A Delhi court has delivered a significant setback to the Enforcement Directorate (ED) by rejecting its money laundering chargesheet against Congress leaders Sonia Gandhi and Rahul Gandhi in the National Herald case, triggering sharp political reactions from both the Congress and the BJP.
Court Throws Out ED’s Case
Special Judge Vishal Gogne, while hearing the matter on Tuesday, ruled that the ED had failed to make out a sustainable case under the Prevention of Money Laundering Act (PMLA). The court rejected the chargesheet, observing that the investigation itself lacked a valid legal foundation.
Following the order, the Gandhis termed the decision a vindication of their stand, calling it a victory of truth.
Case Traces Back to 2011 Complaint
The controversy dates back to 2011, when BJP leader Subramanian Swamy filed a private complaint alleging financial irregularities in Associated Journals Limited (AJL), the publisher of the now-defunct National Herald newspaper.
Swamy alleged that AJL had taken an interest-free loan of ₹90.25 crore from the Congress party and failed to repay it. He further claimed that Young Indian Private Limited, a company linked to the Gandhi family, acquired AJL’s shares and control over properties valued at around ₹5,000 crore, amounting to criminal misappropriation.
ED Allegations Under PMLA
Based on these allegations, the Enforcement Directorate filed a chargesheet under the PMLA, naming Sonia Gandhi, Rahul Gandhi and other Congress leaders, including some who have since passed away. The ED accused them of conspiracy and money laundering in the alleged takeover of AJL’s assets.
Judge Finds Procedural Flaws
The court, however, was unconvinced by the ED’s arguments. Judge Gogne pointed out that the ED’s case was based on a private complaint rather than a registered FIR, calling it procedurally untenable and insufficient to initiate money laundering proceedings.
Senior advocate Abhishek Manu Singhvi, appearing for Sonia Gandhi, argued that no proceeds of crime were involved and that Young Indian had merely taken over AJL’s debt — an action that does not constitute money laundering.
Congress Claims ‘Truth Has Won’
Soon after the verdict, the Congress party launched a sharp attack on the BJP-led central government, alleging political vendetta. Party leaders said the ED case was an act of harassment that dragged on for nearly a decade, asserting that the court order exposed the misuse of central agencies.
BJP Says Probe Not Over
The BJP, however, maintained that it would not back down. The party said the investigation is still underway and reiterated its stand that accountability must be ensured in the National Herald matter.
Political Battle Continues
While the court’s decision has given temporary relief to Sonia and Rahul Gandhi, the broader political confrontation surrounding the National Herald case is far from over, with both sides digging in as legal and political proceedings continue.