National Herald case: Relief for Gandhis as court refuses to take cognisance of ED chargesheet

New Delhi: A Delhi court on Tuesday declined to take cognisance of the Enforcement Directorate’s money laundering complaint against Congress leaders Sonia Gandhi, Rahul Gandhi and five others in the National Herald investigation, stating that the agency’s case was rooted in a private complaint rather than a first information report.

Special Judge Vishal Gogne, delivering an extensive order in proceedings that have unfolded amid years of political conflict and courtroom challenges, ruled that the ED’s prosecution complaint relating to alleged violations under the Prevention of Money Laundering Act was “impermissible in law.” He noted that the investigation originated from a complaint filed by private petitioner Subramanian Swamy and not from an FIR that could qualify as a predicate offence.

According to the court, it would now be premature and inadvisable to evaluate the submissions of either the ED or the proposed accused regarding the merits of the allegations when cognisance itself had to be denied on what the judge described as a “pure question of law”. The order added that “other arguments possibly live to fight another day.”

Senior ED officials said the agency is considering an appeal after seeking legal advice, including from Solicitor General Tushar Mehta. They added that since the matter will not proceed to trial for the moment, the ED intends to file a fresh chargesheet against Sonia and Rahul Gandhi and others based on the FIR lodged by the Delhi Police on October 3 in connection with the National Herald money laundering case.

The ED has alleged that Sonia Gandhi, Rahul Gandhi, the late Motilal Vora and Oscar Fernandes, along with Suman Dubey, Sam Pitroda and the company Young Indian, engaged in conspiracy and money laundering. The agency claims they gained control of properties valued at nearly Rs 2,000 crore that belonged to Associated Journals Limited, the publisher of the National Herald.

Reacting to the court’s decision, the Congress asserted that the ruling had exposed what it described as the government’s “politically motivated prosecution”. In a joint media briefing, party spokespersons Pawan Khera and Mohammed Khan said, “Truth has prevailed, and truth will always prevail.” A separate party statement maintained that the leadership would continue to defend the rights of citizens and would not be deterred.

The Bharatiya Janata Party countered that the refusal to take cognisance did not absolve the Congress leaders. BJP spokesperson Gaurav Bhatia posted on X that the original criminal case filed by Subramanian Swamy, involving allegations of cheating, conspiracy and breach of trust, remains pending before a Delhi court. He noted that Sonia and Rahul Gandhi had been granted bail in that matter and said, “Bail granted, not acquitted.”

In another related ruling, Judge Gogne set aside a magistrate’s directive that required Delhi Police to furnish a copy of the recently filed FIR to Sonia and Rahul Gandhi. The judge stated that while the accused could be informed that an FIR exists, the earlier order mandating its supply could not stand.

Reading from the operative portion of the 117-page judgment, the court explained that since the Delhi Police’s Economic Offences Wing has already registered an FIR, it would be inappropriate to assess the ED’s complaint on its substantive claims at this stage. The judge held that a prosecution under Sections 3 and 4 of the PMLA cannot proceed without a scheduled offence recorded through an FIR. “Cognisance of the offence under section 3 and punishable under section 4 is declined. The complaint is dismissed,” the order said.

The ED has also stated that Sonia and Rahul Gandhi held a 76 per cent stake in Young Indian, which allegedly took over AJL’s assets in exchange for a Rs 90 crore loan. The Delhi Police FIR, registered on the agency’s request under Section 66(2) of the PMLA, lists charges of criminal conspiracy, dishonest misappropriation, breach of trust and cheating. Those named include the Gandhis, Suman Dubey, Sam Pitroda, AJL, Young Indian, Dotex Merchandise Ltd, Dotex promoter Sunil Bhandari and others. All except the unnamed persons also appear in the ED chargesheet filed in April.

Political leaders in Karnataka, including Chief Minister Siddaramaiah and Deputy Chief Minister D K Shivakumar, welcomed the court’s ruling, saying it had brought to light wrongful actions attributed to the Union government.