Gandhis in Rs 5,000 cr scandal? National Herald case explodes again
New Delhi: Long buried beneath decades of post-independence political debate, the National Herald case has returned to the national spotlight, with the Enforcement Directorate (ED) accusing Congress leaders Sonia Gandhi and Rahul Gandhi of orchestrating a covert operation to divert assets valued at Rs 5,000 crore.
The Bharatiya Janata Party (BJP) has called the alleged scheme a ‘textbook example’ of corruption, entitlement, and dynastic abuse of power tied to the Congress legacy.
Letters from Patel raise historical alarms
The roots of the controversy go beyond recent developments. In 1950, then-Deputy Prime Minister Sardar Vallabhbhai Patel raised concerns in a series of letters to Prime Minister Jawaharlal Nehru, now archived in Sardar Patel’s Correspondence. Patel cautioned Nehru about the misuse of the National Herald newspaper for questionable fundraising practices.
Patel specifically criticised a Rs 75,000 donation to the Herald from associates of Himalayan Airways, a company that had recently secured a government contract over objections from the Indian Air Force. One donor, identified as Akhani, was reportedly facing charges of bank fraud. Patel also named Union Minister Ahmed Kidwai, accusing him of soliciting funds from businessmen such as J.P. Srivastava in Lucknow.
Nehru, in a response dated May 5, 1950, distanced himself from the financial management of the Herald, referring queries to Feroze Gandhi, his son-in-law and then-general manager of the publication.
A day later, Patel replied, insisting that the funds in question were not charitable contributions but payments from private companies with vested interests. “There is no element of charity in them,” Patel wrote. Nehru again deflected, calling the issue one of “loss and profit,” rather than ethics or political accountability.
Young Indian Ltd. under scrutiny
In the current investigation, the ED alleges that Sonia Gandhi and Rahul Gandhi, through their control of Young Indian Ltd., used legal and financial loopholes to assume ownership of the defunct National Herald. The agency contends this was not a routine business decision but a strategic move to acquire valuable real estate and assets under the guise of a corporate revival.
Swamy’s legal push and BJP’s political narrative
The case was first initiated by BJP leader Subramanian Swamy, who has long accused the Gandhis of leading a “systematic conspiracy” to misappropriate public assets. His claims support the BJP’s broader argument that the Congress Party has operated more as a family-run entity than a public institution.
Congress leaders have denied the allegations, calling the ED’s investigation politically motivated and part of a campaign to discredit the party’s leadership.
Still, the combination of the ED’s findings and Patel’s early warnings has energized critics who say Congress has failed to break from its dynastic past.
A party under scrutiny
Beyond legal implications, the case has become a referendum on the Congress Party’s moral and political legacy. By invoking Patel’s concerns, the BJP is positioning the National Herald case as emblematic of deeper issues — the erosion of institutional ethics, the prioritisation of family interests over national duty, and a deviation from the principles envisioned by India’s founding leaders.
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