The Delhi High Court will start hearing the Enforcement Directorate’s challenge to a trial court order that dismissed proceedings against Sonia Gandhi and Rahul Gandhi. The crucial hearing from March 9 could decide whether the National Herald case moves forward again.
New Delhi: The Delhi High Court will begin hearing the Enforcement Directorate’s plea in the high-profile National Herald matter from March 9. The central agency has challenged a trial court order that had dismissed proceedings against senior Congress leaders, including Sonia Gandhi and Rahul Gandhi, along with others.
The case relates to the alleged financial irregularities connected to the National Herald newspaper and the acquisition of Associated Journals Limited (AJL) by Young Indian Pvt Ltd. The Enforcement Directorate (ED) has been investigating the matter under provisions of the Prevention of Money Laundering Act (PMLA).
Earlier, the trial court had dismissed the proceedings, granting relief to the accused. However, the ED has now moved the High Court, arguing that the trial court’s decision needs to be reviewed and set aside.
As per the latest development, the Delhi High Court has listed the matter for hearing from March 9. The agency’s plea challenges the trial court’s dismissal order and seeks restoration of proceedings against the accused persons. The outcome of the upcoming hearing could significantly impact the direction of the case, as it will determine whether the criminal proceedings will continue.
The National Herald case has been politically sensitive due to the involvement of top Congress leaders. The ED’s move to challenge the dismissal order signals that the agency intends to pursue the matter further.
Legal experts note that the High Court will examine whether the trial court correctly interpreted the law and evidence while dismissing the case.
The hearing from March 9 is expected to focus on the maintainability of the ED’s plea and the legal validity of the earlier order.
Background Of The Case
The National Herald case started from a private complaint filed in 2012 by BJP leader Subramanian Swamy before a Delhi trial court. The complaint alleged financial irregularities in the way the assets of Associated Journals Limited (AJL), the company that published the National Herald newspaper, were taken over by Young Indian Private Limited.
National Herald was originally founded in 1938 by Jawaharlal Nehru. It was published by Associated Journals Limited (AJL), a company established during the freedom movement. Over the years, AJL reportedly faced financial difficulties and stopped regular publication in 2008 due to heavy losses.
According to the complaint, the Indian National Congress had given a loan of around ₹90 crore to AJL to help it clear debts. Later, it was alleged that this loan was assigned to Young Indian Private Limited, a company in which Sonia Gandhi and Rahul Gandhi each reportedly held a 38% share. The remaining shares were said to be held by other Congress leaders.
The allegation was that Young Indian acquired control over AJL’s valuable properties — located in cities like Delhi, Mumbai, Lucknow and other places — for a very small amount, and that this amounted to misappropriation of assets worth thousands of crores. The accused leaders have denied any wrongdoing and have maintained that the transaction was lawful and done to revive the newspaper.
In 2014, the trial court took cognisance of the complaint and summoned Sonia Gandhi, Rahul Gandhi and other accused persons. The matter later reached the Delhi High Court and also the Supreme Court at different stages.
Parallel to the criminal complaint, the Enforcement Directorate (ED) began investigating the matter under the Prevention of Money Laundering Act (PMLA), alleging that the transaction involved proceeds of crime. The ED attached certain properties during the course of investigation.
Recently, a trial court dismissed certain proceedings in the case, giving relief to the accused. However, the Enforcement Directorate has now challenged that dismissal before the Delhi High Court, leading to fresh hearings in the matter.
The case remains politically sensitive and legally complex, as it involves questions related to company law, criminal conspiracy, cheating, and money laundering. The upcoming hearings are expected to determine whether the proceedings against the accused will continue further.
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