Congress Party Mobilizes Amid Money Laundering Charges
India’s opposition Congress party is set to launch nationwide protests on Wednesday following serious allegations of money laundering against senior leaders Sonia and Rahul Gandhi. The Enforcement Directorate (ED) has accused the Gandhis of establishing a shell company to illegally acquire assets of the National Herald newspaper, valued at over 20 billion rupees (approximately $233 million). The party has vehemently denied these charges, labeling them as politically motivated attacks by the ruling government.
Allegations and Legal Proceedings
The Enforcement Directorate presented its findings in a Delhi court on Tuesday, detailing accusations against Sonia and Rahul Gandhi, along with other Congress members. The ED claims that the Gandhis orchestrated a scheme to form a shell company that facilitated the illegal acquisition of the National Herald’s assets. Congress spokesperson Jairam Ramesh condemned the allegations, describing them as “politics of vendetta and intimidation” by the government.
Despite the serious nature of the charges, the Gandhis have refrained from commenting publicly. The investigation, which began in 2021, was prompted by a private complaint from Subramanian Swamy, a member of the ruling Bharatiya Janata Party (BJP). Swamy alleged that the Gandhis misappropriated party funds to take control of Associated Journals Limited (AJL), the publisher of the now-defunct National Herald, and illegally acquired properties worth millions through this entity.
The Congress party maintains that it supported AJL due to its historical significance and claims to have lent over 900 million rupees to the publisher over the years. In 2010, AJL became debt-free by converting its debt into equity, which was assigned to a newly formed company called Young Indian. The party asserts that Young Indian operates as a “not-for-profit company,” with no dividends distributed to its shareholders or directors.
Details of the Investigation
According to reports, the Enforcement Directorate’s investigation has also implicated other Congress leaders, including Sam Pitroda, who heads the party’s overseas operations. The ED’s findings suggest that Young Indian acquired AJL properties worth 20 billion rupees for a mere 5 million, raising questions about the legitimacy of the transaction.
In addition to the allegations, the ED has issued notices to seize assets valued at 6.6 billion rupees across various cities in India, including Delhi and Mumbai, that are linked to Young Indian. The case is scheduled for a hearing on April 25, where further developments are anticipated.
The Legacy of the National Herald
The National Herald newspaper, founded in 1938 by Jawaharlal Nehru, India’s first prime minister and Rahul Gandhi’s great-grandfather, has a storied history. It ceased publication in 2008 due to financial difficulties but was later acquired by the Congress party in 2010 and relaunched as a digital news outlet in 2017. The newspaper was published by Associated Journals Limited (AJL), which was established in 1937 with 5,000 freedom fighters as shareholders. Historically, the National Herald played a significant role in India’s freedom struggle and was known for its nationalist stance. Nehru often contributed strongly worded columns, leading to the paper’s ban by the British government in 1942, although it resumed publication three years later. After India gained independence in 1947, Nehru stepped down as chairman to assume the role of prime minister, but the Congress party continued to influence the newspaper’s editorial direction. Over the years, the National Herald became a prominent English daily, supported by the Congress party, until its closure in 2008 due to ongoing financial issues. The current allegations against the Gandhis have reignited discussions about the newspaper’s legacy and its ties to the political landscape in India.
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