National Herald case: Delhi court rejects ED's complaint against Gandhis

The case stems from a private complaint by former Union minister Subramanian Swamy, who accused Sonia Gandhi, Rahul Gandhi, and Young Indian of cheating, criminal conspiracy

In a major relief for Congress leaders Rahul Gandhi and Sonia Gandhi, a Delhi court on Tuesday declined to take cognisance of the complaint filed by the Enforcement Directorate (ED) in the National Herald money laundering case, Bar and Bench reported.

 

Special Judge (PC Act) Vishal Gogne of the Rouse Avenue Court said the ED’s complaint under the Prevention of Money Laundering Act (PMLA) was not maintainable, as it was founded on a private complaint rather than a first information report (FIR). He further added that Rahul Gandhi, Sonia Gandhi, and others mentioned in the case are not entitled to a copy of the FIR.

 

The court, while dismissing the ED's complaint, observed, "An investigation and the consequent prosecution complaint pertaining to the offence of money laundering defined under Section 3 and punishable under Section 4 is not maintainable in the absence of a FIR or the offence mentioned in the Schedule to the Act."

 

Apart from Rahul and Sonia Gandhi, the court also granted relief to five others, which included Suman Dubey, Sam Pitroda, Young Indian, Dotex Merchandise, and Sunil Bhandari.

ED's case against Gandhis

 

The Enforcement Directorate, in its complaint, alleged that the “proceeds of crime” were laundered through what it describes as a fraudulent takeover of Associated Journals Limited (AJL) properties, the publisher of the National Herald, valued at over ₹2,000 crore, by a company named Young Indian. Gandhis are the majority shareholders of the firm.

 

According to the agency, AJL’s shares were transferred to Young Indian as part of a criminal conspiracy aimed at unlawfully acquiring the company’s assets. The agency further said the value of the shares, AJL’s immovable properties and the rental income earned from them constitute the alleged proceeds of crime.

Gandhis' response to the ED case

 

However, the Gandhis called it a strange and unprecedented case where money laundering allegations were made without the use or the projection of the property.

 

According to the report, during the hearings, Rahul Gandhi and Sonia Gandhi refuted allegations levelled by the Enforcement Directorate that Young Indian was used to seize AJL's assets in exchange for a loan. Further, they argued that the loan was to make AJL debt-free.

National Herald case

 

The case stems from a private complaint by former Union minister Subramanian Swamy, who accused Sonia Gandhi and Rahul Gandhi, Motilal Vora, Oscar Fernandes, Suman Dubey, Sam Pitroda, and the Gandhi family-controlled Young Indian of cheating, criminal conspiracy, misappropriation of property, and criminal breach of trust. A prosecution complaint against the Gandhis and Pitodra was filed by the ED on April 15 this year.

 

Earlier this month, Congress President Mallikarjun Kharge slammed the central government after a fresh FIR was filed in connection with the National Herald case. Kharge said he was confident that the judiciary will see through this "political vendetta and mindless attempts to hound".