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synopsis
A series of letters indicate that Patel cautioned Nehru about “the potential misuse of government influence in financial dealings” and advised against accepting contributions from “questionable” sources.
A series of letters exchanged between Sardar Vallabhbhai Patel and Jawaharlal Nehru in May 1950, as documented in the book Sardar Patel’s Correspondence, suggest that Patel expressed concerns to Nehru regarding the use of the ‘National Herald’ for fundraising purposes. These letters indicate that Patel cautioned Nehru about “the potential misuse of government influence in financial dealings” and advised against accepting contributions from “questionable” sources.
The recent chargesheet filed by the Enforcement Directorate (ED) against Sonia and Rahul Gandhi in connection with the National Herald case has reignited a political firestorm—this time, with Sardar Vallabhbhai Patel’s decades-old letters at its epicenter.
The ED has accused the Congress leaders of orchestrating a “criminal conspiracy” to acquire properties worth Rs 2,000 crore belonging to Associated Journals Ltd (AJL), the publisher of the National Herald. But long before these accusations surfaced, Patel had already voiced grave concerns about questionable fundraising tactics and political misuse surrounding the paper.
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Patel's alarm in 1950, Nehru's ‘dismissal’
Patel, a statesman renowned for his integrity and foresight, had warned Nehru in no uncertain terms about the “misuse” of government apparatus to support the newspaper and the murky origins of its funding. His discomfort was palpable, but his caution, tragically, was brushed aside.
On May 5, 1950, Patel raised the alarm in a letter to Nehru, expressing deep unease over a Rs 75,000 donation from individuals connected with Himalayan Airways—an airline that had allegedly secured a government contract by bypassing objections from the Indian Air Force. One donor, Akhani, was already under scrutiny for bank fraud. Worse still, Patel accused Union Minister Ahmed Kidwai of misusing his official standing to solicit funds from dubious businessmen like J.P. Srivastava in Lucknow.
Patel’s warnings were explicit and uncompromising. His words carried the weight of someone deeply troubled by a creeping rot within the system. But Nehru’s response, sent the very same day, was “vague and dismissive”—an attempt to downplay the issue by referring it to his son-in-law, Feroze Gandhi, then General Manager of the Herald.
Patel wasn’t buying it.
He responded on May 6, doubling down with meticulous details. “Some contributions did not come from those involved in running the department... There is no element of charity in them,” he wrote, clearly distinguishing these transactions as politically motivated and ethically questionable. Patel’s tone was that of a man who saw through the façade.
Still, Nehru sidestepped. He insisted that he had distanced himself from the National Herald and its finances for years, shifting responsibility to a woman named Mridula. He admitted “some mistakes may have occurred” but tried to frame the issue as a business matter—“a question of loss and profit,” not a betrayal of ethical principles.
BJP spokesperson Sudhanshu Trivedi pounced on this revelation, citing Nehru’s May 6 letter in which he wrote, “Herald is a good business proposition and its preference shares and debentures are not a bad investment.” Trivedi argued that this showed clear intent—that the project was commercial from the beginning, not philanthropic. “Today, the Congress party should be asked this ethical question: when this was always a business plan, how can it suddenly be linked to charity or donations given during the freedom struggle?" he asked.
But the final blow came on May 10.
In what would be his last word on the matter, Patel made it abundantly clear that the issue was no longer just financial. It was about morality, transparency, and the very character of public life. He minced no words: “In light of these events, I do not think there is any benefit in pursuing this matter further... I would not accept this situation.” The disillusionment was stark, and complete.
Trivedi interpreted this as Patel’s final break with what he saw as an unethical enterprise. “Now, Congress should explain what kind of sacrifice and dedication this was,” he demanded.
Political analysts believe that Patel’s unwavering stand laid bare a deeper, more systemic malaise—a culture of entitlement, selective ethics, and political privilege that may have taken root far earlier than acknowledged. His letters, ignored in their time, now ring with eerie foresight.
National Herald Case: Congress faces the heat
ED has filed a chargesheet against Congress MP Rahul Gandhi, Sonia Gandhi, and Overseas Congress chief Sam Pitroda in the National Herald money laundering case in Delhi's Rouse Avenue Court. The ED's chargesheet also includes the names of Suman Dubey and others, and a hearing is scheduled for today (April 25).
BJP leader Subramanian Swamy filed a petition in the trial court in 2012, alleging that some Congress leaders had wrongly acquired Associated Journals Limited (AJL) through Young Indian Limited (YIL). He alleged that everything was done to gain control of the 2,000 crore Herald House building on Bahadur Shah Zafar Marg in Delhi. In addition, Young Indian Limited was given the right to the assets of Associated Journals Limited.
The National Herald was founded by Jawaharlal Nehru along with freedom fighters in 1938. Associated Journals Limited is the company that owns the National Herald newspaper. On February 26, 2011, Congress took responsibility for its debt of 90 crore rupees. This meant that the party had given them a loan of 90 crores. After this, Young Indian Company was established with the help of Rs 5 lakh. Sonia Gandhi and Rahul Gandhi have a 38-38 per cent stake in this. The other 4 per cent stake was held by Congress leaders Motilal Vora and Oscar Fernandes.
Young Indian gets ownership of AJL
After this, a total of 9 crore shares of AJL of Rs 10 each were given to Young Indian. In return, Young Indian had to repay the Congress loan. With 9 crore shares, Young Indian got 99 per cent shares of this company. After this, the Congress party also waived the loan of 90 crores. Young Indian Limited was started in 2010. Rahul Gandhi was the General Secretary of the Congress party at that time and he became the director of this company.
The ED has claimed that assets worth more than 2,000 crores of AJL were taken over through YIL. The agency has also alleged that money laundering of Rs 988 crore has been done in this. The investigation has also revealed that Associated Journals Limited has immovable properties worth Rs 661.69 crore in several cities of India including Delhi, Mumbai and Lucknow, which were acquired through criminal money.
The investigation, which began in 2021, is based on a complaint filed by BJP leader Subramanian Swamy. It alleged that the Congress leadership had acquired AJL's assets through YIL for just Rs 50 lakh. During the investigation, the ED claimed that they had found documents showing other financial irregularities, including an increase in fake donations, advance rent and advertising revenue.
In April 2022, Congress leader Mallikarjun Kharge reached the ED office to record his statement. After this, the ED also recorded the statement of Congress leader Pawan Bansal. The Congress party has consistently denied the allegations leveled by the ED. The party's contention is that the central government is trying to hide its failures by misusing the investigating agency. Apart from this, action is being taken by conspiring against the Congress leadership.
Congress's defense
The Congress argued that Associated Journals Limited, the company that runs the National Herald newspaper, which was established in 1937, had paid an amount of Rs 90 crore for the payment of its debt for almost 10 years and in 100 weekly checks. Out of this, 67 crores were used by National Herald for the payment of its employees. Other money was spent on electricity bills, rent, and building expenses. Giving a loan by a political party is not a crime and neither is it considered unauthorized.
The Congress made a second argument that the National Herald newspaper could not repay this loan due to lack of revenue. Instead, AJL's shares were given to Young Indian, which is a not-for-profit company under the law. The members of the managing committee of Young Indian, Sonia Gandhi, Rahul Gandhi cannot take any kind of profit, dividend, salary and any financial benefit. Not only this, the managing committee cannot sell the shares of Young Indian.
This means that no financial benefit can be taken from Young Indian's money. Apart from this, the shares cannot be sold.
