What is National Herald case

National Herald case

What is National Herald case
What is National Herald case
In 2012, Bharatiya Janata Party (BJP) leader and advocate Subramanian Swamy filed a complaint before a trial court alleging that some Congress leaders were involved in cheating and breach of trust in the acquisition of Associated Journals Ltd by Young Indian Ltd (YIL). He alleged that YIL had 'taken over' the assets of the National Herald in a 'malicious' way.

Both Rahul Gandhi and Sonia Gandhi have been summoned by the ED in a probe related to the National Herald case. The ED is currently probing the shareholding pattern, the financial transactions of AJL and YIL, and the role of party functionaries in the functioning of the two entities.
About National Herald
The National Herald was a newspaper founded by Jawaharlal Nehru along with other freedom fighters in 1938. It was meant to voice the concerns of the liberal brigade in the Indian National Congress. Published by Associated Journals Limited (AJL), this newspaper became a mouthpiece of the Congress party after Independence. AJL also published two other newspapers, one each in Hindi and Urdu. In 2008, the paper closed down with a debt of over Rs 90 crore.
About Associated Journals Ltd
Associated Journals Ltd (AJL) was a brainchild of Jawaharlal Nehru. In 1937, Nehru started the firm with 5,000 other freedom fighters as its shareholders. The company did not belong to any person in particular. In 2010, the company had 1,057 shareholders. It incurred losses, and its holdings were transferred to Young India in 2011.
AJL published the National Herald newspaper in English, Qaumi Awaz in Urdu and Navjeevan in Hindi until 2008. On January 21, 2016, AJL decided to relaunch these three dailies.

About Young India Ltd
Young India Ltd was set up in 2010, with Rahul Gandhi, then a general secretary of the Congress party, as a director. While Rahul Gandhi and his mother Sonia hold 76 per cent of the company's shares, the remaining 24% are held by Congress leaders Motilal Vora and Oscar Fernandes. The company is said to have no commercial operations.
Allegations by AJL shareholders
Many shareholders, including former law minister Shanti Bhushan and former chief justice of Allahabad and Madras High Courts Markandey Katju alleged that they were not served any notice when YIL 'took over' AJL and that the shares held by their fathers were transferred to AJL in 2010 without their consent.
Who has been named in the National Herald case by Subramanian Swamy?
Sonia Gandhi, Rahul Gandhi, Motilal Vora, Oscar Fernandes, journalist Suman Dubey and technocrat Sam Pitroda have been named in Swamy’s National Herald case.
National Herald case: Explained
Subramanian Swamy claims that YIL “took over” over the assets of the defunct print media outlet in a “malicious” manner to gain profit and assets worth over Rs 2,000 crore.
Swamy also alleged that YIL had paid just Rs 50 lakh to obtain the rights to recover Rs 90.25 crore which AJL owed the Congress party; it was given the amount earlier as a loan to start the newspaper. He also alleged that the loan given to AJL was “illegal”, as it had been taken from party funds.
In 2014, the Enforcement Directorate initiated a probe to see if there was any money laundering in the case. On 18 September 2015, it was reported that the Enforcement Directorate had reopened its investigation in the National Herald case.
Congress' response to the allegations
The Congress party has claimed that YIL was created “with an aim of charity” and not for any profit. It also claimed that there was “no illegality” in the transaction, as it was “merely a commercial transaction” for transferring shares of the company. It also raised objections to the complaint filed by Swamy, labelling it as “politically motivated”.
National Herald case: The story so far
In 2015, the Supreme Court asked Swamy to make out a case for speedy trial in high court. Sonia and Rahul Gandhi were granted bail in the case by the trial court on December 19, 2015. In 2016, the Supreme Court granted an exemption to all the five accused in the case (the Gandhis, Motilal Vora, Oscar Fernandes and Suman Dubey) from personal appearances while refusing to quash proceedings against them.
In 2018, the Centre decided to end the 56-year-old perpetual lease and evict AJL from Herald House premises on the ground that the latter was not conducting any printing or publishing activity — the ostensible objective for which the building was allotted in 1962. The L&DO had wanted the AJL to hand over possession by November 15, 2018. The eviction order claimed the building was used solely for commercial purposes. However, on April 5, 2019, the Supreme Court ordered a stay on proceedings against AJL under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971, until further notice.

Latest Updates on National Herald case

Gandhis must pay for sins: BJP on ED's attachment of National Herald assets

4 min read Last Updated : Nov 22 2023 | 1:48 PM IST
Shareholders do not become owners: Sibal on ED order on Herald case

4 min read Last Updated : Nov 22 2023 | 11:55 AM IST
Congress is 'Scamgress', it has no right to talk about corruption: KTR

2 min read Last Updated : Nov 03 2023 | 12:12 PM IST
National Herald case: K'taka Cong chief DShivakumar appears before ED again

3 min read Last Updated : Nov 14 2022 | 4:42 PM IST
DK Shivakumar to skip ED summon today to attend party worker's birthday

3 min read Last Updated : Nov 07 2022 | 06:52 AM IST
National Herald case: ED again summons Karnataka Congress chief Shivakumar

3 min read Last Updated : Oct 02 2022 | 8:44 PM IST
Politics heats up as Congress, and BJP go head-to-head

5 min read Last Updated : Aug 08 2022 | 08:33 AM IST
Rahul, Priyanka detained as Congress protests price rise; Houses adjourned

5 min read Last Updated : Aug 06 2022 | 01:58 AM IST
Not afraid of Modi, will not be intimidated: Rahul Gandhi on Herald case

2 min read Last Updated : Aug 04 2022 | 12:59 PM IST
After Herald House sealing, Congress steps up attack on govt in Parliament

2 min read Last Updated : Aug 04 2022 | 10:06 AM IST
Congress accuses Centre of treating party leaders like 'terrorists'

2 min read Last Updated : Aug 04 2022 | 08:06 AM IST
Delhi: ED seals premises of Young Indian company in National Herald office

3 min read Last Updated : Aug 03 2022 | 8:25 PM IST
ED has become 'weapon of mass destruction': Congress MP Karti Chidambaram

2 min read Last Updated : Aug 02 2022 | 6:30 PM IST
ED raids Cong-owned National Herald office, dozen other locations in Delhi

4 min read Last Updated : Aug 02 2022 | 10:10 PM IST
National Herald case: Sonia questioned by ED for 3rd time, chargesheet soon

6 min read Last Updated : Jul 28 2022 | 02:14 AM IST
National Herald case: Sonia leaves ED office after 3 hours of questioning

1 min read Last Updated : Jul 27 2022 | 3:51 PM IST
'Ailing Sonia being harassed': Congress on day-3 of ED questioning

1 min read Last Updated : Jul 27 2022 | 1:44 PM IST
Govt wants Oppn-free India: Cong protests agencies misuse, MPs suspension

2 min read Last Updated : Jul 27 2022 | 1:18 PM IST
National Herald case: ED records Sonia Gandhi's statement on third day

3 min read Last Updated : Jul 27 2022 | 12:54 PM IST
Sonia Gandhi's questioning by ED: Congress workers detained in Mumbai

2 min read Last Updated : Jul 27 2022 | 12:10 PM IST