A Delhi court on Tuesday declined to take cognisance of the Enforcement Directorate’s money-laundering case against Sonia Gandhi, Rahul Gandhi, and five others in connection with the National Herald matter.
At the same time, the court clarified that the central agency is free to continue its investigation. The judge also ruled that Sonia Gandhi, Rahul Gandhi and the other accused are not entitled to receive a copy of the First Information Report filed by the Delhi Police in the case.
In its chargesheet, the ED has named Sonia Gandhi, Rahul Gandhi, Suman Dubey, Sam Pitroda, Young Indian Private Limited, Dotex Merchandise and Sunil Bhandari as the key accused. The agency has alleged that properties worth more than Rs 2,000 crore belonging to Associated Journals Limited were illegally taken over as part of the transactions under scrutiny.
What Is National Herald 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.
Later, the Enforcement Directorate (ED) treated this as a money-laundering case under the Prevention of Money Laundering Act (PMLA) and filed a chargesheet.
What The Court Said Today
A Delhi court on Tuesday gave major legal relief to Sonia Gandhi and Rahul Gandhi in the case. The court refused to take cognisance of a fresh prosecution complaint filed by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA). The judge said he will not officially start legal proceedings on the ED’s new chargesheet at this stage because the complaint was based on a private person’s complaint rather than a registered FIR (First Information Report). This meant the court did not find enough formal basis right now to proceed with the ED’s allegations against the Gandhis and others named in the case.
This decision is seen as a temporary relief for the Gandhis, since the court will not act on the ED’s chargesheet yet.
The court also ruled that Rahul & Sonia Gandhi are not entitled to a copy of the FIR filed by the Delhi Police (even if they have been named).
However, the court did not block the entire investigation. It said the ED can continue investigating and may file revised or new submissions later.
What Is DK Shivakumar’s Role In The Case?
Karnataka Deputy Chief Minister and senior Congress leader DK Shivakumar has been drawn into the investigation because of his alleged financial links to Young Indian, the company at the heart of the National Herald dispute. Shivakumar has said that he will seek more time from the Delhi Police to appear in connection with the case, citing the ongoing Karnataka Assembly winter session. Shivakumar said he plans to present himself before investigators only after the session concludes on December 19.
The Delhi Police’s Economic Offences Wing has sent a formal notice to Congress leader DK Shivakumar in connection with the National Herald case, seeking details of his financial dealings. Investigators have asked him to share records of any donations or fund transfers made to Young Indian and to explain his links with Congress-associated organisations. Officials believe Shivakumar may have important information due to his financial interactions and position in the party. A similar notice has also been issued to his brother, DK Suresh, asking for details on the amount of money given to Young Indian, the sources of these funds, and related communications.
Others Named In The Case
Apart from Sonia Gandhi, Rahul Gandhi and Shivakumar, several other prominent names have been linked to the National Herald case. The late Motilal Vora and Oscar Fernandes, both senior Congress leaders, were key figures associated with Associated Journals Limited (AJL), the company that published the National Herald newspaper. Suman Dubey, a journalist and long-time associate of the Gandhi family, has also been named for his role as a director in AJL. Sam Pitroda, a well-known technocrat and Congress leader, was another director linked to the company. On the corporate side, Young Indian Private Limited is central to the case, as it took over AJL’s debt and gained control of its assets. Investigative agencies are examining the roles of these individuals and entities to determine whether financial transactions and decisions were lawful.
