Court refuses to issue notices to Sonia, Rahul in National Herald case

The Rouse Avenue Court in Delhi asks ED to plug gaps and submit more evidence before next hearing on May 2 in the National Herald case

A Delhi court has refused to issue notices to Congress leaders Rahul Gandhi, Sonia Gandhi, and others in the National Herald money laundering case, directing the Enforcement Directorate (ED) to submit additional documents and address any deficiencies.

 

The ED had contended that under the law, cognizance of a prosecution complaint (chargesheet) cannot be taken without hearing the accused, and therefore, notices should be issued to the Gandhis and others, Bar and Bench reported.

 

However, Special Judge Vishal Gogne, presiding over the case under the Prevention of Corruption Act (PC Act) at the Rouse Avenue Court on Friday, emphasised that the court must be satisfied before issuing such notices. “I cannot pass such an order until satisfied,” he said.   

 

The case is scheduled for further hearing on May 2.

 

The National Herald case revolves around the transfer of a ₹90 crore loan from the Congress party to Associated Journals Ltd (AJL), the publisher of the National Herald, which was later transferred to Young Indian, a private company, for a consideration of ₹50 lakh. Allegations have been made regarding the misappropriation of assets exceeding ₹2,000 crore through an equity transaction.

 

The ED filed the prosecution complaint against the Gandhis, Congress leader Sam Pitroda, and others on April 15 this year.

 

What does the chargesheet say

 

Citing a 2017 Income Tax assessment, the ED has alleged that officials from the All India Congress Committee (AICC), along with key figures from Associated Journals Limited (AJL) and Young Indian, were part of a “criminal conspiracy” to acquire AJL’s assets, which are estimated to be worth around ₹2,000 crore.

 

According to the chargesheet, 99 per cent of AJL’s shares were transferred to Young Indian for just ₹50 lakh. Sonia and Rahul Gandhi are said to hold 38 per cent stake each in the company, with the rest divided between the late Motilal Vora and Oscar Fernandes, both described by the ED as close associates of the Gandhi family. 

 

  The agency has further claimed that a ₹90.21 crore loan given by AICC to AJL was converted into equity shares worth ₹9.02 crore. These shares were then acquired by Young Indian at a nominal cost, allegedly giving Sonia and Rahul effective control over AJL’s substantial real estate portfolio.

 

While the Congress party maintains that Young Indian is a not-for-profit company under Section 25 of the Companies Act, the ED contends that the entity did not engage in any charitable activities. The same Income Tax order has also been used by the ED to support its claim that Young Indian evaded over ₹414 crore in taxes by unlawfully acquiring AJL’s assets.

 

The case originated from a complaint filed by BJP leader Subramanian Swamy, which was acknowledged by a Delhi court in June 2014. The ED launched its formal investigation in 2021.