Delhi Court Dismisses ED's Money Laundering Case Against Sonia and Rahul Gandhi
Court's Ruling Provides Relief to Congress Leaders
New Delhi:
A Delhi court has dealt a significant blow to the Enforcement Directorate (ED) by rejecting its money laundering case against Congress leaders Sonia Gandhi and Rahul Gandhi concerning the National Herald issue. The court determined that the case lacked the necessary legal basis.
The ruling offers immediate relief to the Gandhis, as the court concluded that the ED's complaint under the Prevention of Money Laundering Act (PMLA) was invalid without a registered FIR for a scheduled offence.
Special Judge Vishal Gogne of the Rouse Avenue Court stated that the prosecution's complaint was not maintainable at this stage since it originated from a private complaint rather than an FIR, which is essential under the PMLA to initiate money laundering proceedings.
Court Highlights Legal Requirements for PMLA Cases
The court noted that the ED's case stemmed from a private complaint filed by BJP leader Subramanian Swamy, rather than an FIR related to a predicate offence under the PMLA. The judge emphasized that investigations and prosecutions for money laundering can only begin when there is a legally registered scheduled offence.
“Without such an FIR, acknowledging the alleged money laundering offence would be impermissible,” the court stated while dismissing the prosecution complaint and refusing to acknowledge it under Sections 3 and 4 of the Act.
ED Granted Opportunity for Future Submissions
Simultaneously, the court acknowledged that the Delhi Police's Economic Offences Wing (EOW) has since registered an FIR in this matter. Given this development, the judge remarked that it would be premature to assess the merits of the allegations raised by the ED at this point.
The court has left the possibility open for the agency to submit new evidence in accordance with the law, indicating that the investigation is still ongoing.
Details of the Allegations Against the Gandhis
In addition to Sonia and Rahul Gandhi, the ED's complaint also named Suman Dubey, Sam Pitroda, Young Indian, Dotex Merchandise, and Sunil Bhandari as accused parties.
The ED alleged that Young Indian, a company where Sonia and Rahul Gandhi hold majority shares, fraudulently took over assets of Associated Journals Limited (AJL), the publisher of the now-defunct National Herald newspaper. The agency claimed that the properties involved were valued at over Rs 2,000 crore, asserting that the shares, immovable assets, and rental income constituted proceeds of crime.
Gandhis Deny Allegations, Call Case Legally Flawed
The Gandhis have consistently refuted the allegations, arguing that the case lacks legal merit as it claims money laundering without any actual use, projection, or enjoyment of the property, as mandated by law. They assert that Young Indian was established to eliminate AJL's debt through a loan arrangement, not to seize its assets.
Congress Responds to Court's Decision
In response to the ruling, Congress spokesperson Supriya Shrinate stated that the court's decision has revealed the “malafide and illegal” nature of the ED's actions. She emphasized that the court clearly indicated that the agency lacked jurisdiction to proceed without an FIR.
“This politically motivated prosecution of the principal opposition party has been exposed,” Shrinate remarked, asserting that there was no money laundering, no proceeds of crime, and no movement of property. “These unfounded charges, driven by a witch hunt and attempts to tarnish reputations, have been defeated,” she added.
The National Herald case originated from a private complaint filed by Subramanian Swamy, alleging cheating, criminal conspiracy, and misappropriation. The ED filed its prosecution complaint on April 15 this year and has indicated it may appeal Tuesday’s ruling.