The Enforcement Directorate (ED) has initiated action to take physical possession of immovable properties valued at ₹661 crore in connection with its ongoing money laundering investigation into the National Herald case, which is linked to the Congress party. The move, carried out under Section 8 and Rule 5(1) of the Prevention of Money Laundering Act (PMLA), follows the confirmation of earlier provisional attachments by the Adjudicating Authority.

The ED announced on Saturday that possession notices were served and affixed on Friday at three key properties—Herald House located at ITO in Delhi, a building in Mumbai’s Bandra area, and another AJL property situated on Bisheshwar Nath Road in Lucknow. These properties belong to Associated Journals Limited (AJL), the publisher of the National Herald newspaper, and were previously attached by the agency in November 2023.

Background and Basis of Investigation

The ED's probe into the case began in 2021 and stems from a criminal complaint filed by BJP leader Subramanian Swamy. The investigation was launched following a June 26, 2014, order issued by the Metropolitan Magistrate at Patiala House Courts in New Delhi. The complaint alleged a criminal conspiracy involving senior Congress leaders—including Sonia Gandhi and Rahul Gandhi—and the private entity Young Indian Private Limited.

The complaint accuses them of orchestrating a scheme to fraudulently acquire ownership of AJL, and thereby gain control of properties valued at over ₹2,000 crore. Young Indian, which owns AJL, is predominantly controlled by Congress leaders Sonia and Rahul Gandhi, who each hold a 38% stake in the company.

Extent of Alleged Financial Irregularities

According to the ED, “These properties were attached after extensive investigation by ED, which revealed significant generation, possession and use of proceeds of crime to the tune of ₹988 crore.” The agency explained that the attachments were made “to secure the proceeds of crime and to prevent the accused from dissipating the same.”

On November 20, 2023, the ED had issued a provisional attachment order for the properties located in Delhi, Mumbai, and Lucknow, as well as AJL shares valued at ₹90.2 crore. The Adjudicating Authority confirmed this attachment on April 10, 2024, giving the green light for the agency to proceed with physical possession.

Legal and Political Implications

This case has been politically sensitive due to the involvement of prominent Congress figures. The ED’s current actions mark a significant development in a probe that has been ongoing for several years and is seen by some as having broader implications for the party’s leadership. The agency has maintained that its actions are based on substantial financial evidence and follow due legal process under PMLA regulations.

As the ED moves to take control of assets linked to the National Herald case, the matter continues to draw national attention given its high-profile nature. With properties worth hundreds of crores under scrutiny and legal proceedings ongoing, the case is poised to remain a key focus in India’s political and legal discourse. The outcome may have lasting effects on the financial and legal standing of the Congress party’s leadership.