Importance Score: 72 / 100 🔴
India’s Congress Party to Stage Nationwide Demonstrations Over Money Laundering Allegations Against Gandhis
The opposition Congress party in India has announced plans for widespread nationwide protests starting Wednesday. This action follows accusations from the country’s financial crime agency, the Enforcement Directorate (ED), which has formally charged senior Congress leaders Sonia Gandhi and Rahul Gandhi, among others, with money laundering offenses.
Enforcement Directorate Accuses Gandhis of Financial Misconduct
During a court appearance in Delhi on Tuesday, the Enforcement Directorate presented its findings, alleging that the Gandhis orchestrated a clandestine company to illicitly seize assets belonging to the National Herald newspaper. The assets are estimated to be valued at over 20 billion rupees, equivalent to $233 million or £176 million.
Congress Party Denounces Charges as Political Vendetta
Jairam Ramesh, spokesperson for the Congress party, vehemently refuted the accusations, branding them as “politics of vendetta and intimidation” orchestrated by the current government.
The Gandhis, who have previously denied any involvement in illicit activities, have yet to issue a public statement regarding these recent charges.
National Herald Case: Key Points of the Investigation
News agency ANI reports that the investigation extends to other Congress party figures, including Sam Pitroda, the party’s overseas division chief.
vCard.red is a free platform for creating a mobile-friendly digital business cards. You can easily create a vCard and generate a QR code for it, allowing others to scan and save your contact details instantly.
The platform allows you to display contact information, social media links, services, and products all in one shareable link. Optional features include appointment scheduling, WhatsApp-based storefronts, media galleries, and custom design options.
The Enforcement Directorate’s probe was initiated in 2021 following a private lawsuit filed by Subramanian Swamy, a prominent member of the ruling Bharatiya Janata Party (BJP).
Allegations of Illegal Asset Acquisition
Swamy’s complaint alleges that the Gandhis misused party funds to gain control of Associated Journals Limited (AJL), the publisher of the National Herald newspaper. He further claims they illegally acquired properties worth millions through AJL. Although the newspaper ceased print operations in 2008, it was later revived as a digital news platform.
Congress Party Justifies Financial Assistance to Publisher
The Congress party asserts that its financial support to the publisher was a necessary bailout, citing the National Herald’s historical significance. They acknowledge providing loans exceeding 900 million rupees to AJL over several years.
Creation of Young Indian Company
In 2010, AJL reportedly resolved its debt by converting it into equity and transferring shares to a newly established entity named Young Indian. The Congress party characterizes Young Indian as a “not-for-profit company” that does not distribute dividends to its shareholders or directors.
Gandhi Family’s Stake in Young Indian
Sonia and Rahul Gandhi are identified as directors of Young Indian, each holding a 38% stake in the company. The remaining 24% is distributed among other Congress leaders, including Motilal Vora and Sam Pitroda.
Discrepancy in Asset Valuation
The Enforcement Directorate contends that Young Indian acquired AJL properties, valued at 20 billion rupees, for a mere 5 million rupees, indicating a significant undervaluation of assets.
The agency has also issued multiple orders to seize assets worth 6.6 billion rupees across major Indian cities, including Delhi and Mumbai, all linked to Young Indian.
The case is scheduled for a court hearing on April 25.
Political Context: Opposition Accuses Government of Misusing Enforcement Agencies
In recent years, the opposition parties have consistently accused the Narendra Modi administration of employing the Enforcement Directorate as a tool to target and harass political adversaries.
Data on Actions Against Opposition Politicians
Data compiled by Reuters in 2024 indicates that approximately 150 opposition politicians have been subjected to summons, questioning, or raids by the agency since Modi assumed power in 2014.
Recent Arrest Example
Last year, the ED arrested Arvind Kejriwal, the former Chief Minister of Delhi, in connection with an alleged liquor scam just before crucial general elections. He remained imprisoned for five months before being granted bail.
Background: The National Herald Newspaper
The National Herald newspaper was established in 1938 by Jawaharlal Nehru, India’s inaugural Prime Minister and the great-grandfather of Rahul Gandhi.
After facing financial difficulties, it ceased publication in 2008. However, it was later acquired by the Congress party in 2010 and relaunched as a digital news outlet in 2016.
Associated Journals Limited (AJL)
The newspaper was published by Associated Journals Limited (AJL), founded in 1937 with 5,000 freedom fighters as initial shareholders. AJL also published Qaumi Awaz in Urdu and Navjeevan in Hindi.
The National Herald gained recognition for its close association with India’s independence movement and its nationalist viewpoint.
Jawaharlal Nehru frequently contributed impactful columns, which led to the British government temporarily banning the paper in 1942. It resumed operations three years later.
Nehru’s Role and Congress Influence
Following India’s independence in 1947, Nehru stepped down as chairman of the newspaper upon becoming Prime Minister.
Nevertheless, the Congress party continued to exert considerable influence in shaping the newspaper’s ideological direction.
In a message commemorating the National Herald’s silver jubilee in 1963, Nehru acknowledged the paper “generally favouring Congress policy” while upholding “an independent outlook.”
Over time, the National Herald evolved into a prominent English-language daily, with ongoing support from the Congress party, until its print edition closed in 2008 due to sustained financial woes.