New Delhi | A Delhi court on Tuesday refused to take cognisance of the Enforcement Directorate’s (ED) money laundering chargesheet filed against senior Congress leaders Sonia Gandhi and Rahul Gandhi in the high-profile National Herald case, delivering a significant procedural setback to the central agency.
The court observed that the ED’s prosecution was legally untenable at this stage, as it stemmed from a private complaint rather than an FIR related to a scheduled (predicate) offence under the Prevention of Money Laundering Act (PMLA).
Court’s Key Observation on ED Chargesheet
Special Judge Vishal Gogne, while pronouncing the order, noted that the chargesheet was based on an investigation initiated from a private complaint and not from a registered predicate offence — a mandatory legal requirement for invoking PMLA provisions.
The judge stated that taking cognisance of the ED’s case would be impermissible in law, as the foundational conditions under the statute had not been satisfied.
FIR Already Registered by Delhi Police EOW
The court also pointed out that the Economic Offences Wing (EOW) of Delhi Police has already registered an FIR related to the matter. Given this development, the judge said it would be premature to examine the ED’s arguments on merits until the legal process concerning the predicate offence is conclusively addressed.
Reading out the operative portion of the order, the court clarified that the present stage does not warrant judicial scrutiny of the allegations raised by the ED.
Who Are Named in the Case?
The Enforcement Directorate has accused the following individuals and entities of criminal conspiracy and money laundering:
- Sonia Gandhi
- Rahul Gandhi
- Late Motilal Vora
- Late Oscar Fernandes
- Suman Dubey
- Sam Pitroda
- Young Indian Private Limited
According to the agency, these individuals were involved in an alleged financial arrangement linked to the takeover of assets belonging to Associated Journals Limited (AJL).
Allegations Linked to AJL and Young Indian
The ED has claimed that Young Indian Private Limited, in which Sonia Gandhi and Rahul Gandhi allegedly hold a combined 76% shareholding, “fraudulently” acquired properties owned by AJL.
These properties, according to the agency, are valued at approximately ₹2,000 crore and were allegedly taken over in exchange for a ₹90 crore loan. AJL is the publisher of the historic National Herald newspaper.
The Congress party and the accused leaders have consistently denied the allegations, calling the case politically motivated and asserting that no personal financial gain was involved.
What This Means Going Forward
While the court’s order does not quash the case, it effectively puts the ED’s prosecution on hold until the legal prerequisites under PMLA are fulfilled. The agency may still pursue its case depending on the outcome of proceedings related to the predicate offence.
Legal experts believe the ruling reinforces the principle that money laundering cases cannot proceed independently without an underlying criminal offence being established first.