In a temporary relief to Sonia Gandhi and Rahul Gandhi, a Delhi court on Tuesday refused to take cognisance of the Enforcement Directorate’s money laundering case in the National Herald matter, holding that the prosecution complaint was not maintainable at this stage.
The Rouse Avenue Court said the ED’s complaint under the Prevention of Money Laundering Act (PMLA) was based on a private complaint filed by BJP leader Subramanian Swamy and not on a First Information Report (FIR), a key requirement for initiating proceedings under the law.
The court also noted that the Delhi Police’s Economic Offences Wing (EOW) has already registered an FIR in the case, making it “premature and imprudent” to rule on the ED’s submissions at this point.
While declining to take cognisance, the court clarified that the ED is free to continue its investigation. The agency has indicated it will appeal against the order.
Last month, the EOW filed its submissions, accusing Sonia Gandhi, Rahul Gandhi, and five others — including Congress overseas unit chief Sam Pitroda — of conspiring to fraudulently take over Associated Journals Limited (AJL), the publisher of the now-defunct National Herald newspaper.
The order triggered sharp political reactions.
Congress leader Abhishek Singhvi dismissed the allegations as a case “conjured out of the BJP’s twisted mind” and described them as part of the ruling party’s “recycled obsession.” The BJP countered by accusing the Congress of panic and frustration, with party general secretary Tarun Chugh claiming the opposition was rattled by the investigation.
Several opposition allies also rallied behind the Congress. Shiv Sena (UBT) leader Priyanka Chaturvedi termed the case a “political witch hunt” and alleged misuse of investigative agencies to target opposition voices.
Founded in 1938 by Jawaharlal Nehru and others, the National Herald was published by AJL and was long regarded as a Congress-linked newspaper. Though it ceased publication in 2008 with debts of about ₹90 crore, AJL retained prime real estate assets then valued at around ₹2,000 crore, which the ED now estimates to be worth nearly ₹5,000 crore.
In 2012, Subramanian Swamy filed a private complaint alleging that senior Congress leaders, including the Gandhis, had illegally taken over AJL’s assets through a transaction valued at just ₹50 lakh. The properties involved include Herald House in Delhi and assets in Mumbai, reportedly worth over ₹600 crore. The ED has also alleged that AJL earned rental income by commercially exploiting properties allotted for newspaper operations, calling these earnings “proceeds of crime” worth nearly ₹1,000 crore.