India’s Gandhis Charged in Money Laundering Case Amid Protests
India’s opposition Congress party announced nationwide protests after the Enforcement Directorate (ED) charged senior leaders Sonia and Rahul Gandhi with money laundering. The charges, presented іn a Delhi court, accuse the Gandhis оf creating a shell company tо illegally acquire National Herald assets worth over 20 billion rupees ($233 million).
Congress spokesperson Jairam Ramesh labeled the charges as “politics оf vendetta and intimidation” by the government. The Gandhis, who have denied any wrongdoing, have not commented оn the charges. The investigation also involves other Congress members, including Sam Pitroda.
The Allegations: Acquisition of National Herald Assets
The ED launched its investigation in 2021 after a complaint from BJP member Subramanian Swamy. Swamy claimed that the Gandhis used party funds to take control of Associated Journals Limited (AJL), the publisher of National Herald, and illegally acquired properties worth millions through AJL.
Congress maintains it bailed out AJL due to its historical significance, lending over 900 million rupees over the years. In 2010, AJL cleared its debts by swapping them for equity and assigning shares to a newly formed company, Young Indian. The Gandhis hold 38% of Young Indian, with the rest owned by Congress leaders, including Motilal Vora and Sam Pitroda.
Last week, the ED accused Young Indian of acquiring AJL properties worth 20 billion rupees for just 5 million, undervaluing them. The ED also issued notices to seize assets worth 6.6 billion rupees across various Indian cities tied to Young Indian. The case will be heard on April 25.
Political Context and National Herald’s History
The opposition accuses the Modi government of weaponizing the ED for political purposes. Since 2014, the agency has summoned, questioned, or raided numerous opposition figures.
National Herald, founded in 1938 by Jawaharlal Nehru, became closely associated with India’s independence movement. Despite financial troubles, it was bought by Congress in 2010 and relaunched digitally in 2016. The newspaper was published by AJL, which was established with 5,000 freedom fighters as shareholders. AJL also published Qaumi Awaz in Urdu and Navjeevan in Hindi. National Herald ceased publication in 2008 but has a long-standing legacy tied to India’s political history.
