What is the National Herald Case? Are Sonia, Rahul in Deep Trouble? What Happens Next

With the court now taking cognisance of the chargesheet, all eyes are on the April 25 hearing, which could set the tone for what lies ahead.

What does the Enforcement Directorate’s chargesheet mean for Congress leaders Sonia Gandhi and Rahul Gandhi? Could India’s top Congress leaders actually face prison time? And what are the exact allegations that bring them under such serious legal scrutiny?

These questions are back in the spotlight after the ED filed a prosecution complaint naming Sonia Gandhi and Rahul Gandhi in the National Herald money laundering case, a case that has simmered in political and legal circles for over a decade and now moves into a more serious phase, with the possibility of criminal proceedings, including potential imprisonment.

With the court now taking cognisance of the chargesheet, all eyes are on the April 25 hearing, which could set the tone for what lies ahead.

What is next for Sonia and Rahul Gandhi?

Special Judge Vishal Gogne, who received the chargesheet on April 9, has taken cognisance of the matter and set April 25 as the next date of hearing. If the court finds sufficient grounds, it may summon Sonia and Rahul Gandhi to appear before it formally.

The ED is seeking penalties under Section 4 of the Prevention of Money Laundering Act (PMLA), which carries a maximum imprisonment of 7 years if convicted. If the court proceeds with framing charges and finds the accused guilty, it could lead to serious legal consequences, including jail time for the Gandhis and others named.

Who Has Been Named in the Chargesheet?

The prosecution complaint lists Sonia Gandhi as the prime accused, and Rahul Gandhi is the second accused. Other accused include: Suman Dubey and Sam Pitroda, both linked closely to the Congress party, Young Indian Ltd (YIL) and Dotex Merchandise Pvt Ltd, and Sunil Bhandari, linked to Dotex Merchandise.

The charges invoke Sections 44, 45, and 70 of the PMLA, covering individual and corporate offences.

What Is the National Herald Case?

The National Herald case centers around allegations of financial misconduct involving senior Congress leaders Sonia Gandhi and Rahul Gandhi. At the heart of the matter is the acquisition of the now-defunct National Herald newspaper, originally published by Associated Journals Limited (AJL).

The case began in 2012, when BJP leader Subramanian Swamy filed a petition in a trial court, alleging that Congress leaders had used unfair means to take control of AJL’s vast assets.

The court allowed the Income Tax Department to investigate the matter, and later, the Enforcement Directorate (ED) took over the probe under money laundering charges.

According to the ED, the Gandhis acquired control of AJL through a company called Young Indian Limited (YIL), in which they hold a majority stake of 76 per cent. The agency alleges that the transfer of AJL’s assets which include prime real estate properties in Delhi, Mumbai, and Lucknow (notably the iconic Herald House in central Delhi) was executed through a fraudulent financial route.

In 2023, the ED provisionally attached properties worth Rs 752 crore linked to AJL and YIL. On April 11, 2025, it moved to formally take possession of immovable assets worth Rs 661 crore. Just days later, it named Sonia Gandhi, Rahul Gandhi, and others in a money laundering chargesheet, accusing them of orchestrating a scheme to unlawfully acquire assets meant for journalistic purposes.

The Role of AJL and Young Indian Limited (YIL)

The National Herald was published by Associated Journals Limited (AJL), a company that over the years acquired prime real estate across India. Although the newspaper shut down in 2008 due to financial losses, AJL continued to exist and retained assets reportedly worth over Rs 2,000 crore.

As per reports, in 2010, the Congress party extended an interest-free loan of Rs 90.25 crore to AJL to help clear its dues. Around the same time, a new company, Young Indian Limited (YIL), was incorporated as a not-for-profit entity. Sonia Gandhi and Rahul Gandhi held a 76 per cent stake in YIL (38 per cent each), with the rest held by Congress leaders Motilal Vora and Oscar Fernandes.

Shortly after, YIL acquired 99% of AJL’s shares, effectively taking control of its vast real estate assets. This transaction is at the center of the ED’s investigation, which alleges that it was a deliberate move to gain control over public assets under the guise of a charitable setup.

Allegations Against Congress and Sonia and Rahul Gandhi

The ED alleges that after AJL stopped publishing in 2008, its properties were used for commercial purposes. To settle AJL’s Rs 90.21 crore debt to the Congress party, the loan was written off and transferred to Young Indian Limited (YIL)- a company largely owned by Sonia and Rahul Gandhi for just Rs 50 lakh.
Though YIL is a not-for-profit entity, the ED argues that the real aim was to gain control of AJL’s prime real estate assets, not to pursue charitable objectives.
The AJL properties were also used to generate further proceeds of crime – including bogus donations worth Rs 18 crore, fake advance rent, and Rs 29 crore in fabricated ad revenues all part of what it calls a larger money laundering scheme.

Congress Defends the Gandhis

Congress has strongly rejected the ED’s charges, calling them politically motivated and a tool for the BJP-led Centre to target opposition leaders. The party said that Young Indian is a not-for-profit company, making personal financial gain impossible.
Regarding the Rs 90 crore loan, Congress says it was meant solely to clear AJL’s debts and revive the National Herald not to acquire real estate or earn profits. Leaders have labelled the chargesheet as part of a larger political vendetta.

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