Court dismisses ED's complaint against Gandhis in National Herald case
What's the story
A Delhi court has dismissed the Enforcement Directorate's (ED) money laundering complaint against Congress leaders Sonia Gandhi and Rahul Gandhi. The complaint was related to the National Herald case. Special Judge Vishal Gogne of Rouse Avenue Court ruled that the ED's complaint under the Prevention of Money Laundering Act (PMLA) was not maintainable without a First Information Report (FIR).
Legal decision
Court's ruling on ED's complaint
The court ruled, "An investigation and the consequent prosecution complaint pertaining to the offense of money laundering defined under Section 3 and punishable under Section 4 is not maintainable in the absence of a FIR or the offense mentioned in the Schedule to the Act." The court also noted that since Delhi Police's Economic Offences Wing has now registered an FIR in this matter, it would be premature to decide on the ED's allegations.
Case details
ED's allegations and Gandhis's defense
The ED had alleged that there was laundering of "proceeds of crime" from the alleged fraudulent takeover of Associated Journals Limited (AJL) properties, which is worth more than ₹2,000 crore, by Young Indian. The Gandhis are said to be majority shareholders in Young Indian. AJL is the publisher of National Herald. However, the Congress leaders contended that this is a strange case where money laundering allegations were made without using or projecting property.
Case origin
Background of the National Herald case
During the hearings, the Congress leaders denied the ED's claims that Young Indian was used to seize AJL assets in exchange for a loan. They maintained that the loan was intended to render AJL debt-free. The National Herald case originates from a private complaint by former Union Minister Subramanian Swamy. The complaint accused Sonia Gandhi, Rahul Gandhi, Motilal Vora, Oscar Fernandes, and others of cheating and criminal conspiracy. The ED filed a prosecution complaint against them on April 15.