The Enforcement Directorate (ED) on Friday (December 19) approached the Delhi High Court, challenging a recent trial court ruling that declined to take cognisance of its money laundering complaint against Congress leaders Sonia Gandhi, Rahul Gandhi, and other accused in the long-running National Herald case.
In its petition before the High Court, the central probe agency has questioned the legal reasoning adopted by the trial court and sought an appellate review of the order refusing to proceed with its complaint filed under the Prevention of Money Laundering Act (PMLA). The ED has argued that the findings of the lower court warrant reconsideration and that its complaint deserves to be heard on merits.
Earlier this week, a Delhi court refused to take cognisance of the ED’s money laundering case against Sonia Gandhi, Rahul Gandhi, and five others. However, the court clarified that the agency was not barred from continuing its investigation in the matter.
The order was passed by Special Judge (PC Act) Vishal Gogne of the Rouse Avenue Courts, who set aside an earlier magistrate-level order related to the case. While dismissing the ED’s complaint at this stage, the judge observed that further submissions could be considered, especially in light of a fresh FIR registered by the Delhi Police in the matter.
“Complaint dismissed,” the court noted, while keeping the door open for future proceedings depending on the course of investigation and additional material placed on record.
The court also ruled that Sonia Gandhi, Rahul Gandhi and the other accused are not entitled to receive a copy of the FIR filed by the Delhi Police at this stage.
In its prosecution complaint, the ED has named Sonia Gandhi, Rahul Gandhi, Suman Dubey, Sam Pitroda, along with entities including Young Indian Private Limited, Dotex Merchandise, and businessman Sunil Bhandari as accused.
The agency has alleged that assets worth over Rs 2,000 crore belonging to Associated Journals Limited (AJL) were wrongfully taken over through a series of transactions that amounted to money laundering.
What is the National Herald case?
The National Herald case traces its origins to a private complaint filed in 2012 by BJP leader Subramanian Swamy. The case relates to the ownership and financial restructuring of National Herald, a newspaper founded in 1938 by Jawaharlal Nehru and published by Associated Journals Limited (AJL).
AJL later ceased publication and accumulated substantial losses and debt. According to the allegations, the Congress party had extended a loan of around Rs 90 crore to AJL. Subsequently, a newly formed company, Young Indian Private Limited, acquired control over AJL by taking over this debt.
Sonia Gandhi and Rahul Gandhi are shareholders in Young Indian, which brought the transaction under legal and political scrutiny. The complainant has alleged that the takeover was designed not to revive the newspaper but to gain control over AJL’s valuable real estate assets spread across several cities in India.
