ED Alleges ‘Fake Transactions’ in National Herald Case, Names Top Congress Leadership in Ongoing Probe

New Delhi: The Enforcement Directorate (ED) has intensified its investigation into the National Herald case, alleging that several senior Congress leaders were involved in orchestrating fraudulent financial transactions tied to Associated Journals Limited (AJL), the publishing company behind the defunct National Herald newspaper.

In submissions made before a Delhi court, the ED claimed that a number of transactions, including advance rent payments and advertising revenues directed to AJL, were fabricated and existed only on paper. These transactions, according to the agency, were allegedly made under the direction of top Congress leadership and lacked any legitimate economic purpose.

The ED has further argued that such transactions amount to proceeds of crime under existing financial laws. The agency pointed to rent payments totaling ₹142 crore—already classified as proceeds of crime—while raising questions about an additional ₹29 crore, which has not yet been categorically defined in the same manner. The court, during the hearing, sought clarification on this distinction and asked whether donors, many of whom are prominent Congress figures, could be considered complicit if the funds were part of a broader fraudulent scheme.

The ED also highlighted suspicious share transfers, including one involving journalist Suman Dubey allegedly transferring shares to Sonia Gandhi, and another involving Oscar Fernandes and Rahul Gandhi. According to the agency, these transactions were circular in nature and served no economic purpose, implying they were structured solely to consolidate control over AJL in the hands of Sonia and Rahul Gandhi.

The court questioned the agency on whether all rent and advertisement payments should be uniformly classified as proceeds of crime. The ED responded that their investigation is ongoing and that a supplementary chargesheet would further detail which assets and transactions qualify under the definition of proceeds of crime, and from which point in time.

Launched in 1938 by Jawaharlal Nehru and other freedom fighters, the National Herald was originally envisioned as a platform for liberal voices within the Congress. Published by Associated Journals Limited, it played a prominent role in post-Independence Congress politics. By 2008, however, the newspaper had ceased operations amid rising debts reported to exceed ₹90 crore.

The financial and political controversy surrounding AJL’s assets gained national attention in 2012, when BJP leader Subramanian Swamy filed a complaint alleging financial misconduct by Congress leaders. He claimed that Young Indian Pvt Ltd—a firm in which Sonia Gandhi and Rahul Gandhi hold majority stakes—had taken control of AJL and its assets through a deceptive arrangement.