ED Challenges Lower Court Ruling in National Herald Case Involving Congress Leaders

ED Appeals Against Lower Court's Decision

The Enforcement Directorate (ED) has approached the Delhi High Court to contest a lower court's ruling that dismissed a money laundering complaint against Congress leaders Sonia Gandhi, Rahul Gandhi, and others in the National Herald case. The hearing for this petition is expected to take place next week.

The ED is challenging the order issued by Special Judge Vishal Gogna of the Rouse Avenue Court on December 16. The lower court had determined that the prosecution complaint filed by the ED against the Gandhi family was not legally valid, as it was not based on an FIR related to scheduled offenses under the Prevention of Money Laundering Act (PMLA).

Details of the Case

The court noted that the money laundering proceedings were initiated based on a private complaint filed by Dr. Subramanian Swamy under Section 200 of the CrPC, rather than an FIR. The ED had filed a new prosecution complaint against Rahul Gandhi and Sonia Gandhi under Sections 44 and 45 of the PMLA, 2002, which are punishable under Section 3 read with Section 70 of the PMLA, 2002.

Background of the National Herald Controversy

This controversy is linked to the acquisition of the now-defunct National Herald newspaper by Associated Journals Limited (AJL). In 2010, the newly formed Young Indian Private Limited (YIL) purchased AJL's debt from the Indian National Congress for ₹50 lakh. Subsequently, YIL gained control over AJL's assets valued at over ₹2,000 crore. Sonia Gandhi and Rahul Gandhi held a majority stake in YIL, leading to allegations that they misused party funds to seize AJL's valuable properties.