National Herald Case: ED Moves Delhi HC Against Sonia, Rahul Gandhi Challenging Trial Court's Ruling

The Enforcement Directorate (ED) on Friday approached the Delhi High Court, challenging the trial court order that declined to take cognisance of the money laundering complaint against Congress leaders Sonia Gandhi, Rahul Gandhi, and others in the National Herald case.

In its petition, the probe agency has questioned the findings of the trial court and sought appellate review of the decision refusing to proceed with the agency’s complaint under the Prevention of Money Laundering Act (PMLA).

A Delhi Court on Tuesday refused to take cognisance of the ED’s money laundering case against Sonia Gandhi, Rahul Gandhi, and five others in the National Herald case. The court, however, said the central agency could continue its probe in the matter.

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Judge (PC Act) Vishal Gogne of the Rouse Avenue Courts set aside an order passed by a Magistrate court in this regard. He also ruled that Sonia Gandhi, Rahul Gandhi and the other accused are not entitled to receive a copy of the First Information Report (FIR) filed by the Delhi Police in the case.

“Complaint dismissed,” Gogne said, but noted that it may take further submissions in the case, as the Delhi Police has registered a fresh FIR.

The ED, in its chargesheet, had named Sonia Gandhi, Rahul Gandhi, Suman Dubey, Sam Pitroda, Young Indian, Dotex Merchandise and Sunil Bhandari as the main accused in the case.

It has been alleged that assets worth over Rs 2,000 crore belonging to Associated Journals Limited (AJL) were wrongfully taken over.

What’s The Case?

The National Herald case is a legal dispute linked to the ownership and finances of National Herald, a newspaper started in 1938 by India’s first Prime Minister Jawaharlal Nehru. The paper was run by a company called Associated Journals Limited (AJL), which later stopped publishing and accumulated heavy losses and debt. Years later, a new company called Young Indian Private Limited acquired control over AJL by taking over its debt. Senior Congress leaders Sonia Gandhi and Rahul Gandhi are shareholders in Young Indian, which brought the matter under legal and political scrutiny.

The petition in the National Herald case was filed by BJP leader Subramanian Swamy in 2012. The case mainly revolves around allegations that the takeover was done to gain control over valuable properties owned by AJL across India, rather than to revive the newspaper. Swamy filed a private complaint in court in 2012, accusing Sonia and Rahul Gandhi and others of wrongdoing connected to the takeover of AJL.

He alleged that AJL had a big loan (around Rs 90 crore) from the Congress party, and then a closely held company called Young Indian (majority owned by Sonia and Rahul Gandhi) took over almost all AJL’s shares and assets — claimed to be worth much more — in a way that was allegedly improper.