A Delhi court heard on Wednesday that the Enforcement Directorate may add the All India Congress Committee as an accused in its money laundering probe linked to the National Herald, pending additional evidence. Additional Solicitor General S V Raju, appearing for ED, argued the agency has the prerogative to extend charges to the party if the investigation substantiates its involvement.
The submissions came during a special court session presided over by Judge Vishal Gogne, concerning the cognisance of charges in the Prevention of Money Laundering Act case against Sonia and Rahul Gandhi, Sam Pitroda, Suman Dubey, and others related to Associated Journals Limited and Young Indian Pvt Ltd.
ASG Raju outlined how AJL, publisher of the National Herald, acquired a loan of approximately ₹90 crore interest-free from the All India Congress Committee despite holding assets estimated at ₹2,000 crore. He claimed that the loan was subsequently converted into equity in Young Indian, controlled predominantly by Sonia and Rahul Gandhi, who hold a 76 percent stake.
The ED asserts this transaction amounted to a fraudulent scheme in which AJL was effectively taken over for ₹50 lakh—merely a fraction of its asset value—through Young Indian, with no collateral or commercial rationale, thereby constituting money laundering. ASG Raju termed this “absurd” and “fraud”, noting that prudent borrowers dispose real estate if unable to repay.
During cross‑examination, Judge Gogne queried whether the write‑off of loans is common practice among banks and state‑owned enterprises, and why the Congress party has not yet been named, despite writing off the loan. Raju replied that unlike banks with no recoverable assets, AJL possessed significant assets that were surrendered in return for a relatively small loan. He said the party may not have been named pending further evidence, though the ED retains the authority to do so.
The ED also alleges proceeds of crime worth around ₹142 crore have been traced to the Gandhis, though the full figure cited in the charge sheet exceeds ₹900 crore. The agency plans to continue hearings daily until evidence on cognisance is fully considered by July 8, with arguments focusing on AJL’s asset transfers and Young Indian’s formation.
The Supreme Court in early May criticised the ED’s tendency to make allegations without adequate evidence—a pattern observed in other high‑profile PMLA cases; this context was referenced by the defence during proceedings.
Court proceedings are scheduled to resume Thursday, when the ED will face further scrutiny on its allegations. The potential naming of the All India Congress Committee as an accused could significantly broaden the scope of the investigation and raise critical questions regarding the formal financing channels and political accountability in such transactions.
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