In a fresh twist to the National Herald case, the Enforcement Directorate (ED) on Wednesday told a Delhi court that several senior Congress leaders engaged in “fake transactions” that existed only on paper to funnel funds into Associated Journals Limited (AJL), the company that once published the now-defunct National Herald newspaper.
Appearing for the ED, Additional Solicitor General V Raju alleged that fabricated rent receipts and fraudulent advance rent payments were made over several years to AJL at the behest of top Congress leaders. “Funds were routed to AJL in the guise of rent and advertisement payments, despite there being no legitimate financial activity. These transactions are fake and hold no economic substance,” the ED argued before the court.
The agency also claimed that advertising revenue was directed to AJL under similar instructions from party leadership, with all such funds now being classified as proceeds of crime (POC). “Any asset obtained through fraudulent means qualifies as POC under the law,” the ED said, responding to the court’s query.
The ED pointed out that certain share transfers within AJL also raise red flags. According to the agency, journalist Suman Dubey transferred shares to Sonia Gandhi, while Oscar Fernandes transferred shares to Rahul Gandhi — who later returned them to Fernandes. “These are all fake transactions, merely on paper,” Raju argued.
Critically, the ED contended that until 2015, only two individuals — Sonia Gandhi and Rahul Gandhi — were the actual beneficiaries with full control over AJL’s assets and functioning.
The court raised a pertinent question during the hearing: If advance rent and advertising payments are being classified as POC, shouldn’t the individuals making those contributions — many of whom are senior Congress members — also be treated as respondents? The ED responded that the investigation is ongoing and that further clarity on these assets will be presented in a supplementary chargesheet.
What is the National Herald Case?
The National Herald, founded by Jawaharlal Nehru in 1938 and published by AJL, served as a key Congress party publication until it ceased operations in 2008 due to mounting debts of over ₹90 crore. In 2012, BJP leader Subramanian Swamy filed a complaint alleging financial misconduct by Congress leaders in the acquisition of AJL by a newly formed company, Young Indian Pvt Ltd — where Sonia and Rahul Gandhi held key stakes.
The case continues to unfold in court, with political ramifications intensifying as the ED digs deeper into financial records and connections.