National Desk. Congress leaders Sonia Gandhi and Rahul Gandhi have received a major relief from a Delhi court in the National Herald money laundering case. The Rouse Avenue Court has refused to take cognizance of the prosecution complaint filed by the Enforcement Directorate (ED) against the Gandhi family.

Pronouncing the verdict on Tuesday, Special Judge Vishal Gogane said that cognizance cannot be taken at this stage as the ED case is not based on any FIR (First Information Report) but only on a private complaint filed by Subramanian Swamy and summons orders issued by the magistrate.

Highlights of the court's decision

In its landmark judgment, the court raised several serious questions about the ED's actions. The court stated that the investigating agency (CBI) had not yet registered any predicate offense, yet the ED continued with the investigation. According to the court, in the absence of an FIR, the money laundering investigation and the prosecution complaint filed on its basis cannot be sustained. The court clarified that money laundering proceedings based on such a complaint are not maintainable and that taking cognizance of a complaint filed by a private individual is not legally permissible. The court also stated that a copy of the FIR will not be provided to Sonia Gandhi and other accused for the time being. The court stated that for these reasons, it is unnecessary to consider other arguments related to the merits of the case.

Now the EOW FIR has become important

Following this court decision, the FIR filed by the Delhi Police's Economic Offences Wing (EOW) has become significant. On October 3, the Delhi Police's EOW filed a new FIR related to the National Herald case. Congress leaders Rahul Gandhi, Sonia Gandhi, Sam Pitroda, Suman Dubey, Young Indian Private Limited, and others have been named as accused in this FIR. The accused had demanded a copy of the FIR, but the court clarified on Tuesday that they would not receive a copy.

What is the National Herald case?

The National Herald newspaper was founded in 1938 by Pandit Jawaharlal Nehru. It was published by Associated Journals Limited (AJL). Due to financial difficulties, the newspaper closed in 2008. In 2010, a company called Young Indian Private Limited was formed, in which Sonia Gandhi and Rahul Gandhi hold a 38 percent stake each. 

An Enforcement Directorate investigation revealed that Young Indian acquired AJL assets worth approximately ₹2,000 crore for a mere ₹50 lakh, despite their much higher market value. In November 2023, the ED seized immovable properties worth approximately ₹661 crore and AJL shares worth ₹90.2 crore, which were considered proceeds of crime.