New Delhi/IBNS: The Enforcement Directorate (ED) has accused senior Congress leaders Sonia Gandhi and Rahul Gandhi of cheating and money laundering in a case linked to the now-defunct National Herald newspaper.

The ED stated that the mother-son duo used a company called Young Indian to take control over Associated Journals Limited (AJL), which published the National Herald.

It said they illegally acquired the company's assets worth over Rs. 755 crore.

The agency claimed that Sonia Gandhi, then AICC President, and Rahul Gandhi, an AICC General Secretary back then, were directly involved in this decision and transaction.

Instead of paying back the loan, AJL is accused of converting the debt into shares and handing them over to Young Indian on February 26, 2011.

With this, Young Indian gained full control over AJL and its properties in Delhi, Mumbai, Lucknow, Patna, and other cities, all without paying the actual value.

The ED also alleged that Young Indian received fake donations of Rs 18.12 crore in 2017–18 to settle income tax dues.

These donations were reportedly arranged by senior Congress leaders, including the late Motilal Vohra and Oscar Fernandes, and were routed through various people and entities under false names.

The ED accused Sonia Gandhi of misusing her position to transfer the Rs 90.21 crore loan to Young Indian and then converting it into equity shares without proper checks or payments.

The agency said she was fully aware of the scheme and was involved in laundering the money.

Meanwhile, Rahul Gandhi has been accused of becoming a Director in Young Indian on December 13, 2010, and later owning 38% shares. It said the Congress leader played a direct role in converting the AJL loan into shares, even sending demand letters before the loan was officially transferred.

The ED said Rahul tried to shift blame during his questioning in June 2022, pointing fingers at Motilal Vohra.

The probe agency has attached AJL properties worth Rs. 751.91 crore under a provisional order dated November 20, 2023.  Both AJL and Young Indian have challenged the order, and the case is now being heard by the Appellate Tribunal.

The Congress party has not yet issued a formal statement on the fresh ED complaint. Earlier, it called the case “political vendetta” and accused the government of using probe agencies to harass opposition leaders.