ED Tightens Grip in National Herald Case: Begins Possession of ₹661 Cr AJL Properties Under PMLA

(Judicial Quest News Network)

In a major development in the high-profile National Herald money laundering case, the Directorate of Enforcement (ED) has formally initiated proceedings to take physical possession of immovable properties owned by Associated Journals Limited (AJL) — the company at the heart of a money laundering probe involving several senior political figures.

Acting under Rule 5 of the Prevention of Money Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013, and in compliance with Section 8 of the Prevention of Money Laundering Act (PMLA), 2002, the ED on April 11, 2025, served possession notices to property registrars in Delhi, Mumbai, and Lucknow — cities where AJL’s assets are located.

In addition, the ED served a separate notice under Rule 5(3) to M/s Jindal South West Projects Limited, which currently occupies the 7th, 8th, and 9th floors of Herald House in Bandra (East), Mumbai. The company has now been directed to transfer all monthly lease/rent payments directly to the Directorate of Enforcement, marking a concrete step toward the enforcement body’s control over these tainted assets.

These enforcement actions follow an exhaustive investigation that unearthed the alleged laundering of proceeds of crime worth a staggering ₹988 crores. To prevent further misuse and potential dissipation of these illicit funds, the ED provisionally attached immovable AJL properties in Delhi, Mumbai, and Lucknow valued at ₹661 crores, along with AJL shares valued at ₹90.2 crores, through a Provisional Attachment Order (PAO) issued on November 20, 2023. This attachment was confirmed by the Adjudicating Authority on April 10, 2024.

The Genesis: A Private Complaint that Rocked Indian Politics

The roots of the investigation trace back to a private criminal complaint filed by Dr. Subramanian Swamy on June 26, 2014, in the Metropolitan Magistrate’s Court at Patiala House, New Delhi. The complaint alleged a criminal conspiracy involving top Congress leaders — Sonia Gandhi, Rahul Gandhi, the late Motilal Vora, Oscar Fernandes, as well as Suman Dubey, Sam Pitroda, and the private company Young Indian. The complaint accused the individuals and entities of orchestrating a fraudulent acquisition of AJL, thereby gaining control over real estate assets valued at over ₹2,000 crores, for a paltry ₹50 lakh.

Despite facing legal challenges, the case was upheld by both the Delhi High Court and the Supreme Court, paving the way for an extensive investigation under PMLA provisions.

Investigative Breakthroughs and Financial Trail

The ED conducted multiple search and seizure operations, leading to the recovery of crucial documents that exposed how Young Indian, a company controlled by Sonia Gandhi and Rahul Gandhi, acquired AJL’s vast portfolio of properties at a grossly undervalued price.

Further, ED uncovered that these properties were not dormant — they allegedly generated additional illicit income through:

• Bogus donations amounting to ₹18 crores,
• Fake advance rent payments totalling ₹38 crores, and
• Bogus advertisements worth ₹29 crores.

This sustained misuse of assets, ED claims, shows a clear pattern of layering and laundering of proceeds of crime — reinforcing the need to take actual possession of the properties to curb further illegal benefit from the tainted assets.

Properties Targeted for Possession

Notices have now been affixed on prominent parts of these high-value properties to signify ED’s intent to take over physical possession. One of the key properties under this action is:

• Herald House, Plot No. 2, Survey No. 341, Bandra (East), Mumbai — currently partially leased out.

This enforcement action marks a crucial phase in the National Herald case, underscoring the ED’s determination to recover proceeds of crime and hold accountable those accused of manipulating a charitable institution for personal and political gain.