The Directorate of Enforcement (ED) has filed a chargesheet against Sonia Gandhi and Rahul Gandhi in connection with its investigation into alleged money laundering in the National Herald case. The chargesheet was filed in a special court on April 9. The court has posted the matter for April 25. Almost six years ago, in May 2019, the ED had attached a plot of land in Panchkula that had been re-allotted to Associated Journals Limited (AJL), the publisher of the newspaper National Herald, by the Congress government of Bhupinder Singh Hooda. According to the ED, 99% of AJL’s shares were transferred to a private firm called Young Indian for “a mere Rs 50 lakh”, even though the value of AJL’s properties, including the Panchkula plot, exceeds Rs 2,000 crore. Sonia Gandhi and Rahul Gandhi hold 38% each in Young Indian, a Section 25 company (defined as a not-for-profit charitable company under The Companies Act, 1956). The remaining 24% was held jointly by the late Congress leaders Motilal Vora and Oscar Fernandes. The chargesheet has described Vora and Fernandes as “close associates” of the Gandhis. Both Sonia and Rahul were questioned in 2022 as part of the ED’s investigation. AJL was established by Pandit Jawaharlal Nehru in 1937. Over the years, the office bearers of AJL have included loyalists of the Nehru-Gandhi family — apart from Vora and Fernandes, Bhupinder Hooda’s son Deepender Singh Hooda, Sam Pitroda, Dipakbhai Ratilal Babaria, and Suman Dubey. The story of the plot The 3,360-sq-metre plot is located opposite the Haryana Police headquarters in Panchkula’s Sector 6. It is an upscale neighbourhood packed with large homes, a government hospital, and offices of the Haryana Shahri Vikas Pradhikaran (formerly known as Haryana Urban Development Authority or HUDA), Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) Ltd, the State Marketing Board, the Forest Department, etc. The plot was originally allotted to AJL in 1982 when Bhajan Lal was Chief Minister. HUDA resumed it in 1996, when Bansi Lal, also of the Congress, was Chief Minister. This was because AJL had failed to build on the plot within the stipulated time. AJL tried and exhausted all legal remedies, but failed to reclaim the land. The plot was re-allocated to AJL by Hooda in 2005, within six months of his becoming Chief Minister of Haryana. This was done merely on a representation by Vora, who was chairman and managing director of AJL at the time. The plot was “resumed” to AJL for just Rs 69.39 lakh — at the same rate that applied at the time of the original allotment 23 years previously (Rs 59.3 lakh), plus interest. According to the ED, the market price of the plot at that time was around Rs 64.93 crore. On August 14, 2014, barely two months before the Assembly election in Haryana, an Occupation Certificate was issued to a four-storey building that had come up on the plot, according to HUDA records. The plot is categorised as a “government office” in HUDA’s records. The role of Hooda According to records accessed by The Indian Express, then Chief Minister Hooda allegedly overruled the Haryana Legal Department and used his “discretion” to re-allot the plot to AJL on old rates. A note dated August 17, 2005, signed on behalf of the then Legal Remembrancer (LR), Haryana, says: “The revision petition (by AJL) having been dismissed way back on 10.10.1996, the order of resumption has attained finality. There can thus be no question of re-allotment or restoration of the plot to the same allottee. If, however, the provision or the policy allow, fresh allotment at prevalent rates can be made as per the procedure for allotment of institutional sites.” The Legal Department’s note was endorsed by the then Chief Administrator of HUDA, and forwarded it to the Chief Minister’s Office on August 18, 2005. Hooda rejected the advice of the Legal Department and the HUDA Chief Administrator. On August 28, 2005, the CM wrote: “Shri Motilal Vora, Chairman, Associated Journals Limited (AJL) vide letter dated 29.6.2005 has represented to me that the organisation was not able to undertake construction of building within the stipulated period due to financial crunch. They had requested HUDA authorities for extension of time. HUDA authorities, however, did not accede to their request and cancelled the allotment… Shri Vora has requested that allotment of this plot be restored to the AJL.” Hooda added that the “order of resumption is a last resort”, and that “in my view, this was a fit case for grant of further extension in time for construction”. He argued that AJL was a “renowned organisation” founded by Nehru, and that the Hindi Daily Navjivan, which it planned to start, would “serve huge public interest”. “I, therefore, order that plot No. C-17, Sector-6, Panchkula be re-allotted to M/s Associated Journals Limited at original rates plus interest thereon till date. This re-allotment will be subject to the condition that the AJL would start construction in the next six months and complete the same in a period of two years,” Hooda wrote. The investigation Manohar Lal Khattar of the BJP took oath as Chief Minister on October 26, 2014. In May 2016, the Haryana government ordered an investigation by the Vigilance Bureau into the alleged irregularities in the re-allotment of the plot to AJL. The Vigilance Bureau registered a case against Hooda and others. In June 2016, the ED registered a money-laundering case against Hooda for causing loss to the government exchequer by re-allotting the plot to AJL. Based on the State Vigilance Bureau’s report, Chief Minister Khattar ordered that the case be handed over to the CBI for a further and thorough investigation. After conducting a Preliminary Enquiry (PE), the CBI in April 2017 registered a Regular Case (RC), and booked Hooda and others on charges of criminal conspiracy, criminal breach of trust, cheating, and misuse of official position by a public servant. The FIR did not mention Hooda by name; only as chairman of HUDA, a position he held at the time of re-allotment. The Chief Administrator and Administrator, HUDA, Financial Commissioner, Town and Country Planning Department, and M/s Associated Journals Limited, the beneficiary of the re-allotment, were named in the FIR. In December 2018, CBI filed a detailed chargesheet in the case accusing Hooda, Vora, and AJL of corruption, cheating, and criminal conspiracy. Vora passed away on December 21, 2020, during the Covid-19 pandemic. Hooda is currently on bail in that case. In April 2021, the CBI court rejected Hooda’s plea for “discharge” in the case. The court framed charges against him under sections relating to cheating and criminal conspiracy of the Indian Penal Code, and under Section 13(1)(d) of the Prevention of Corruption Act. The ED’s investigation was ongoing parallelly at the time. Hooda challenged the proceedings in the CBI trial court before the Punjab and Haryana High Court. Two months later, in July 2021, the HC stayed the proceedings of the CBI trial court. On the basis of the HC’s order, the ED court also stayed the framing of charges against Hooda in April 2022. The ED has challenged this in the Punjab and Haryana High Court. That case is pending.
