The Enforcement Directorate (ED) has alleged a coordinated effort by senior Congress leaders across multiple states to funnel large sums of money into Young Indian Limited, a company controlled by Rahul Gandhi and Sonia Gandhi and at the centre of the ongoing National Herald case investigation.
According to the ED’s chargesheet filed on Friday, senior Congress figures, acting on directions from the party’s top leadership, contributed lakhs of rupees to Young Indian in what the agency describes as part of a sophisticated financial cover-up. The ED asserts that Rahul Gandhi and Sonia Gandhi were direct beneficiaries of these funds, which were transferred to the company under the pretext of donations.
The core of the ED’s allegations centers on Young Indian’s acquisition of Associated Journals Ltd (AJL)—the original publisher of the National Herald newspaper. The agency claims that Young Indian acquired AJL’s assets, valued at over ₹2,000 crore, for a nominal amount of ₹50 lakh. This deal, the ED alleges, forms the foundation for potential charges of money laundering and misappropriation of assets.
Spotlight on Telangana Contributions
A substantial part of the alleged illicit donations originated from Telangana. The ED claims that in 2022, four Congress leaders from the state collectively contributed over ₹80 lakh to Young Indian. These contributions were reportedly made at the direction of then-MLA and now Chief Minister Revanth Reddy.
Among the donors named, Gali Anil Kumar—who had previously contested the 2019 Lok Sabha elections—donated ₹20 lakh in June 2022. Former MLA Ali Shabbir also gave ₹20 lakh, while the then Telangana Congress Treasurer P. Sudarshan contributed ₹15 lakh. The largest single contribution from the state came from the then Working President of the Telangana Congress, who donated ₹25 lakh. All these transactions reportedly occurred within a single month.
Also Read: Delhi Court issues notices to Sonia, Rahul in NH case
Karnataka and Punjab Leaders Also Implicated
The ED’s investigation has expanded beyond Telangana, identifying similar donation patterns in Karnataka and Punjab. In Karnataka, senior Congress leader Pawan Bansal is alleged to have instructed the state Congress president, D.K. Shivakumar, and his brother, MP D.K. Suresh, to each donate ₹25 lakh to Young Indian in April 2022. In the same month, a trust associated with Shivakumar—the National Education Trust—reportedly donated ₹2 crore to the company.
In Punjab, the ED has traced donations totalling ₹3.30 crore made by Amit Vij, a former Assembly election candidate. The contributions were made in three tranches in 2015.
Sources within the agency suggest that these payments were not legitimate voluntary contributions, but rather structured transactions aimed at routing funds into Young Indian as part of a calculated plan. The ED is currently examining whether these transactions constitute violations under the Prevention of Money Laundering Act (PMLA).
“The scale, timing, and coordination of these donations point to a systemic strategy to channel party funds into Young Indian through trusted party leaders,” a senior ED official said. With the investigation ongoing, the ED is preparing to summon several of the individuals named for questioning and is expected to file supplementary evidence before the court in the coming weeks.
Despite the mounting allegations, the Congress party has consistently dismissed the case as politically motivated, insisting that all the financial transactions in question were entirely legal. Nevertheless, the developments signal a possible escalation in the political stakes surrounding the National Herald case, potentially reigniting it as a major national controversy.
In the chargesheet, the ED has named Sonia Gandhi as Accused No. 1 and Rahul Gandhi as Accused No. 2 under the PMLA, along with five other individuals.
Also Read: ED alleges Sonia, Rahul Gandhi benefited ₹142 Cr in Herald case
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