The case alleges that Young Indian, a company in which the Gandhis reportedly have a 38 percent stake each, assumed the debt of Associated Journals Limited (AJL), the publisher of the National Herald newspaper, for a nominal amount of Rs 50 lakh. This transaction would have allowed Young Indian to gain control of AJL’s real estate assets across the country, which investigators estimate to be worth nearly Rs 2,000 crore.
The case dates back to 2008, when the National Herald stopped publishing, leaving behind a debt of over Rs 90 crore. In seventeen years, it has become one of the most politically sensitive legal battles in India.
HERE’S HOW THE CASE Evolved OVER THE YEARS
- 2008: AJL ceased operations with debts of over Rs 90 crore. The Congress party reportedly provided interest-free loans to AJL.
- 2010: YI was founded and owned by Sonia Gandhi, Rahul Gandhi and senior Congress leaders Motilal Vora and Oscar Fernandes.
The Congress granted the recovery rights of its Rs 90 crore loan to YI in exchange for Rs 50 lakh, allowing YI to acquire majority shares in AJL.
Then the high-stakes legal battle began.
- 2012: BJP leader Subramanian Swamy has filed a criminal complaint in a Delhi court alleging fraud and criminal misappropriation.
- 2014: A magistrate court summoned Sonia Gandhi, Rahul Gandhi and others, noting that YI appeared to be a “sham structure” to transfer public assets for private use.
The same year, the Income Tax Department and the ED initiated separate preliminary investigations.
- 2015: The Delhi High Court upheld the summons and dismissed the Gandhi family’s plea. Sonia and Rahul Gandhi later appeared in court and were granted bail.
- 2016: The Supreme Court exempted the suspect from personal appearance, but refused to quash the proceedings.
- 2018: The ED formally filed a case under the Prevention of Money Laundering Act (PMLA), relying on findings of the Income Tax Department and Swamy’s complaint.
- 2022: The investigation was intensified. Rahul Gandhi was interrogated for more than 50 hours over five days in June, while Sonia Gandhi was interrogated in multiple sessions in July. Buildings associated with AJL and YI were also searched.
- 2023: The ED has provisionally seized properties of AJL in Delhi, Mumbai and Lucknow, fixing the value of the seized assets at over Rs 750 crore.
- 2024: Congressional officials and former AJL officials faced new rounds of questioning. The ED filed another complaint under PMLA, which the Congress challenged, claiming that all transactions were transparent and legal.
- April 2025: The ED filed a chargesheet under PMLA in the special MP/MLA court in Delhi, with Sonia and Rahul Gandhi among the prime accused.
- October 2025: Based on its findings, the ED wrote a letter to the Economic Offenses Wing (EOW) of Delhi Police seeking registration of a fresh FIR.
- November 2025, the latest development: the Economic Crimes Wing of Delhi Police registered a fresh FIR against the accused. Besides Sonia and Rahul Gandhi, the FIR names Congress leaders Suman Dubey and Sam Pitroda, besides unidentified persons.
KEY MOVEMENTS
Multiple proceedings, including Subramanian Swamy’s private complaint, the Income Tax department, the ED’s PMLA filings and the recent FIR, present overlapping but distinct charges.
Fraudulent takeover and land grabbing: Swamy’s 2012 complaint alleged that YI was created as a shell entity to take ownership of AJL’s government-allocated assets, rented out for press and public purposes rather than for commercial use.
Criminal conspiracy: Investigators allege a criminal conspiracy for the planned takeover of AJL’s properties for the “private benefit” of YI’s ultimate owners.
Abuse of party funds: The complainants and ED argue that political parties, which enjoy tax exemptions, are legally barred from borrowing money for commercial purposes under the Representation of the People Act, 1951 and other tax rules. They allege that party funds were channeled to facilitate YI’s control of AJL.
Money laundering: The ED alleges a conspiracy to gain control of AJL’s Rs 2,000 crore worth of assets for just Rs 50 lakh. It also considers the rental income and income, nearly Rs 1,000 crore, as ‘proceeds of crime’, and states that YI served as a vehicle for money laundering, including claims of donations linked to ticket candidates.
Tax evasion: Income Tax Department officials have alleged that YI, despite being registered as a non-profit organization, was not engaged in legitimate charitable activities. It alleges that the ownership structure resulted in around Rs 414 crore of alleged tax evasion.
Commercial abuse of government leased land: The investigating agencies allege that several of AJL’s properties were used to generate commercial rent, in violation of lease terms intended for newspaper operations.
In the new FIR, the Gandhis have been accused of criminal conspiracy, dishonest misappropriation of property, criminal breach of trust and cheating. Others named in the FIR include Congress leaders Suman Dubey and Sam Pitroda, and unidentified others.
The Congress alleged that the ‘Modi-Shah duo’ continues with its mischievous politics of intimidation, intimidation and revenge against the party’s top leadership. The party also said the National Herald issue is a “completely bogus case” and that justice will ultimately prevail.
Founded in 1938 by Jawaharlal Nehru and other leaders of the freedom movement, the National Herald served as a platform to express the ideals of the Indian National Congress for almost seventy years. It faced financial problems in the early 2000s and eventually closed permanently in 2008, marking the beginning of the legal battle that continues to this day.
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