New Delhi: A Delhi court on Tuesday dismissed the Enforcement Directorate’s money laundering complaint against Congress leaders Sonia Gandhi and Rahul Gandhi in the National Herald case, holding that the prosecution was legally unsustainable at this stage.
Special Judge (PC Act) Vishal Gogne of the Rouse Avenue Court declined to take cognisance of the complaint filed under the Prevention of Money Laundering Act (PMLA), ruling that the case was not founded on a First Information Report (FIR), which is a mandatory prerequisite under the law.
The court observed that the ED’s proceedings stemmed from a private complaint filed by BJP leader Subramanian Swamy before a magistrate, and not from an FIR related to a scheduled or predicate offence under the PMLA. It clarified that a money laundering investigation and prosecution can proceed only when there is an FIR for a scheduled offence listed under the Act.
“In the absence of such an FIR, taking cognisance of the prosecution complaint under Sections 3 and 4 of the PMLA would be impermissible,” the judge said, while dismissing the ED’s complaint.
At the same time, the court noted that the Delhi Police’s Economic Offences Wing has since registered an FIR in the matter. In view of this development, the judge said it would be premature to examine the merits of the allegations at this stage. The court left it open for the ED to place further submissions on record in accordance with law, noting that the investigation is stated to be ongoing.
Apart from Sonia and Rahul Gandhi, the ED had named Suman Dubey, Sam Pitroda, Young Indian, Dotex Merchandise and Sunil Bhandari as accused in its complaint. The agency had alleged laundering of proceeds of crime arising from the purported fraudulent takeover of assets belonging to Associated Journals Limited (AJL), the publisher of the National Herald newspaper.
According to the ED, the properties involved were valued at over ₹2,000 crore and were allegedly taken over by Young Indian, a company in which Sonia and Rahul Gandhi are majority shareholders. The agency claimed that AJL’s shares and immovable properties, along with rental income generated from them, constituted proceeds of crime.
The Gandhis have consistently denied the allegations, arguing that the case was unprecedented as it alleged money laundering without any use, projection or enjoyment of property as required under the law. They maintained that Young Indian was not used to usurp AJL’s assets and that the transaction was aimed at making AJL debt-free through a loan arrangement.
Reacting to the court’s order, Congress leader and party spokesperson Supriya Shrinate said the decision exposed the “malafide and illegality” of the Modi government. She said the court had ruled that the ED case was without jurisdiction and that without an FIR there could be no money laundering case.
“This politically motivated prosecution of the principal opposition party over the last decade stands exposed before the people of India,” Shrinate said, asserting that there was no money laundering, no proceeds of crime and no movement of property.
She added that the Congress leadership would continue to fight for the truth and would not be intimidated. “Satyamev Jayate,” she said.
