Dismisses ED's Money Laundering Complaint in National Herald Case

The BJP, however, downplayed the development, insisting it offered "no relief" to the Gandhis. Party sources emphasized that the court made no observations on the merits of the allegations and that the dismissal was procedural

In a significant development, a special court in Delhi's Rouse Avenue complex on Tuesday refused to take cognizance of the Enforcement Directorate's (ED) prosecution complaint in the National Herald money laundering case, providing major relief to Congress leaders Sonia Gandhi and Rahul Gandhi. 

Special Judge Vishal Gogne, hearing the Prevention of Money Laundering Act (PMLA) matter, ruled that the ED's chargesheet was not maintainable. The court observed that the agency's investigation stemmed from a private criminal complaint filed by BJP leader Subramanian Swamy in 2012, rather than a First Information Report (FIR) registering a scheduled (predicate) offence, which is a prerequisite for initiating PMLA proceedings. 

"The complaint is dismissed," the judge stated while reading the operative portion of the order. The court held that taking cognizance would be "impermissible in law" under these circumstances. It also noted that the Delhi Police's Economic Offences Wing (EOW) had registered an FIR in the matter on October 3, 2025, making it premature to adjudicate the ED's arguments on merits at this stage. 

The ED's chargesheet, filed in April 2025, named Sonia Gandhi, Rahul Gandhi, late Congress leaders Motilal Vora and Oscar Fernandes, party associates Suman Dubey and Sam Pitroda, as well as Young Indian Pvt Ltd and another firm, Dotex Merchandise Pvt Ltd. The agency alleged criminal conspiracy and money laundering involving the acquisition of assets worth approximately ₹2,000 crore belonging to Associated Journals Limited (AJL), the publisher of the now-defunct National Herald newspaper. 

According to the ED, the Congress party advanced an interest-free loan of ₹90 crore to AJL, which was later assigned to Young Indian—a not-for-profit company in which Sonia and Rahul Gandhi held 76% shares. The agency claimed this transaction allowed Young Indian to "fraudulently" take control of AJL's valuable properties in Delhi, Mumbai, and other locations without adequate consideration, constituting money laundering. 

The case traces its roots to 2012 when Subramanian Swamy filed a private complaint alleging cheating, criminal breach of trust, and misappropriation of funds under the Indian Penal Code. A trial court took cognizance in 2014, summoning the accused, leading to prolonged legal battles. The ED initiated its parallel PMLA probe in 2014, attaching assets worth over ₹750 crore and questioning the Gandhis multiple times. 

Reacting to Tuesday's ruling, the Congress party hailed it as a vindication. Party spokesperson Supriya Shrinate described the ED's proceedings as "completely illegal and malafide," asserting that the court's decision exposed the "illegality" of the Narendra Modi government's actions. "The Modi government's illegality stands fully exposed. The court has ruled that the ED case is without jurisdiction; it has no FIR, without which there is no case," she said. Congress leaders, including Rahul Gandhi, posted on social media that "truth has prevailed." 

The BJP, however, downplayed the development, insisting it offered "no relief" to the Gandhis. Party sources emphasized that the court made no observations on the merits of the allegations and that the dismissal was procedural. They pointed to the recent EOW FIR as fulfilling the predicate offence requirement, allowing the ED to potentially file a fresh complaint after the police probe concludes. The agency is reportedly planning to appeal the order or proceed accordingly under PMLA provisions. 

Legal experts noted that while the ruling halts the current PMLA proceedings, it does not end the broader investigation. The ED retains the authority to continue its probe and file a supplementary or new chargesheet if supported by the EOW's findings. 

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1. The underlying criminal case based on Swamy's complaint remains pending in another court. The National Herald, founded by Jawaharlal Nehru in 1938 as a voice of the independence movement, ceased print publication in 2008 due to financial difficulties. AJL's revival efforts through Young Indian have been at the heart of the controversy. Congress leaders have consistently maintained that the transactions were legitimate, aimed at reviving the newspaper as a non-profit venture, with no personal gain involved. 
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3. This ruling comes amid heightened political tensions, with opposition parties frequently accusing central agencies like the ED of selective targeting. The case has been a flashpoint since 2014, symbolizing the bitter rivalry between the Congress and the ruling BJP.
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5. As the legal saga continues, Tuesday's decision marks a temporary setback for the ED but leaves room for further action, ensuring the National Herald controversy remains in the spotlight.