Special judge Vishal Gogne examined the chargesheet, which was filed on April 9, on the point of cognisance and posted the matter for further proceedings on April 25.
CNN-News18 has exclusively accessed details of the ED investigation and the chargesheet.
According to this, the ED investigation in this case stems from the cognisance taking order dated 26.06.2014 passed by Ld. Metropolitan Magistrate-02 (MM-02), Patiala House Courts, New Delhi, on a private complaint filed by Subramanian Swamy in 2013 against Sonia Gandhi, Rahul Gandhi, Motilal Vohra, Oscar Fernandes, Suman Dubey, Sam Pitroda, and M/s Young Indian, alleging commission of offences under section 403, 406 & 420 r/w sec 120(B) of IPC, 1860.
This cognisance order was challenged by the accused persons before the Delhi High Court and then the Supreme Court of India. However, both courts declined to interfere with the trial process.
The main allegation, inter alia, is that, in the year 2010, the principal officers of Associated Journals Limited (AJL), Young Indian (YI), and key office bearers of All India Congress Committee (AICC) orchestrated a criminal conspiracy to usurp the properties worth ₹2,000 crore (approx.) of AJL (a public unlisted company), by transferring 99% of the shares in favour of Young Indian, a private company, for just ₹50 lakh, wherein Sonia Gandhi and Rahul Gandhi together held 76% of the shares.
The accused persons, by entering into a criminal conspiracy, converted the outstanding loan of ₹90.21 crore given by AICC to AJL into 9.02 crore equity shares and transferred all these shares in favour of Young Indian for only ₹50 lakh, says ED. By transferring the majority shareholding of AJL to YI, the accused effectively transferred the beneficial ownership of all properties of AJL, worth thousands of crores, to Sonia Gandhi and Rahul Gandhi.
The investigation allegedly reveals that Young Indian was effectively controlled by Rahul Gandhi and Sonia Gandhi since they together held 76% of the shares through a well-thought-out conspiracy. The balance shares of 24% were also held together by the late Motilal Vohra and the late Oscar Fernandes, who were close associates of Sonia Gandhi and Rahul Gandhi.
Though Young Indian was incorporated under Section 25 Company (not-for-profit company/charitable purpose), the investigation revealed that there was no such charitable activity in the company and there were no expenses towards its declared charitable activities during the several years of its existence, says the ED.
Further, it says, since the offence of money laundering into generation, possession and use of proceeds of crime in the form of shares and immovable properties of AJL worth thousands of crores, therefore, to secure the proceeds of crime, properties of AJL valued at ₹752 crore (approx) have been attached by issuing provisional attachment order dated 20.11.2023 by the Directorate of Enforcement and this has been confirmed by the Ld. Adjudicating Authority.
Independent findings of the investigation conducted by the ED under PMLA are also supported by the Income Tax Department’s Assessment Order dated 27.12.2017 in the case of Young Indian for AY 2010-11, says the agency. In the year 2017, the I-T department allegedly found a huge tax violation of more than ₹414 crore in the hands of Young Indian by illegally acquiring the properties of AJL. It is mentioned in the Assessment Order dated 27.12.2017, that important office bearers of AICC (namely Sonia Gandhi, Rahul Gandhi, Motilal Vora, and Oscar Fernandes) and AJL (namely Motilal Vora and Oscar Fernandes) have devised the scheme involving pre-ordinate artificial and fraudulent steps to take over AJL.
The objective of the scheme was allegedly two-fold: one, to obtain valuable benefits embodied in business assets of the AJL and not to pay any tax on business income of earning such benefit. This assessment order was challenged by Young Indian, and a reassessment was done, showing an income of ₹398 crores in the hands of Young Indian.
YI was incorporated as an SPV on 23.11.2010. AJL closed its publishing activity in 2008 and owned properties worth hundreds of crores of rupees.
A criminal conspiracy was hatched by the accused to give control of properties worth hundreds of crores of AJL to the beneficial owners of YI, i.e., Sonia Gandhi and Rahul Gandhi, the ED says.
YI asked AJL to repay the loan of ₹90.21 crore assigned to it by AICC or convert this loan into equity. The appointment of the same set of people took place in AJL, YI, and AICC. A loan of ₹90.21 crore was assigned to YI for a paltry sum of ₹50 lakh by passing resolutions by the same set of people holding positions in these three entities, says the probe agency.
AJL called an EGM to increase the authorised capital and to convert the loan of YI into equity. YI was allotted 9.021 crore shares of AJL, the ED alleges.
The EGM was attended by the same set of people, and a resolution was passed to increase the authorised share capital of AJL and to convert the loan of YI into equity.
YI allegedly became the holding company of AJL, holding 99% of the shares, and the equity of other shareholders dropped to 1%.
According to the investigation, under the criminal conspiracy executed, the control of assets of AJL worth hundreds of crores of rupees was transferred to beneficial owners of YI.
Based on extensive investigation, including collection of multiple documentary evidences, recording of statements of the accused and witnesses, and money trail, the ED on 09.04.2025 filed a chargesheet (prosecution complaint) under PMLA, 2002, against the following accused for the offence of money laundering involving proceeds of crime of current market value of more than ₹5,000 crore.
a. Smt. Sonia Gandhi, as Accused No. 1.
b. Sri Rahul Gandhi, as Accused No. 2.
c. Sri Suman Dubey, as Accused No. 3.
d. Sri Sam Pitroda, as Accused No. 4.
e. M/s Young India, as Accused No. 5.
f. M/s Dotex Merchandise Pvt Ltd, as Accused No. 6.
g. Sri Sunil Bhandari, as Accused No. 7.
The next date of hearing on the taking of cognisance of the ED chargesheet is scheduled on 25.04.2025.
