The National Herald scam is one of India’s most controversial financial scandals, involving top leaders of the Indian National Congress, especially Sonia Gandhi and Rahul Gandhi. This article explains the scam step-by-step, from its origins to the latest developments, in simple language. It also dives into allegations of how the Gandhi family amassed wealth, abused power, and engaged in anti-India activities, as well as other scandals linked to them and their party. We’ll name all individuals involved, clarify their status, and highlight the Enforcement Directorate’s (ED) recent actions. The story paints a troubling picture of greed and betrayal, with the Gandhi family and Congress at the center, accused of exploiting India’s trust.
Please Note: This Article is best simplified as per Author’s Knowledge
Part 1: What is the National Herald?
The Birth of a Newspaper
Founded in 1938: The National Herald was a newspaper started by Jawaharlal Nehru, India’s first Prime Minister, along with other freedom fighters like Sardar Patel and Rafi Ahmed Kidwai. It aimed to support India’s independence movement by giving a voice to the freedom struggle.
Owned by AJL: The newspaper was published by Associated Journals Limited (AJL), a company set up in 1937 to manage the paper and its assets. AJL also ran two other publications: Qaumi Awaz (Urdu) and Navjeevan (Hindi).
Historical Role: The newspaper was banned by the British from 1942 to 1945 during the Quit India Movement, earning it a reputation as a symbol of resistance. However, it struggled financially despite its fame.
Financial Troubles
Mounting Losses: By the early 2000s, the National Herald was losing money fast. It had too many staff and not enough revenue. By 2008, it shut down, unable to survive.
Congress Loans: To keep AJL afloat, the Indian National Congress, led by Sonia Gandhi, gave it an interest-free loan of ₹90.25 crore (about $11 million) between 2002 and 2010. This loan was given in multiple installments, but AJL couldn’t repay it.
AJL’s Valuable Assets
Real Estate Empire: Despite its financial woes, AJL owned valuable properties across India, including:
Herald House: A six-story building in Delhi’s Bahadur Shah Zafar Marg, with 10,000 square meters of office space.
Properties in Mumbai, Lucknow, Bhopal, Indore, Patna, and Panchkula.
Total estimated value: ₹2,000–5,000 crore (hundreds of millions of dollars).
Controversial Use: Critics allege AJL misused these properties, renting them out for profit (e.g., leasing land for a passport office in Delhi) instead of using them for publishing, violating the terms of land allocation.
Part 2: The Scam Unfolds – Young Indian Enters the Scene
Creation of Young Indian
Formed in 2010: In November 2010, a new company called Young Indian Private Limited (YIL) was created as a “not-for-profit” entity under Section 25 of the Companies Act. It had a small capital of ₹5 lakh (about $5,800).
- Key Players:
Sonia Gandhi: Joined as a director in January 2011, holding 38% of shares. - Rahul Gandhi: Appointed director in December 2010, also holding 38% of shares.
- Motilal Vora: Congress treasurer and AJL chairman, held 12% of shares.
- Oscar Fernandes: Senior Congress leader, held 12% of shares.
- Suman Dubey: Journalist and Congress loyalist, a managing committee member.
- Sam Pitroda: Entrepreneur and Congress associate, also involved.
Purpose Questioned: YIL claimed to be a charitable organization focused on promoting social causes, but critics argue it was a shell company created to grab AJL’s assets.
The Alleged Fraud
Loan Transfer: In 2010, the Congress party assigned its ₹90.25 crore loan to AJL to Young Indian for just ₹50 lakh. This meant YIL took over AJL’s massive debt for a tiny payment.
Acquisition of AJL: Instead of demanding repayment, YIL converted the loan into equity shares, gaining control of 99% of AJL’s shares. This gave YIL ownership of AJL’s properties, worth billions, for a fraction of their value.
Shareholder Betrayal: AJL had over 1,000 shareholders, including prominent figures like Shanti Bhushan and Markanday Katju. They claimed their shares were transferred to YIL without their consent or knowledge, accusing the Gandhi family of fraud.
Criminal Intent: Courts later noted that YIL appeared to be a “sham” created to “convert public money to personal use” by acquiring AJL’s ₹2,000 crore assets.
Subramanian Swamy’s Complaint
Filed in 2012: BJP leader and lawyer Subramanian Swamy filed a private complaint in a Delhi court, accusing Sonia Gandhi, Rahul Gandhi, and others of:
- Cheating and breach of trust.
- Criminal misappropriation of AJL’s assets.
- Violating the Income Tax Act, as political parties cannot engage in financial transactions with third parties.
Allegations:
- The Gandhi family used YIL to grab AJL’s properties worth ₹2,000–5,000 crore for just ₹50 lakh.
- They misled shareholders and misused Congress funds.
- They earned illegal rental income from AJL properties, betraying the newspaper’s legacy.
Part 3: Investigations and Legal Battles
Enforcement Directorate Steps In
Probe Launched in 2014: The ED began investigating the case for possible money laundering under the Prevention of Money Laundering Act (PMLA). It was briefly closed but reopened in 2015 after Swamy raised concerns.
Key Findings:
YIL and AJL generated “proceeds of crime” through fake donations (₹18 crore), advance rent (₹38 crore), and advertisements (₹29 crore).
AJL’s properties were undervalued, allowing YIL to control assets worth ₹2,000 crore for ₹50 lakh.
Questioning Leaders: The ED summoned and questioned:
- Sonia Gandhi
- Rahul Gandhi
- Motilal Vora
- Oscar Fernandes
- Mallikarjun Kharge (Congress president)
- Pawan Bansal
- D.K. Shivakumar (Karnataka Deputy CM)
- D.K. Suresh (his brother, Congress MP)
Court Actions
2014 Court Ruling: A Delhi trial court found “prima facie” evidence of criminal breach of trust, cheating, and conspiracy by Sonia Gandhi, Rahul Gandhi, and others. It summoned them to appear.
2015 High Court: The Delhi High Court dismissed appeals by the accused, noting “criminal intent” in the deal. It ordered them to face trial.
2016 Supreme Court: The Supreme Court exempted the accused from personal appearances but refused to quash the case, allowing the trial to continue.
Tax Reassessment: In 2018, the Supreme Court allowed the Income Tax department to reassess Sonia and Rahul Gandhi’s 2011–12 tax filings but barred action until 2019.
Asset Seizures
2019: The ED attached AJL properties worth ₹64 crore.
November 2023: The ED issued a provisional attachment order for assets worth ₹751.9 crore, including:
- Herald House in Delhi
- Nehru Bhawan in Lucknow
- Properties in Mumbai and other cities
- AJL equity shares held by YIL
April 2024: The PMLA Adjudicating Authority upheld the ED’s attachment, calling the assets “proceeds of crime” linked to money laundering. This allowed the ED to take possession.
April 2025 Update: The ED served notices to property registrars in Delhi, Mumbai, and Lucknow to seize AJL properties worth ₹661 crore and YIL’s shares worth ₹90.2 crore. It also ordered a tenant in Mumbai’s Herald House to pay rent to the ED, signaling a tightening noose.
Part 4: Who’s Involved and Their Status
Named in the National Herald Case
- Sonia Gandhi: Congress president, 38% shareholder in YIL. Accused of orchestrating the scam. Facing trial, questioned by ED.
- Rahul Gandhi: Congress MP, 38% shareholder in YIL. Accused of fraud and money laundering. Facing trial, questioned by ED. Needed court clearance for a passport in 2023.
- Motilal Vora: Congress treasurer, AJL chairman, 12% YIL shareholder. Key figure in the deal. Died in 2020.
- Oscar Fernandes: Congress leader, 12% YIL shareholder. Summoned by courts. Died in 2021.
- Suman Dubey: Journalist, YIL managing committee member. Accused of complicity. Facing trial, status unclear.
- Sam Pitroda: Entrepreneur, named in Swamy’s complaint. Summoned by courts. Alive, but legal status unclear.
- Mallikarjun Kharge: Congress president, questioned by ED. Not a primary accused, facing trial.
- Pawan Bansal: Congress leader, questioned by ED. Not a primary accused, facing trial.
- D.K. Shivakumar: Karnataka Deputy CM, questioned by ED. Not a primary accused, facing trial.
- D.K. Suresh: Congress MP, questioned by ED. Not a primary accused, facing trial.
Status Summary
Alive and Facing Trial: Sonia Gandhi, Rahul Gandhi, Suman Dubey, Sam Pitroda, Mallikarjun Kharge, Pawan Bansal, D.K. Shivakumar, D.K. Suresh.
Deceased: Motilal Vora, Oscar Fernandes.
No Imprisonments: None of the accused are currently in prison; all are out on bail or awaiting trial outcomes.
Ongoing Case: The trial continues, with courts upholding charges of criminal breach of trust, cheating, and money laundering
Part 5: Latest Developments (April 2025)
As of April 2025, the National Herald case remains a major controversy, with the ED intensifying its crackdown:
Asset Seizure Confirmed: On April 10, 2024, the PMLA Adjudicating Authority upheld the ED’s attachment of ₹751.9 crore in assets, including Herald House and properties in Mumbai and Lucknow. These are deemed “proceeds of crime.”
Possession Initiated: On April 11, 2025, the ED served notices to property registrars to take possession of ₹661 crore in AJL properties and ₹90.2 crore in YIL shares. A Mumbai tenant was ordered to pay rent to the ED.
Congress’s Response: Congress leaders, including Mallikarjun Kharge, called the ED’s actions “vendetta politics” by the BJP, claiming the National Herald is a legacy of the freedom struggle. They vow to fight legally.
Public Sentiment: Some call the scam a “Kohinoor” of Congress corruption.
Next Steps: The ED can now seize the assets, but final confiscation awaits a trial court ruling. If convicted, the accused face up to 7 years in jail under PMLA.
Question
Has anyone wondered how come Gandhi Family is so rich without any full time Businesses, and just as politicians?
