Key Points

The Rouse Avenue Courts asked the Gandhis and others accused to show cause as to why cognisance should not be taken on the charge sheet filed by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA).

Last week, Special Judge (PC Act) Vishal Gogne temporarily declined to issue notice on ED’s prosecution complaint and asked the federal anti-money laundering agency to place the requisite documents on record and remove the defects.

As the prosecution contended that the court can take cognisance of a charge sheet without hearing the accused and, therefore, notices should be issued, the judge had said: "I cannot pass such an order until satisfied."

The court had then posted the matter for hearing on May 2.

The ED recently filed a prosecution complaint against senior Congress leaders, including Sonia Gandhi and Rahul Gandhi, in the National Herald case. Others named in the charge sheet include Congress Overseas Chief Sam Pitroda, Suman Dubey, and others.

The charge sheet, filed before Delhi's Rouse Avenue Courts, values the alleged proceeds of crime to the tune of Rs 988 crore. It is alleged that the Congress leadership had misappropriated property belonging to the Associated Journals Limited (AJL), the original publisher of the National Herald, by converting public trusts into personal assets.

The National Herald, a newspaper established by Jawaharlal Nehru and other prominent leaders in 1938, was originally aimed at representing the liberal voice within the Indian National Congress. Published by AJL, the National Herald was a critical tool for Congress during the freedom struggle and post-independence years. Alongside the English publication, AJL also published newspapers in Hindi and Urdu. However, the paper ceased operations in 2008 due to mounting debts exceeding Rs 90 crore.

The controversy over its assets came into focus in 2012 when BJP leader Subramanian Swamy filed a complaint in a trial court, alleging that Congress leaders had engaged in cheating and breach of trust in the process of acquiring AJL.

According to Swamy, the firm Young Indian Ltd -- in which Sonia and Rahul Gandhi are majority stakeholders -- acquired control over the newspaper's vast assets through a "malicious" takeover aimed at benefiting the party leadership personally. In the course of the investigation, the ED found that the accused, including Sonia Gandhi and Rahul Gandhi, used Young Indian to acquire AJL’s assets at a nominal price of Rs 50 lakh. The probe agency claimed that Young Indian, beneficially owned by the Gandhis, effectively took control of AJL’s properties while undervaluing their market worth.

In November 2023, the ED attached immovable properties valued at Rs 661 crore and AJL shares worth Rs 90.2 crore, terming them suspected proceeds of crime.

- IANS