Delhi Court Rejects ED Complaint Against Rahul, Sonia Gandhi in National Herald Case
A Delhi court has refused to take cognisance of the Enforcement Directorate’s (ED) money laundering complaint in the National Herald case involving Congress leaders Rahul Gandhi and Sonia Gandhi.
The order was passed by Special Judge Vishal Gogne of the Rouse Avenue Courts on Tuesday. The court held that the prosecution complaint filed by the ED was not legally maintainable because it was not based on an FIR for a scheduled offence under the Prevention of Money Laundering Act (PMLA).
The court observed that the ED’s money laundering case was founded on a cognisance and summoning order passed in a private complaint filed by Dr Subramanian Swamy under Section 200 of the Criminal Procedure Code (CrPC), and not on an FIR. As per the court, an FIR relating to a scheduled offence is a necessary requirement for initiating proceedings under the PMLA.
While delivering the order, the judge also noted that the Economic Offences Wing of the Delhi Police has already registered an FIR in the matter. In view of this, the court said it would be premature to examine the ED’s arguments on merits at this stage.
The court clearly ruled that an investigation and prosecution for money laundering under Sections 3 and 4 of the PMLA cannot continue in the absence of an FIR relating to a scheduled offence. On this basis, the ED’s complaint was dismissed.
The ED had filed a fresh prosecution complaint against Rahul Gandhi and Sonia Gandhi under Sections 44 and 45 of the PMLA, alleging the commission of money laundering offences. The case relates to the acquisition of Associated Journals Limited (AJL), the publisher of the now-defunct National Herald newspaper.
In 2010, a newly incorporated company, Young Indian Private Limited (YIL), acquired AJL’s debts from the Indian National Congress for ₹50 lakh. Later, YIL gained control over AJL’s assets, which were estimated to be worth over ₹2,000 crore. Sonia Gandhi and Rahul Gandhi held a majority stake in YIL, leading to allegations that party funds were used to take control of AJL’s valuable properties.
The ED began its investigation in 2014, examining the financial transactions between the Congress party, AJL, and YIL. The agency has alleged that the Gandhis and other Congress leaders were involved in misappropriating AJL’s assets.
Recently, the ED also initiated steps to take possession of AJL-linked properties valued at around ₹661 crore under the provisions of the PMLA.
