In a significant development, an adjudicating authority under the Prevention of Money Laundering Act (PMLA) has upheld the attachment of assets worth approximately ₹752 crore belonging to the Congress-run National Herald newspaper and associated firms. The Enforcement Directorate (ED) had initiated the attachment, citing these assets as “proceeds of crime” involved in money laundering.
Under the provisions of the PMLA, the adjudicating authority is tasked with determining within 180 days whether the properties attached by the ED are linked to money laundering activities. In its ruling, the authority stated that Associated Journals Limited (AJL) and Young Indian (YI) Private Limited, the entities associated with National Herald, “failed to discharge the burden of proof” to demonstrate that the assets were not derived from criminal activities.
The order, issued on Wednesday evening, highlighted the ED’s substantial evidence linking the attached properties to the alleged proceeds of crime. The National Herald, published by AJL and owned by YI, has come under scrutiny as ED probes allegations of irregularities in transactions involving these entities.
ED’s provisional attachment of assets on November 20, 2023, totaled over ₹751.9 crore, including immovable assets worth ₹661 crore and shares valued at ₹90 crore. The agency alleges a criminal conspiracy to transfer control of valuable AJL properties to the major shareholders of YI, Sonia Gandhi, and Rahul Gandhi.
During the proceedings, AJL and YI argued against the ED’s actions, labeling them as arbitrary and mala fide. The Congress party has vehemently denied these accusations, characterizing the case as a “witch-hunt” against its leaders.
The upheld attachment of assets underscores the ongoing legal battle surrounding the National Herald case, with ED’s assertions of money laundering and the affected parties’ steadfast denials, setting the stage for further legal proceedings and scrutiny.
Sources By Agencies
