Crores uncovered as ED traces alleged cash trail to Gandhi-led firm in explosive cover-up scandal

In a damning escalation of the National Herald case, the Enforcement Directorate (ED) has accused top Congress leadership of orchestrating a nationwide financial funneling operation, directing party veterans to make high-value donations to Young Indian Limited — a company helmed by Sonia Gandhi and Rahul Gandhi.

According to a detailed chargesheet filed Friday, the ED claims these donations — running into crores — were not voluntary acts of party allegiance, but carefully calibrated transfers executed under the direction of senior Congress functionaries. The agency alleges the funds were channeled into Young Indian as part of a broader strategy to camouflage financial irregularities and misappropriate assets.

Alleged misuse of party machinery

The crux of the ED's case revolves around Young Indian’s 2011 acquisition of assets worth ₹2,000 crore from Associated Journals Ltd — publishers of the now-defunct National Herald — for a mere ₹50 lakh. The probe agency has called this a “well-orchestrated financial cover-up,” with Sonia and Rahul Gandhi allegedly positioned as primary beneficiaries.

In a sharp spotlight on intra-party mechanics, the ED alleges that senior Congress leaders across Telangana, Karnataka, and Punjab transferred lakhs — even crores — to Young Indian in a tightly coordinated fashion.

Telangana: Money transfers on command

Telangana emerged as a key node in the alleged operation. The ED states that in June 2022 alone, four state Congress leaders collectively donated over ₹80 lakh to Young Indian, reportedly following instructions from then-MLA and current Chief Minister Revanth Reddy.

• Gali Anil Kumar, a 2019 Lok Sabha candidate, donated ₹20 lakh
• Former MLA Ali Shabbir matched that with another ₹20 lakh
• Party Treasurer P. Sudarshan added ₹15 lakh
• The highest amount — ₹25 lakh — was allegedly sent by the then Working President of the Telangana Congress

All donations were made within a single month, raising suspicions of an orchestrated drive rather than spontaneous contributions.

Karnataka and Punjab followed suit

The pattern repeated across state borders. In Karnataka, under instructions from senior Congress figure Pawan Bansal, state Congress President DK Shivakumar and MP DK Suresh reportedly donated ₹25 lakh each in April 2022. Additionally, the National Education Trust — linked to Shivakumar — wired a staggering ₹2 crore to Young Indian that same month.

Punjab Congress leader Amit Vij, a former Assembly poll candidate, allegedly transferred ₹3.3 crore in three tranches back in 2015.

“The pattern, timing, and coordination of these donations suggest a systematic effort to inject funds into Young Indian using party loyalists and state-level leaders,” an ED official was quoted as having said.

Legal and political aftershocks

The ED has charged Sonia Gandhi as Accused No. 1 and Rahul Gandhi as Accused No. 2 under the Prevention of Money Laundering Act (PMLA), alongside five other individuals. With supplementary evidence in the pipeline, the agency is expected to summon several party leaders for interrogation in the coming weeks.

Meanwhile, the Congress party has strongly rebutted the allegations, dismissing the case as “politically motivated” and asserting the legitimacy of all financial dealings. Yet, with fresh names emerging and investigations intensifying, the National Herald saga is once again poised to erupt as a pivotal battleground in India’s turbulent political landscape.