What is the National Herald?
The National Herald was launched in 1938 with the slogan “Freedom is in peril, defend it with all your might.” It served as a medium for India’s freedom fighters to express their thoughts during the independence struggle. Founded by Jawaharlal Nehru and other leaders, the newspaper was published by Associated Journals Limited (AJL).
At the time, Nehru was sidelined in the Congress party after Subhash Chandra Bose defeated Mahatma Gandhi’s candidate to become Congress President. The National Herald soon ran into financial trouble in the early 1940s. Struggling under British rule, it suffered low circulation. Nehru famously vowed to sell his house to pay staff salaries rather than let the paper shut down. He also took jabs at wealthy media owners like Mr. Birla, saying, “Hamein baniyagiri nahiin aataa” (I lack business acumen).
Back then, the paper had 5,000 Congress worker-shareholders, but by 2008, that number had dropped to just 1,057. Daily circulation fell below 5,000 copies. Eventually, Nehru’s great-grandson closed the publication. The National Herald, widely seen as the Congress party’s mouthpiece, ceased operations in 2008 with Rs 90.21 crore in debt but still owned real estate assets worth an estimated Rs 2,000 crore — today valued at over Rs 5,000 crore.
What is the National Herald Case?
In 2012, BJP leader Subramanian Swamy filed a complaint accusing Sonia Gandhi, Rahul Gandhi, and other Congress leaders of fraudulently taking control of AJL. He alleged they acquired properties worth Rs 2,000 crore by paying only Rs 50 lakh. These properties include Delhi’s Herald House and properties in Mumbai and Lucknow, valued at around Rs 661 crore. The Enforcement Directorate (ED) claims AJL used these assets commercially, despite receiving them from the government at nominal rates for running a newspaper. The alleged “proceeds of crime” total Rs 998 crore.
In 2018, the government terminated AJL’s lease and sought to evict it from Herald House, citing the lack of news publication. However, the Supreme Court later put a stay on this action.
A chargesheet filed by the ED in the Rs 2,000 crore case names Sonia and Rahul Gandhi, as well as Congress overseas unit chief Sam Pitroda. The first court hearing is scheduled for April 25. If proceedings move forward, the accused will have to appear in court.
How Did the National Herald ‘Scam’ Unfold?
-
In 2010, the Congress party gave AJL an unsecured, interest-free loan of Rs 90.25 crore to clear its debts.
-
Normally, a company in debt would sell its assets to pay dues, but AJL did not do so.
-
AJL owned property worth around Rs 800 crore, including a Delhi office valued at over Rs 90 crore.
-
Instead of selling assets, operations were shut down.
-
Later in 2010, Young Indian Limited (YIL) was formed as a non-profit by Congress loyalists Suman Dubey and Sam Pitroda.
-
Within a month, Sonia and Rahul Gandhi joined YIL’s board and acquired 76% of its shares (38% each), while Dubey and Pitroda exited.
-
Though registered as a charitable organization, YIL had no public record of charitable activities.
-
The Gandhis, through YIL, paid Rs 50 lakh to Congress and assumed control of the Rs 90 crore loan owed by AJL.
-
Essentially, AJL now owed YIL instead of the Congress.
-
YIL then acquired 99% of AJL’s shares by classifying the loan as unrecoverable and transferring it to YIL.
-
Swamy alleged this transfer occurred despite YIL having no income to pay Rs 50 lakh.
-
AJL passed a resolution to issue shares to YIL, which diluted the stake of over 1,000 previous shareholders to just 1%.
-
As a result, AJL became a subsidiary of YIL, transferring control of valuable properties to YIL.
-
Notable shareholders like Shanti Bhushan and Justice Markandey Katju objected, claiming they weren’t informed about the share transfer and citing violations of company law.
-
Congress lawyers claimed all shareholders were notified and only Swamy, a non-shareholder, raised objections.
-
Swamy’s case relied on a PIL angle, arguing the properties were originally given to AJL for journalistic purposes, not commercial use.
-
In 2014, a magistrate criticized Congress, stating that YIL was a sham to convert public money for personal use.
-
The ED closed the case in January 2015 but reopened it in August the same year after Swamy’s persistence.
-
In late 2015, Sonia and Rahul were granted bail by the Patiala court.
-
Their request to quash the case was rejected by the Supreme Court in 2016.
-
Amid the controversy, Rahul Gandhi relaunched the National Herald in 2017 as a weekly and digital publication.
-
Political parties are legally barred from extending loans for commercial activities.
-
Effectively, the Gandhis gained control of properties worth over Rs 5,000 crore by paying only Rs 50 lakh, earning more than the Rs 90 crore debt in rental income.
These events are currently under investigation by the ED, which alleges that the real goal was to unlawfully acquire AJL’s assets and generate further “proceeds of crime.” If found guilty, Sonia and Rahul Gandhi could face up to seven years in prison.
Whatsoever, it is the people of India who were made a jackass. These so-called leaders loot right under the nose of its people and these people trust such leaders is the irony!