The Enforcement Directorate (ED) on Friday escalated its legal battle in the National Herald case by approaching the Delhi High Court. The move comes as a direct challenge to a trial court's decision that refused to accept the agency's prosecution complaint against Congress leaders Sonia Gandhi and Rahul Gandhi.
Court's Grounds for Rejection
This development follows a significant order passed by a Delhi court on Tuesday. Special Judge Vishal Gogne, in a detailed 117-page ruling, declined to take cognisance of the ED's prosecution complaint, which holds the same legal weight as a police chargesheet. The judge's central finding was that the ED's investigation was "impermissible in law" because it was not initiated based on a First Information Report (FIR).
The court emphasized that under the Prevention of Money Laundering Act (PMLA), an FIR is a mandatory prerequisite to begin a probe. Judge Gogne ruled that an investigation and the subsequent prosecution complaint for money laundering cannot legally stand without an FIR as their foundation.
Investigation to Continue on Different FIR
However, the court provided a pathway for the ED to continue its probe. It permitted the agency to proceed with its investigation based on a separate FIR registered by the Delhi Police's Economic Offences Wing on October 3. The ED had brought this FIR to the court's attention during the hearings.
In another notable decision, the court rejected a plea from the Gandhis seeking a copy of this police FIR. The judge stated that they were not entitled to receive the document at this current stage of the investigation.
Origins of the Case Scrutinized
Delving into the genesis of the case, Judge Gogne examined how the allegations first surfaced. He noted that the complaint was originally instituted by public person Subramanian Swamy under Section 200 of the Code of Criminal Procedure (CrPC). The judge pointed out that Swamy "is not a person authorised to investigate the offence mentioned in the schedule (Section 420 of IPC)".
Given these procedural findings, the court concluded that it was "premature and imprudent" to decide on the substantive merits of the allegations presented by either the ED or the proposed accused at this juncture.
The case revolves around the acquisition of Associated Journals Limited (AJL), the company that published the now-defunct National Herald newspaper. The ED's money laundering probe is linked to this transaction.
The agency's appeal to the High Court sets the stage for the next phase of this high-profile legal confrontation, which has significant political ramifications.
