ED initiates possession proceedings of Rs 661-crore assets in AJL case linked to Congress

New Delhi: In a significant move in the AJL case linked to Congress, the Enforcement Directorate (ED) has served notices to property registrars in Delhi, Mumbai, and Lucknow to take possession of assets worth Rs 661 crore.

The ED served notices to property registrars in the three cities in connection with properties of Associated Journals Ltd (AJL) on April 11, in accordance with Section 8 of the Prevention of Money Laundering Act (PMLA), 2002, and Rule 5(1) of the associated rules.

“As part of the process to take possession of the tainted properties in the Associated Journals Limited (AJL) money laundering case, the Directorate of Enforcement (ED) in compliance with Section 8 of PMLA, 2002 and Rule 5(1) of the Prevention of Money Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013, on April 11 has served notices to Registrars of property in Delhi, Mumbai and Lucknow having jurisdiction of the area where AJL properties are located,” ED said in a release.

It said a notice under Rule 5(3) has been issued to Jindal South West Projects Limited, the occupant of the 7th, 8th, and 9th floors of Herald House in Bandra (E) Mumbai. “The company has been directed to transfer monthly rent payments to the Director of the Enforcement Directorate,” the agency said.

ED said these properties were attached after extensive investigation which revealed “signification generation, possession and use of proceeds of crime to the tune of Rs 988 crores”.

“Therefore, to secure the proceeds of crime and to prevent the accused form dissipating the same, the immovable properties of AJL located at Delhi, Mumbai and Lucknow valued at Rs 661 crores along-with the shares of AJL valued at Rs 90.2 crores were attached by issuing provisional attachment order (PAO) dated November 20, 2023 by the Directorate of Enforcement and the same has been confirmed by the Ld. Adjudicating Authority on April 10, 2024,” the agency said.

The proceedings against the accused have been challenged but courts have allowed the investigation to proceed.

The ED has conducted searches and seizures at multiple locations, “uncovering incriminating documents linked to the alleged money laundering activities”.

Sources said the investigation under PMLA 2002 has revealed that Young Indian, a private company owned by Sonia Gandhi and Rahul Gandhi, acquired AJL properties worth Rs 2000 crores for a mere Rs 50 Lakh, significantly undervaluing its worth.

They said findings from the ED also indicate that Young Indian and AJL properties were used “for generation of further Proceeds of Crime in the form of bogus donations to the tune of Rs 18 crore, bogus advance rent to the tune of Rs 38 crore and bogus advertisements of Rs 29 crore”.

The sources said that to stop the further generation, utilization and enjoyment of the proceeds of crime and in compliance with Section 8 of PMLA 2002 and Prevention of Money Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013, the Directorate of Enforcement “has initiated the proceedings to take possession of the tainted properties”.