Indian had obtained the right to recover Rs 90.25 crore that The Associated Journals (AJL), the publisher of the paper, owed to the Congress. The loan given to AJL was “illegal”, as it had been taken from party funds, according to the complaint.

Swamy has alleged that Young Indian, which has the mother-son duo on its board of directors, had “taken over” the defunct media organisation in a “malicious” to make profits and gain assets to the tune of Rs 2000 crore.
Congress treasurer Motilal Vora, general secretary Oscar Fernandes, journalist Suman Dubey and technocrat Sam Pitroda were also named in the case.

What are The Associated Journals and Young Indian?

The Associated Journals was the publisher of the National Herald, a newspaper launched by India’s first prime minister Jawaharlal Nehru. It was founded by him in 1937.

Apart from Nehru, 5000 freedom fighters were stakeholders in the AJL. This number came down to 1000 by 2010, according to a report in The Financial Express. In 2008, The National Herald shut down with a debt of over Rs 90 crore.

Young Indian was set up by the Congress in November 2010 with Rahul and Sonia Gandhi holding a majority stake of 76 per cent. The remaining 24 per cent was shared between Vora and Fernandes.

The offices of both AJL and YIL were registered at Herald House in New Delhi’s ITO.

How did Congress get involved?

The National Herald was not printing issues because of the losses it incurred. However, the Congress party decided to revive it because of the role it played in India’s struggle for independence.

The party granted a Rs 90-crore interest-free loan to the publisher, AJL, which it failed to repay.

What’s the alleged scam?

In 2010, the Congress assigned the debt to Young Indians, which meant that AJL had to now pay the Rs 90-crore sum to the company.

Since the publishers were unable to pay the loan, they transferred all the money to YIL, which was owned by the Gandhis. For this, they furnished Rs 50 lakh.

The allegations against the Gandhis are that they took over a publicly held company with real estate properties worth Rs 2000 crore for Rs 50 lakh.

According to Swamy, the loan given by the Congress was illegal as political parties are not allowed to lend money for commercial purposes. The Gandhis maintain that the party did not receive commercial profit on its loan to the publishers.

What have the courts said so far?

In June 2014, the court summoned the Gandhis and the other accused in the case.

Metropolitan Magistrate Gomati Manocha had said back then that from the complaint and the evidence so far it appeared that Young Indians was “created as a sham or a cloak to convert public money to personal use”.

However, the court had noted that this was only “the stage of summoning” and the accused had the right to refute the allegations and defend themselves.

In July 2014, the Congress leaders moved the High Court which stayed the summons.

In February 2016, the Supreme Court directed Sonia Gandhi, Rahul, and other accused to face criminal proceedings in the case, saying “let there be a fair trial”. However, it had exempted the Gandhis from appearing in court saying that the accused leaders were “prominent persons” and would not run away.

#WATCH Delhi | Congress leaders, workers raise slogans in support of party chief Sonia Gandhi who will shortly be appearing before ED in National Herald case pic.twitter.com/Oszf4Wu7ba

— ANI (@ANI) July 21, 2022

What has the ED investigation revealed so far?

It was in August 2014 that ED launched a probe to see if there was any money laundering involved. The investigation was reopened in August 2015.

As the investigation continued, a portion of a nine-storey building in Mumbai’s plush Bandra area was attached by the ED in May 2020. The Mumbai property, worth Rs 120 crore, was purchased after fraudulently taking a loan from
Delhi’s Syndicate Bank, the investigation found out.

The central probe agency recently questioned senior Congress leaders Mallikarjun Kharge and Pawan Bansal as part of the investigation.

The Income Tax department had said the shares Rahul Gandhi has in YIL would lead him to have an income of Rs 154 crore and not about Rs 68 lakh, as was assessed earlier. It has already issued a demand notice for Rs 249.15 crore to the company for the assessment year 2011-12, reports The Indian Express.

What happened when Rahul Gandhi was questioned?

Rahul was grilled for five days by the ED in June. After being questioned for 30 hours on three consecutive days he was called again for questioning after a four-day break.

Gandhi was questioned about his association with Associated Journals Limited and Young Indian Limited and details of shares in his name and assets belonging to AJL and The National Herald.

The Congress MP from Wayanad has spent almost 50 hours at the ED office over five sittings with the investigators questioning him over multiple sessions and recording his statement under the Prevention of Money Laundering Act.

How has Congress reacted?

The party, which has called the investigation a “political vendetta” has planned a series of satyagrahas across the country. Carrying large banners saying “stop misuse of ED”, Congress leaders held a march inside the Parliament complex.

.@incmumbai under the leadership of MRCC President Shri @BhaiJagtap1 today protested against BJP's vendetta and the unfair ED summons to AICC President Smt. Sonia Gandhi. #सत्य_साहस_सोनिया_गांधी pic.twitter.com/sGeIZLdw3e

— Congress (@INCIndia) July 21, 2022

“There is a misuse of agencies in the country... it’s our right to protest in a democracy, but it is also being crushed upon,” said senior party leader Sachin Pilot, who was detained.

Congress leader Sachin Pilot detained for protesting over ED probe against Sonia Gandhi. "There is misuse of agencies in the country... it's our right to protest in a democracy, but it is also being crushed upon...," he says pic.twitter.com/JQuqfUB3p4

— ANI (@ANI) July 21, 2022

What is the BJP saying?

The BJP has slammed the protests as its “duragrah” (obstinate demand) for protecting the Gandhi family. BJP leader Ravi Shankar Prasad noted that Sonia Gandhi and her son Rahul’s plea to quash the FIR has been dismissed by every court, including the Supreme Court, reports NDTV.

“If the Gandhi family is spotless, why is it anxious? If they have not indulged in corruption then why this ruckus. It’s the duty of probe agencies to investigate people involved in corruption,” Union Minister Anurag Thakur told news agency ANI.

With inputs from agencies

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