National Herald Case: ED Pushes for Cognizance, Court to Decide on July 29

Source: Times of India

National Herald Case Heats Up Again: ED Pushes for Cognizance, Court Reserves Order Till July 29

New Delhi: The legal and political corridors are once again buzzing with developments in the high-profile National Herald case involving Congress leaders Sonia Gandhi and Rahul Gandhi. Just when it seemed the Gandhi family might get a breather from courtrooms, another significant twist has brought the case back into national headlines.

On July 2, 2025, the Enforcement Directorate (ED), represented by Additional Solicitor General S.V. Raju, urged the Rouse Avenue Court in Delhi to take cognizance of its prosecution complaint filed in April 2025. This move follows an extensive investigation under the Prevention of Money Laundering Act (PMLA).

According to ED, the Congress party allegedly took control of assets worth over ₹2,000 crore belonging to Associated Journals Limited (AJL)—the company that published the historic National Herald newspaper. ED claimed that these assets were fraudulently acquired through a series of sham transactions involving a company called Young Indian (YI), in which Sonia and Rahul Gandhi reportedly hold 76% ownership.

The agency alleged that the Gandhis acquired full control over Young Indian by paying a mere ₹50 lakh, while AJL owned prime real estate properties in major cities like Delhi, Lucknow, Bhopal, Indore, Panchkula, and Patna, originally allotted by the government for the purpose of newspaper publishing post-Independence.

“Young Indian exists only on paper, and all other accused are mere puppets of the Gandhi family,” ASG Raju argued in court. ED further maintained that the entire loan transaction—₹90 crore loan from the Congress party to AJL, later assigned to Young Indian for just ₹50 lakh—was designed to facilitate illegal acquisition of assets, constituting a money-laundering offense.

Defense Terms ED Action ‘Politically Motivated’

Countering these claims, senior advocates Abhishek Manu Singhvi (for Sonia Gandhi) and R.S. Cheema (for Rahul Gandhi) strongly criticized ED’s case, terming it “strange and unprecedented.” Singhvi argued:

“This is a case of alleged money laundering without any actual movement of money, without transfer of property, and without personal gain.”

He further alleged that the investigation was reactivated based solely on a private complaint filed by BJP leader Subramanian Swamy, suggesting a political vendetta behind the proceedings.

Cheema added that the National Herald was never a commercial venture:

“The AICC only intended to revive the newspaper. This company cannot give dividends, salaries, bonuses, or allowances. It was never about profit.”

Court Reserves Order

After hearing extensive arguments from both sides, Special Judge (PC Act) Vishal Gogne reserved the order on whether to take cognizance of ED’s complaint. The decision will be pronounced on July 29, 2025.

If the court decides there is prima facie evidence, the matter will proceed to trial, where charges will be framed and witnesses summoned. This would mark the first-ever criminal trial of a political family of such stature in independent India, potentially reshaping the country’s political landscape.

However, if the court rules that the basis for ED’s case is weak or PMLA provisions do not apply effectively, the case could collapse entirely, raising serious questions about the ED’s credibility.

Background of the Case

The National Herald case dates back to a complaint filed by Subramanian Swamy in 2012, alleging criminal conspiracy by top Congress leaders. ED officially stepped in to probe money laundering aspects in 2014. In April 2025, the agency filed its prosecution complaint under Section 44 of PMLA, naming Sonia Gandhi, Rahul Gandhi, and others as accused.

With stakes this high, July 29 will be a decisive day, not just for the Gandhi family but for the narrative of political accountability in India.

What’s Your Take?
Do you believe this case is a genuine financial fraud investigation or a politically driven witch-hunt? Share your views in the comments.