The Enforcement Directorate (ED) has escalated its legal battle in the high-profile National Herald case, moving the Delhi High Court on Friday. The federal probe agency is challenging a trial court's order that dismissed its prosecution complaint against senior Congress leaders Sonia Gandhi and Rahul Gandhi, among others.
Court's Dismissal and ED's Contention
The agency filed a criminal revision petition against the December 16 order of Special Judge Vishal Gogne. The trial court had held that taking cognizance of the ED's complaint was "impermissible in law." The judge reasoned that the case was based on a private complaint filed by BJP leader Subramanian Swamy and not on any First Information Report (FIR) for a scheduled offence under the Prevention of Money Laundering Act (PMLA).
The ED contends that the judge overlooked critical evidence of money laundering. The petition is expected to be listed for hearing next week.
The Core of the Legal Tangle
The trial court noted that despite Swamy's complaint and a consequent summoning order in 2014, the Central Bureau of Investigation (CBI) did not register an FIR. "However, ED went ahead with recording an ECIR relating to money laundering on June 30, 2021, when no FIR existed in relation to the scheduled offence," the court observed. An ECIR is the ED's equivalent of an FIR.
The case involves allegations of a complex financial transaction. The ED has accused Sonia Gandhi, Rahul Gandhi, late Congress functionaries Motilal Vora and Oscar Fernandes, as well as Suman Dubey, Sam Pitroda, and a private company, Young Indian Private Ltd. (YIL), of conspiracy and money laundering.
Allegations of Asset Takeover
At the heart of the case is the alleged acquisition of properties worth Rs 2,000 crore belonging to Associated Journals Limited (AJL), the publisher of the National Herald newspaper. The ED's probe, which began in 2014, focuses on financial transactions between the Congress party, AJL, and YIL.
The agency alleges that in 2010, Young Indian, where Sonia and Rahul Gandhi are majority shareholders, acquired AJL's debts from the Congress party for Rs 50 lakh. This move, according to the ED, was a strategic step to gain control over AJL's valuable assets, constituting a conspiracy to usurp them.
The legal battle is set to enter a crucial phase in the Delhi High Court, with the ED seeking to revive its prosecution against the prominent political figures.
