ED moves to seize Rs 661-cr properties in Herald case

The Enforcement Directorate (ED) has issued notices to take possession of immovable assets worth Rs 661 crore that it had attached as part of a money laundering probe linked to the Congress-controlled Associated Journals Limited (AJL).

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The attached properties are Herald House at Bahadur Shah Zafar Marg in New Delhi, the AJL building in Lucknow and another property located in Bandra, Mumbai.

In a statement, the anti-money laundering agency said the notices to take possession had been affixed at the properties on April 11.

The notices seek vacation of the premises or transfer of rent (in the case of the Mumbai property) to the ED.

The action has been taken under Section (8) and Rule 5(1) of the Prevention of Money Laundering Act (PMLA) that talks about the procedure of taking possession of the assets that are attached by the ED and confirmed by the PMLA adjudicating authority.

The immovable assets were attached by the ED in November 2023. The ED case is against the AJL and Young Indian Private Limited.

The National Herald newspaper is published by the AJL and owned by Young Indian. Congress leaders Sonia Gandhi and Rahul Gandhi are majority shareholders of Young Indian with 38 per cent shares held by each one of them.

"Young Indian and AJL properties were used for generation of further proceeds of crime in the form of bogus donations to the tune of Rs 18 crore, bogus advance rent to the tune of Rs 38 crore and bogus advertisements of Rs 29 crore," the ED alleged.

"The properties were attached after extensive investigation by the ED. The probe revealed significant generation, possession and use of proceeds of crime to the tune of Rs 988 crore. Therefore, to secure the proceeds of crime and to prevent the accused from dissipating the same, the immovable properties of the AJL located at Delhi, Mumbai and Lucknow, valued at Rs 661 crore, along with the shares of the AJL worth Rs 90.2 crore were attached by issuing provisional attachment order on November 20, 2023. The order was confirmed by the adjudicating authority on April 10, 2024," the agency said in a statement.

The ED investigation into the case had begun in 2021, on the basis of an order issued on June 26, 2014, by the Metropolitan Magistrate, Patiala House Courts, New Delhi. The case is based on a private complaint filed by BJP leader Subramanian Swamy.

The complaint alleged a criminal conspiracy by several prominent political figures, including Sonia, Rahul and a host of other Congress leaders and the private company, Young Indian, for alleged involvement in a money laundering scheme related to the fraudulent takeover of properties valued over Rs 2,000 crore belonging to the AJL.