National Herald Case: Court Flags Procedural Gaps
New Delhi, Dec 16: A Delhi court on Tuesday underscored the importance of strict procedural compliance under the Prevention of Money Laundering Act (PMLA) by declining to take cognisance of the Enforcement Directorate’s prosecution complaint in the National Herald case.
Special Judge (PC Act) Vishal Gogne of the Rouse Avenue Courts ruled that the ED’s complaint, in its present form, did not satisfy the statutory conditions required for a court to formally initiate criminal proceedings under the PMLA.
The prosecution complaint had listed senior Congress leaders Sonia Gandhi and Rahul Gandhi, along with Congress Overseas chief Sam Pitroda, Suman Dubey, Sunil Bhandari, Young Indian, and Dotex Merchandise Private Limited as proposed accused.
The court clarified that while the complaint could not be acted upon at this stage, the investigative agency retains the authority to continue its probe and undertake further steps permitted under law.
The proceedings stem from allegations relating to the transfer of assets owned by Associated Journals Limited (AJL), the publisher of the National Herald newspaper. The ED has alleged that assets valued at more than ₹2,000 crore were brought under the control of Young Indian, a company in which Sonia and Rahul Gandhi are majority shareholders, for a consideration of ₹50 lakh.
Earlier, the court had deferred its decision after noting that a detailed examination of financial transactions, alleged rent receipts, and fund flow mechanisms was essential to determine whether the legal threshold for cognisance was met. The judge had observed that such scrutiny was necessary before allowing the prosecution to move forward.
The ED has maintained that the matter involves serious economic offences, alleging that the corporate structure and financial arrangements were used to facilitate an unlawful takeover of AJL properties. The agency has also questioned the authenticity of certain financial transactions cited in the case.
The Congress leadership has consistently rejected the allegations, arguing that the case does not constitute money laundering and lacks the foundational elements required under the PMLA.
The legal dispute traces its origins to a 2012 complaint filed by BJP leader Subramanian Swamy, which led to multiple layers of judicial and investigative proceedings over the years. (Edited)