New Delhi [India], July 14 : A Delhi court on Monday reserved its order on whether to take cognisance of the Enforcement Directorate’s (ED) prosecution complaint (chargesheet) in the National Herald money laundering case involving Sonia Gandhi, Rahul Gandhi, and others. The decision will be pronounced on July 29.
Special Judge Vishal Gogne heard detailed arguments from both sides, including those representing Dotex Merchandise Pvt Ltd and Young Indian (YI), before reserving the order. The court also directed the investigating officer (IO) to be present with the case file for three days to assist with the matter.
🔍 Key Points from the Courtroom:
Defense Arguments:
- Senior Advocate Pramod Kumar Dubey (for Dotex):
- Questioned ED’s labeling of Dotex, a registered NBFC, as an “entry operator”.
- Denied knowledge of any conspiracy, stating Dotex “accidentally boarded the train” and acted in normal business operations.
- Asserted there was no security or collateral involved, but the loan was part of their business model.
- Claimed no direct involvement of Sunil Bhandari in signing the cheque or loan agreement.
- Advocate Madhav Khurana (for Young Indian):
- Argued no assets of AJL (Associated Journals Ltd) were sold; hence, allegations of future gain are speculative.
- Denied claims that interest payments were reactionary to Dr. Subramanian Swamy’s complaint, citing a payment of ₹15 lakh.
- Stated no other prosecution by ED has ever been initiated solely based on a private complaint under PMLA.
Prosecution (ED) Arguments:
- Additional Solicitor General (ASG) S.V. Raju:
- Alleged Young Indian was a front for laundering funds and continues to engage in such activities.
- Claimed the donors to AICC were misled and manipulated, some giving money under influence of senior Congress leaders.
- Highlighted that YI got assets worth ₹1,910 crore without direct investment in AJL.
- Asserted that right to recover debt (₹90 crore) from AJL, transferred for just ₹50 lakh, is a form of property.
- Claimed Dotex was merely an entry provider, giving a cheque after receiving cash.
- Stated loan was unsecured, given at 14% interest, and repaid only after Swamy’s complaint.
🏛️ About the Accused:
- Sonia Gandhi, Rahul Gandhi, Sam Pitroda, and Suman Dubey were all directors of Young Indian and allegedly responsible for its operations.
- Rahul Gandhi became a director in December 2010, shortly after the entity’s incorporation in November 2010.
- ED claims that all directors were aware and complicit in acquiring AJL’s properties through illicit means.
⚖️ Legal Standpoint:
- ED invoked Section 70 of PMLA, under which company officers can be held liable for violations.
- Cognisance standard is low; even suspicion or prima facie material is enough to summon the accused, ASG Raju argued.
🗓️ Next Step:
- Order on cognisance of the chargesheet to be pronounced on July 29, 2025 by the Rouse Avenue Court.
Context: The National Herald case revolves around the alleged misuse of funds and assets of Associated Journals Ltd (AJL) — the publisher of the now-defunct National Herald newspaper — by Young Indian, a not-for-profit company allegedly controlled by top Congress leaders. The ED is probing alleged money laundering linked to this financial arrangement.