New Delhi: A Delhi court on Tuesday declined to proceed with the Enforcement Directorate’s (ED) money laundering complaint in the National Herald case, holding that the agency’s prosecution against Congress leaders Sonia Gandhi and Rahul Gandhi does not meet the legal requirements under the Prevention of Money Laundering Act (PMLA).
The order was delivered by Special Judge Vishal Gogne of the Rouse Avenue Courts.
No Valid Basis for PMLA Proceedings, Court Says
The court ruled that the ED’s complaint could not be entertained as it was not triggered by an FIR involving a scheduled offence, which is a mandatory prerequisite for invoking the PMLA.
Instead, the judge observed, the money laundering proceedings were built on a private complaint filed under Section 200 of the CrPC by BJP leader Dr Subramanian Swamy, on which a cognisance and summoning order had earlier been passed. Such a foundation, the court said, is insufficient for sustaining a PMLA case.
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FIR Already Exists, Merits Not Examined
While pronouncing the order, the court noted that the Economic Offences Wing (EOW) of Delhi Police has already registered an FIR in the matter. Given this development, the judge said it would be premature to examine the ED’s claims on merits at this stage.
The court clarified that cognisance of a money laundering offence cannot be taken unless it originates from an FIR linked to a scheduled offence, leading to the dismissal of the ED’s prosecution complaint.
ED’s Allegations Against Gandhis
The Enforcement Directorate had filed a fresh complaint against Sonia Gandhi and Rahul Gandhi under Sections 44 and 45 of the PMLA, alleging offences punishable under Section 4 of the Act. The agency claimed that the accused were involved in laundering proceeds of crime connected to the takeover of assets belonging to Associated Journals Limited (AJL).
National Herald Dispute Explained
The case relates to AJL, the publisher of the now-defunct National Herald newspaper. In 2010, Young Indian Pvt Ltd (YIL)—a company in which Sonia Gandhi and Rahul Gandhi held a majority stake—acquired AJL’s debt from the Congress party for ₹50 lakh.
Following this transaction, YIL assumed control over AJL’s assets, which are estimated to be worth more than ₹2,000 crore, prompting allegations that the arrangement was used to gain control over prime real estate owned by AJL.
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Property Action and Ongoing Probe
The ED’s probe, initiated in 2014, examined financial links between the Congress party, AJL and YIL. The agency has alleged that Congress leaders misused party funds to appropriate AJL’s assets.
In recent months, the ED has also moved to take possession of AJL-linked properties worth about ₹661 crore under the PMLA.
The matter remains subject to further legal proceedings.
Story: Political Desk | BlazeB
Pics Courtesy: pexels.com; unsplash.com
16th December 2025
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