Indian opposition leader Rahul Gandhi quizzed in money-laundering case

He and his mother Sonia are accused of corruption and misappropriation of funds worth 20 billion rupees

Indian National Congress leader Rahul Gandhi, and his sister Priyanka Gandhi Vadra, general secretary of the All India Congress Committee in charge of Uttar Pradesh, arrive at Congress headquarters in New Delhi. EPAShow less

India’s main opposition Congress Party leader Rahul Gandhi was on Monday questioned by the federal financial fraud agency over a multi-billion-rupee alleged money-laundering case.

Mr Gandhi, 51, and his mother, Indian National Congress party president Sonia Gandhi, are accused of corruption and misappropriation of funds worth 20 billion rupees while acquiring a company called Associated Journals Limited.

AJL published the National Herald newspaper — founded by Mr Gandhi’s great-grandfather and India’s first Prime Minister Jawaharlal Nehru — along with 5,000 freedom fighters as its stakeholders in 1938.

Prime Minister Narendra Modi’s Bharatiya Janata Party leader, Subramanian Swamy, filed a complaint against Mr Gandhi and his mother in 2012. This was over forming a shell company and illegally taking control of the AJL assets through the non-profit Young India Limited.

The firm was established in 2010, a year after the Congress-led alliance won the national elections, with Mr Gandhi as its director.

The Gandhis owned 76 per cent of Young India Limited and the remaining 24 per cent was owned by Congress leaders Motilal Vora and Oscar Fernandes.

The National Herald was a leading English daily until independence in 1947, after which it became a mouthpiece of Congress. The AJL also published two newspapers in Hindi and Urdu until 2008, when it was shut down due to losses.

Mr Swamy filed a follow-up case in different courts, which prima facie found irregularities in the deal, but the Gandhis secured an anticipatory bail in 2015.

But last month, the federal enforcement directorate summoned the mother-son duo for questioning to investigate the company’s shareholding pattern, financial transactions, and role of the Congress leaders.

A supporter of India's Congress Party shouts slogans after being detained by police while protesting against the summoning of his party leader Rahul Gandhi by the enforcement directorate for questioning in connection with the National Herald money laundering case, in Ahmedabad. AFP

While Ms Gandhi did not appear before the investigators as she was in hospital with Covid-19, her son marched to the office of the central agency on Monday morning with his sister Priyanka Gandhi Vadra and hundreds of his supporters.

He was quizzed for nine hours.

Mr Gandhi was questioned over allegations of financial irregularities, while police detained scores of his supporters across parts of the capital city.

Police used water cannons and bundled up many supporters into waiting buses.

Some leaders were also reportedly manhandled.

But party workers continued a nationwide protest as a show of strength, while accusing Mr Modi of pursuing vendetta politics.

“This is nothing but politics," Mallikarjun Kharge, a party leader, said. "We condemn this…had there been a legal point in this case, it would not have taken eight years for action. This is their method to harass people, but we will not be scared. We will continue to fight."