National Herald Case: Delhi Court To Hold Daily Hearing In ED's Money Laundering Complaint Against Rahul Gandhi, Sonia Gandhi

A Delhi Court will conduct day to day hearing from July 2-8 in the ED's money laundering complaint in the National Herald case allegedly involving Congress leaders Rahul Gandhi and Sonia Gandhi. 

During the hearing on Wednesday, Special Judge (PC Act) Vishal Gogne of the Rouse Avenue Courts permitted a copy of the complaint to be give to the complainant and BJP leader Subramanian Swamy. As the proposed accused sought an adjournment to go through voluminous record, the ED opposed the same. 

The court thus heard opening submissions by the ED and said, "Mediating between the above submission court deems it fit that opening submissions are made by ED today.The learned ASG has advanced opening submissions for the ED. The matter will be taken up for remaining submissions by ED and for submissions by proposed accused on day to day basis from July 2-8". 

During the hearing submissions were made by ASG SV Raju appearing for the ED. Meanwhile advocate Zoheb Hossain also appearing for the ED submitted that the matter pertains to criminal conspiracy allegedly involving three entities Associated Journals Limited, Young Indian and All India Congress Committee (AICC). Hossain took the court through the list of dates and stated that in 2010 AJL had 1057 equity shareholder. He thereafter submitted that an extra ordinary general meeting was organised to increase authorised share capital in favour of Young Indian. Thereafter Sonia Gandhi and Rahul Gandhi become shareholders of Young Indian. 

During the hearing the court orally asked, "Underlining allegation is ownership is implicitly transferred to first two accused so who owns the properties as on date young Indian or AJL?...In very simple words if property of A is usurped by B, does it become proceeds of crime in the hands of B?". 

Meanwhile Hossain submitted that he shall come back with answers on the court's queries adding that "whenever there is fraud, then court will probe into who is real beneficial owners which PMLA enables court to do". 

The ED had earlier filed a fresh prosecution complaint against Congress leaders Rahul Gandhi and Sonia Gandhi under sections 44 and 45 of Prevention of Money Laundering Act (PMLA) 2002 for commission of offence of money laundering as defined under section 3 read with section 70 and punishable under section 4 of PMLA, 2002. 

The controversy centers around the acquisition of Associated Journals Limited (AJL), the publisher of the now-defunct National Herald newspaper. In 2010, a newly formed company, Young Indian Pvt Ltd (YIL), acquired AJL's debts from the Indian National Congress for ₹50 lakh. Subsequently, YIL took control of AJL's assets, which were valued at over ₹2,000 crore. Sonia Gandhi and Rahul Gandhi held a majority stake in YIL, leading to allegations that they used party funds to gain control of AJL's valuable properties.

​The ED's investigation, initiated in 2014, focused on the financial transactions between the Congress party, AJL, and YIL. The agency alleges that the Gandhis and other Congress leaders engaged in a scheme to misappropriate AJL's assets for personal gain. Recently, the ED has moved to take possession of properties linked to AJL, valued at approximately ₹661 crore, under the Prevention of Money Laundering Act (PMLA).