Explained: What the new FIR in National Herald case means for Rahul Gandhi and Sonia Gandhi

In a fresh legal trouble for the Gandhi family in the long-running National Herald saga, the Economic Offences Wing of Delhi Police has filed a fresh FIR, naming Sonia Gandhi, Rahul Gandhi and four others. 

The FIR, dated October 3 and registered on a complaint forwarded by the Enforcement Directorate (ED), alleges that the Gandhis, along with other persons and companies, fraudulently acquired control over Associated Journals Ltd (AJL), the publisher of the National Herald newspaper, under a criminal conspiracy.

What the fresh FIR alleges

According to the FIR, the accused had effected control of AJL, with its valuable real estate properties in several cities, by using a convoluted financial scheme for a consideration that was a small fraction of its actual value. Essentially, the allegation is that 99 per cent of AJL's shares were transferred to Young Indian, a private company, for mere Rs 50 lakh. Sonia and Rahul Gandhi are said to hold 76 per cent shares in Young Indian (38% each), and the remaining was distributed among others.

The FIR further states that the acquisition was preceded by a loan of around Rs 90 crore originally extended by the Indian National Congress to AJL, which was later converted into equity and transferred to Young Indians for the nominal sum. This transaction, it alleges, is a sham meant to transfer AJL's vast property holdings, reputedly worth up to Rs 2,000 crore, into private hands.

Further, the FIR and the earlier chargesheet by the ED underline that a Kolkata-based firm, Dotex Merchandise Pvt Ltd—which was described as a shell company—routed nearly Rs 1 crore to Young Indian, which allegedly helped execute the takeover.

Beyond the question of share transfers, investigators claim monetary flows far beyond the initial transaction. The ED has claimed that the YI–AJL network was used to generate what it calls proceeds of crime in the form of fake donations, bogus advance rent, and fictitious advertisements, amounting to several crores.

"AJL also collected bogus advance rent to the tune of Rs. 38.41 crore during the period 2017-18. The rent received was found to be fake, as no rent agreements existed. On inquiry from the concerned entities, it was found out that the money was transferred to AJL on the instructions of senior Congress leaders without any actual commercial transaction. This shows that the accused have been continuing to indulge in the offence of money laundering by using AJL, which is under the control and management of Young Indian, as an instrument to generate further proceeds of crime. During the investigation, it is revealed that lease agreements with TCS and JSW projects were properly drafted and executed, while the agreements with the other nine parties mentioned in the table below were not executed," reads the FIR.

It further stated, "AJL also claimed to have received revenue of Rs 29.45 crore from advertisements published in its newspapers during the period 2017-18 to 2020-21. It was revealed during the investigation that out of this, Rs 15.86 crore was claimed to be received from various Congress-affiliated bodies and the rest of the amount i.e. Rs. 13.59 crore was received from other entities.“

According to the complaint, the persons/entities whose names were mentioned in the ledgers of advertisement were summoned, and they stated that they had paid the amount on instructions of the Congress leaders and some of them even deposed that the money was paid to seek protection from the Congress leaders in the course of their regular business. 

“Most of the advertisements given do not commensurate with the business purposes of the donors as these advertisements are mostly in the form of congratulatory messages/birthday wishes to the Congress top leaders,” says the FIR.

Legal fallout

The fresh FIR significantly raises the ante. The case had moved along tediously through courts and agency investigations, with provisional attachments of assets issued across Delhi, Mumbai, and Lucknow in 2023 confirmed by the ED in April 2025.

Now, with criminal conspiracy charges under an FIR, in addition to earlier money laundering prosecution, the Gandhis face charges both on the civil and criminal fronts. The FIR lists not just the two, but also their close associates, such as Sam Pitroda, along with AJL, Young Indian and Dotex Merchandise Pvt Ltd, as accused.

What happens next

An FIR has catalysed a new phase of the legal process. The investigating agencies now have a formal criminal case under which they can arrest, search, seize and question, thus potentially widening the scope beyond just money laundering.

Now, a Delhi court will have to take cognisance of the FIR and decide whether the accused will face trial. Meanwhile, the ED's chargesheet remains pending before a special PMLA court.

For Sonia and Rahul Gandhi, the new FIR brings the National Herald case beyond paper filings, turning it into a full-fledged case. Once the trial begins, it can open the possibility of forfeiture of assets and the prosecuting agency gathering evidence to prepare ground for conviction, resulting in a bitter political battle. Already, the Congress has claimed that the case is a political witch-hunt and “completely bogus".

The defence

In July 2022, when the ED questioned Sonia Gandhi at its headquarters in New Delhi, she is learnt to have told the agency that a Rs 90-crore interestIn July 2022, when the ED questioned Sonia Gandhi at its headquarters in New Delhi, she is learnt to have told the agency that a Rs 90-crore interest-free loan was given to the AJL by the Congress party to bring the ailing newspaper back to health.

But the ED has rejected the revival story. It claims that most of the prime properties acquired by AJL from central and state governments by sale or lease for the publication of the newspaper started acting as golden hens in the real estate market to earn income for the company.

The investigators said that when AJL failed to repay the loan, the All India Congress Committee, the apex body of the Indian National Congress, executed a formal deed on December 28, 2010, assigning the entire loan amount in favour of Young Indian, set up in November 2010, in which Sonia Gandhi and her son Rahul Gandhi were majority shareholders. 

The investigators argued that Young Indian, with a share capital of Rs 5 lakh, did not have deep pockets to buy the loan, and that is where the role of alleged Kolkata-based shell companies comes into play. 

However, the Gandhis have maintained that the Young Indian Ltd was created under Section 25 of the Companies Act as a not-for-profit company and no dividend could be given to its shareholders or directors.

They also claimed that AJL was incurring huge financial losses, and the publication of the newspapers had to be stalled on many occasions owing to financial difficulties and labour problems. It finally got suspended on April 2, 2008, with all employees availing voluntary retirement.