National Herald Case: 'No Interest, No Collateral—It’s A Fraud,' ED On Sonia, Rahul-Linked Young Indian Deal
ASG Raju argued Young Indian fraudulently acquired AJL's ₹2,000 crore assets for ₹50 lakh via a ₹90 crore loan, benefiting Sonia and Rahul Gandhi-linked Young Indian Pvt. Ltd. firm.
Additional Solicitor General (ASG) S.V. Raju on Wednesday said that Young Indian Pvt. Ltd. was specifically set up to take control of Associated Journals Limited (AJL), which owns assets estimated at ₹2,000 crore. A letter sent by AJL’s Director to the All India Congress Committee (AICC) reportedly stated that the company could not repay its loan as publication activities were suspended and no regular revenue was being generated.
ASG Raju told Rouse Avenue Court in New Delhi, “Young Indian had made a declaration that Sonia Gandhi and Rahul Gandhi were beneficial owners. Sonia Gandhi, Rahul Gandhi, Suman Dubey, and Sam Pitroda were key managerial personnel in Young Indian,” news agency ANI reported.
The ASG submitted that AJL, despite holding assets worth thousands of crores, was taken over for a ₹90 crore loan, which he argued was sold off for merely ₹50 lakh without any interest or collateral. Calling the transaction a “fraud,” Raju claimed, “It was not a genuine transaction. AJL was not acquired by the Congress, but by Young Indian. It was a conspiracy.”
“Congress did not charge the interest, nor collateral. Rs. 90 crores loan was sold for Rs. 50 Lakh,” ASG said, as per ANI.
ASG S V Raju argued that the company AJL, having assets of Rs. 2000 crores, was taken over for a loan of Rs. 90 crores. It is a fraud. It was not a genuine transaction. AJL was not acquired by the Congress, but by the Young Indian. It was a conspiracy, he added.
— ANI (@ANI) July 2, 2025
Congress did…
The court listed the matter for hearing further arguments of ED for tomorrow, July 3.
ED Cited ₹142 Crore of Alleged Proceeds of Crime
This comes after the Enforcement Directorate (ED) informed a Delhi court in May that Congress Parliamentary Party Chairperson Sonia Gandhi and Leader of Opposition Rahul Gandhi allegedly benefited from ₹142 crore worth of “proceeds of crime” linked to the National Herald case. ASG Raju, representing the ED, argued that the accused continued to profit from these proceeds until the agency attached assets in November 2023, news agency IANS reported.
The ED stated that a prima facie case under the Prevention of Money Laundering Act (PMLA) was established against Sonia Gandhi, Rahul Gandhi, Congress Overseas Chief Sam Pitroda, Suman Dubey, and others. Following the ED’s opening arguments, Special Judge (PC Act) Vishal Gogne at Rouse Avenue Courts directed daily hearings on the matter from July 2 to July 8 to hear submissions from the agency and the proposed accused.
Judge Gogne also instructed the ED to provide a copy of its prosecution complaint to BJP leader Subramanian Swamy, whose private complaint in 2012 prompted the agency’s investigation into alleged misappropriation of AJL’s assets. Earlier, on May 2, the court had issued show cause notices to Sonia Gandhi, Rahul Gandhi, and other accused, asking why cognisance should not be taken based on the ED’s charge sheet.
The ED’s charge sheet, filed against senior Congress leaders, valued the suspected proceeds of crime at ₹988 crore. It alleged that the Congress leadership misused AJL’s assets — originally meant for public purposes through the National Herald newspaper — for personal gain by acquiring them at undervalued prices via Young Indian. In November 2023, the ED attached immovable properties worth ₹661 crore and AJL shares valued at ₹90.2 crore, terming them as proceeds of crime.
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