BY PC Bureau
New Delhi: April 12, 2025
The Enforcement Directorate (ED) announced on Saturday, April 12, 2025, that it is proceeding to seize immovable assets valued at ₹661 crore (approximately $80 million USD) belonging to the Associated Journals Limited (AJL) in connection with an ongoing money laundering investigation. AJL was previously controlled by the Indian National Congress.
This action by the ED is a significant development in a long-standing and politically sensitive case. The agency stated in a press release that on April 11, 2025, it served notices to the Registrars of properties located in Delhi, Mumbai, and Lucknow, where AJL holds assets. These notices were issued in compliance with Section 8 of the Prevention of Money Laundering Act (PMLA), 2002, and Rule 5(1) of the Prevention of Money Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013.
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Furthermore, a notice under Rule 5(3) of the same rules was served to M/s Jindal South West Projects Limited, which currently occupies the 7th, 8th, and 9th floors of Herald House in Bandra (East), Mumbai. This notice directs Jindal South West Projects Limited to transfer the monthly rent or lease payments to the Director of the Enforcement Directorate.
Background of the Case:
The money laundering case against AJL stems from a complaint filed by Bharatiya Janata Party (BJP) leader Subramanian Swamy in 2012. The core of the allegations revolves around a transaction that took place in 2010 involving Young Indian Private Limited, a company in which prominent Congress leaders Sonia Gandhi and her son Rahul Gandhi hold a majority stake (over 75% of shares).
As part of the process to take possession of the tainted properties in the Associated Journals Limited (AJL) money laundering case, the Directorate of Enforcement (ED) in compliance with Section 8 of PMLA, 2002 and Rule 5(1) of the Prevention of Money Laundering (Taking…
— ED (@dir_ed) April 12, 2025
11:361″>The allegations are that AJL, which owned the National Herald newspaper and other publications, was facing financial difficulties. Congress allegedly provided unsecured loans to AJL amounting to ₹90.25 crore. Subsequently, AJL’s rights to its immovable assets, reportedly worth hundreds of crores, were transferred to Young Indian for a nominal sum of ₹50 lakh.
Subramanian Swamy argued that this transaction was illegal and aimed at acquiring valuable properties of AJL for personal gain. He contended that a political party cannot provide loans for business purposes and that the transfer of assets to Young Indian was a fraudulent misappropriation of public funds and AJL’s assets.
The Gandhis and other Congress leaders have consistently denied these allegations, asserting that the transactions were legitimate and aimed at reviving the struggling newspaper. They have maintained that there was no misappropriation of assets or any intention of personal enrichment.
The Enforcement Directorate initiated its money laundering investigation based on a predicate offense registered by the Income Tax Department concerning the same transactions. The ED’s case alleges that the funds provided by the Congress to AJL were proceeds of crime and that the subsequent acquisition of AJL’s properties by Young Indian constituted money laundering.
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Prior to this move to seize possession, the ED had provisionally attached AJL’s assets in different locations. The Adjudicating Authority under the PMLA had confirmed these attachment orders, paving the way for the ED to take physical possession of the properties.
This case has been a major point of contention in Indian politics, with the Congress party accusing the government of using investigative agencies for political vendetta. The BJP, on the other hand, maintains that the law is taking its course and that those involved in financial irregularities will be held accountable. The latest action by the ED signifies a further escalation in this politically charged legal battle.
