National Herald Case Explained: The Congress, A Newspaper, And That Rs 90 Crore Loan
The National Herald, founded by Jawaharlal Nehru and other freedom fighters in 1938, was a newspaper owned and published by Associated Journals Limited, or AJL.

An Enforcement Directorate chargesheet against Sonia and Rahul Gandhi - in the Rs 2,000 crore National Herald case - has re-opened this can of worms for the Congress.
The chargesheet also names the Congress' overseas unit chief, Sam Pitroda, among other party figures, and the first hearing into the charges will be held on April 25. If the court decides to proceed with the charges, Mrs Gandhi, Mr Gandhi, and others must appear before it.
This the first time a chargesheet has been filed against the two senior leaders in the National Herald case, which the BJP called a "money-minting exercise" and the Congress a "conspiracy".
Picked up as another tool with which to attack its rival, the BJP fired barbs Tuesday afternoon, alleging the Congress had hatched a scam to put money in the Gandhis' hands.
The Congress - also battling a fresh round of allegations against Robert Vadra, party MP Priyanka Gandhi Vadra's husband - countered by declaring the National Herald case charges, in which "no exchange of funds took place... shows (Prime Minister) Narendra Modi's fear".
What Is The National Herald?
The National Herald, founded by Jawaharlal Nehru and other freedom fighters in 1938, was a newspaper owned and published by Associated Journals Limited, or AJL.
The newspaper - regarded as the Congress' mouthpiece - went offline in 2008 with debts of Rs 90.21 crore, but it retained real estate assets then worth an estimated Rs 2,000 crore.
These, the ED has claimed, are now worth Rs 5,000 crore.
What Is The National Herald Case?
In November 2012 the BJP's Subramanian Swamy filed a private complaint alleging Mrs Gandhi, Mr Gandhi, and other senior Congress leaders had fraudulently taken over AJL; he claimed the Congress leaders had taken over the Rs 2,000 crore in properties for a mere Rs 50 lakh.
These properties include the Herald House in Delhi and properties in Mumbai's Bandra and on Lucknow's Bisheshwar Nath Road, all of which have been seized by the probe agency.
These alone are worth, reportedly, a combined Rs 661 crore.
There are also allegations AJL had been using these properties - given by the union government of the time to only to run its newspaper operations - for commercial purposes.

The Herald House in central Delhi is a landmark building and the paper's HQ (File).
In other words, AJL had allegedly been getting rent worth lakhs of rupees.
These 'proceeds of crime', are worth Rs 998 crore, the ED has claimed.
In 2018 the union government terminated the lease and sought to evict AJL from Herald House, arguing no news publication was being done. But the Supreme Court later ordered a stay.
How Did National Herald 'Scam' Happen?
The specific allegation is the Gandhi family used a second company - Young Indian Limited.
According to the ED, in 2010 the Congress extended an interest-free loan of Rs 90.25 crore to help AJL repay debts. YIL, the agency said, was set up at as a not-for-profit later that year.
A month later YIL 'acquired' 99 per cent of AJL's shares.
This was done, allegedly, by the Congress classifying the AJL loan as 'non-recoverable' and then 'selling' it, for Rs 50 lakh, to the newly-incorporated YIL. The sale, Mr Swamy alleged, went through despite YIL having no apparent source of income to pay that Rs 50 lakh.
Instead, he claimed, the company demanded allotment of Associated Journals equity and AJL then passed a resolution to increase share capital and issue fresh shares to Young Indian.
"With this fresh allotment of shares, shareholding of more than 1,000 shareholders was reduced to a mere one per cent and AJL became a subsidiary company of YIL. YI also took control over properties of AJL," the agency had said.

Congress MP Rahul Gandhi at the re-launch of the National Herald newspaper.
These transactions are what the ED is investigating, alleging that the purpose was to illegally take control of AJL assets and, therefore, generate 'further proceeds of crime'.
Sonia Gandhi and Rahul Gandhi each own 38 per cent of YIL.
The ED and the Congress' critics have also pointed out that YIL, though registered, as a charitable organisation, had not, at least in public, engaged in such activities.
Overall, Mr Swamy has alleged, as party colleague Ravi Shankar Prasad did today, that it is illegal for a political party to lend money for commercial purposes.
Legal challenges in this case are currently pending before the Supreme Court.
Should they be found guilty, Mrs Gandhi and Mr Gandhi could each get seven-year terms.
Congress On National Herald Case
The Congress, in defending the Gandhi family and itself, has pointed out that YIL's incorporation as a 'not-for-profit' means none could financially benefit after it acquired AJL's assets.
And, it has also argued, the Rs 90 crore loan was obviously meant to clear debts and revive the National Herald rather than profit from real estate 'investments'.
The Congress has also condemned the ED's actions against Sonia Gandhi and Rahul Gandhi.
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