The National Herald case saw a major legal development as a Delhi court declined to take cognizance of the ED’s chargesheet against Sonia Gandhi and Rahul Gandhi. The court questioned the absence of a predicate offence, calling the money laundering probe unsustainable at this stage.
Sonia, Rahul Gandhi Get Relief in National Herald Case
New Delhi: Former Congress president Sonia Gandhi and her son Rahul Gandhi have received significant legal relief in the money laundering case related to the National Herald newspaper. A Delhi court, the Rouse Avenue Court, on Tuesday refused to take cognizance of the chargesheet filed by the Enforcement Directorate (ED). According to sources, the ED is considering challenging this order in a higher court.
During the hearing, the court raised serious questions about the legality of the ED's investigation. The court stated that no predicate offense (the underlying crime) had been registered by the Central Bureau of Investigation (CBI) so far, yet the ED was conducting an investigation under money laundering laws. The court also clarified that at this stage, the accused, including Sonia Gandhi and Rahul Gandhi, would not be provided with a copy of the FIR.
The court commented that without the registration of the predicate offense, there could be no basis for proceeding with a money laundering investigation. This order is being seen as a major relief for the Congress leadership, as it has temporarily halted further proceedings in the case.
Sonia-Rahul Gandhi get relief in National Herald Case; Delhi Court rejects ED chargesheet
In its complaint, the ED alleged that the assets of Associated Journals Limited (AJL), the publisher of the National Herald newspaper, were illegally acquired through Young Indian Private Limited, and that money laundering was carried out through this process.
Following the court's decision, the Congress party termed it a "victory of truth." The party stated that the order exposed the alleged malicious actions and political vendetta of the Modi government. Congress leader and Rajya Sabha MP Abhishek Manu Singhvi also called the case completely baseless.
The National Herald case has been a subject of political and legal controversy for a long time. The case originated from a complaint filed by BJP leader and MP Subramanian Swamy. He had filed a petition against the Congress party and AJL, demanding documents related to the accounts and balance sheets of the party and the company. However, the Patiala House Court in Delhi had dismissed this petition, which was considered a major relief for the Gandhi family. The AJL and Young Indian Case
Associated Journals Limited (AJL) is the company that owns the National Herald newspaper. On February 26, 2011, the Congress party took over AJL's liabilities of approximately ₹90 crore, essentially providing AJL with an interest-free loan. Following this, Sonia Gandhi and Rahul Gandhi formed a company called Young Indian Private Limited with a capital of just ₹5 lakh, in which they each held a 38 percent stake, while the remaining 24 percent was held by Motilal Vora and Oscar Fernandes.
Subsequently, approximately 9 crore shares of AJL, each valued at ₹10, were transferred to Young Indian. In return, Young Indian assumed the responsibility for the loan provided by the Congress party. Through this process, Young Indian acquired approximately 99 percent of AJL's shares, and later, the Congress party waived the ₹90 crore loan to AJL. This allowed Young Indian to gain control of AJL without any direct payment.
BJP MP Subramanian Swamy alleges that this entire process was orchestrated to seize control of the Herald House building, which is estimated to be worth approximately ₹1,600 crore. He claims that Sonia and Rahul Gandhi conspired to give Young Indian control of AJL's valuable assets. Swamy also stated that the land on which Herald House stands was given by the central government for the purpose of running a newspaper, and therefore, it cannot be used for commercial purposes.
Currently, the case is pending in the Patiala House Court, and Sonia Gandhi and Rahul Gandhi are out on bail. The recent order from the Rouse Avenue Court is being seen as a temporary stay on the ED's investigation, providing significant legal relief to the Congress leaders. The court reiterated that it is not appropriate to proceed with an investigation under money laundering charges until the predicate offense is established.
