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New Delhi: A Delhi court on Tuesday dismissed the Enforcement Directorate’s money laundering complaint against Congress leaders Sonia Gandhi and Rahul Gandhi in the National Herald case, holding that the prosecution was legally unsustainable in the absence of a foundational FIR.
Special Judge (PC Act) Vishal Gogne of the Rouse Avenue Court declined to take cognisance of the complaint filed under the Prevention of Money Laundering Act (PMLA), ruling that proceedings under the Act can be initiated only when there is an FIR relating to a scheduled offence.
ED Case Lacked Statutory Foundation: Court
The court noted that the ED’s complaint stemmed from a private complaint filed by BJP leader Subramanian Swamy before a magistrate and not from an FIR registered for a predicate offence listed under the PMLA.
“In the absence of an FIR for a scheduled offence, taking cognisance of an alleged offence of money laundering is impermissible,” the court held, adding that proceedings under Sections 3 and 4 of the PMLA cannot stand without the statutory preconditions mandated by law. Accordingly, the judge dismissed the prosecution complaint and refused to entertain the ED’s case at this stage.
Fresh FIR Changes Legal Position
At the same time, the court observed that the Delhi Police’s Economic Offences Wing has since registered an FIR in the matter. In light of this development, it said it would be premature to examine the merits of the ED’s allegations at present. The court left it open to the ED to make further submissions in accordance with law, noting that the investigation is stated to be ongoing.
Who Were Named in the ED Complaint
Apart from Sonia and Rahul Gandhi, the ED had named Suman Dubey, Sam Pitroda, Young Indian, Dotex Merchandise and Sunil Bhandari as accused.
The agency alleged money laundering arising from the purported fraudulent takeover of assets belonging to Associated Journals Limited (AJL), the publisher of the National Herald newspaper. According to the ED, AJL properties worth over Rs 2,000 crore were allegedly taken over by Young Indian, a company in which the Gandhis are majority shareholders.
Congress Rejects Allegations
The Gandhis have consistently denied the allegations, arguing that the case was unprecedented as it alleged money laundering without any use, projection or enjoyment of proceeds of crime, a core requirement under the PMLA. They maintained that Young Indian was not used to usurp AJL’s assets and that the transaction was intended to make AJL debt-free through a loan arrangement.
Congress Welcomes Verdict
Reacting to the ruling, Congress spokesperson Supriya Shrinate said the order had exposed the “malafide and illegality” of the ED’s action.“The Honourable Court has found the proceedings against Sonia Gandhi ji and Rahul Gandhi ji completely illegal. Without an FIR, there is no case,” she said, calling the prosecution a politically motivated witch hunt. “There is no money laundering, no proceeds of crime and no movement of property. These baseless charges stand defeated today,” Shrinate said, adding, “Satyamev Jayate.”
