The Delhi High Court granted Sonia Gandhi, Rahul Gandhi and other respondents three weeks to respond to the Enforcement Directorate’s plea challenging a trial court’s refusal to take cognisance of its chargesheet in the National Herald money laundering case.
New Delhi: The Delhi High Court granted three weeks to Congress leaders Sonia Gandhi, Rahul Gandhi and other respondents to file their replies to the Enforcement Directorate’s (ED) petition assailing a trial court order that declined to take cognisance of the agency’s chargesheet in the money laundering case linked to the National Herald newspaper.
Justice Manoj Jain extended the time after counsel for the respondents sought an opportunity to place their responses on record, and posted the matter for hearing on September 10.
The ED’s petition arises out of the order dated December 16, 2025 of the Rouse Avenue Courts, by which Special Judge Vishal Gogne declined to take cognisance of the agency’s prosecution complaint under the Prevention of Money Laundering Act, 2002 (PMLA).
The trial court took the view that cognisance of the complaint was impermissible in law because it was not founded on a first information report, the proceedings having originated in a private complaint. The agency was, however, left free to continue its investigation.
The ED moved the High Court within days of that order. On December 22, 2025, the High Court issued notice both on the main petition and on the agency’s application seeking a stay of the trial court’s order. Notice was directed to be served on Sonia Gandhi, Rahul Gandhi, Suman Dubey, Sam Pitroda, Sunil Bhandari, Young Indian and Dotex Merchandise Private Limited.
Appearing for the ED at that stage, Solicitor General Tushar Mehta had contended that the reasoning adopted by the trial court would carry consequences well beyond the present case.
Urging for early and final adjudication of the challenge, the Solicitor General had submitted,
“This brings the PMLA on its head. It becomes otiose and redundant if this order is to sustain,”
The ED has alleged conspiracy and money laundering against Sonia Gandhi and Rahul Gandhi, the late Congress leaders Motilal Vora and Oscar Fernandes, Suman Dubey, Sam Pitroda and the private company Young Indian. According to the agency, immovable and other assets of Associated Journals Limited (AJL) the company that published the National Herald valued at approximately Rs.2,000 crore were acquired unlawfully.
It has been alleged that a loan of Rs.90 crore owed by AJL to the Indian National Congress was assigned to Young Indian for a consideration of Rs.50 lakh, resulting in effective control of AJL’s assets passing to the company, in which Sonia Gandhi and Rahul Gandhi are said to hold a combined 76 per cent shareholding. The agency has further alleged that rental income of about ₹142 crore generated from AJL properties constitutes proceeds of crime within the meaning of the statute.
The accused have denied the allegations. Their position, taken consistently through the proceedings, is that Young Indian is a not-for-profit company incorporated under Section 25 of the Companies Act, 1956, from which no shareholder can draw any personal benefit, and that no property was transferred to any individual.
The Congress has described the prosecution as politically motivated.
The National Herald was founded in 1938 by Jawaharlal Nehru and was published by Associated Journals Limited, a company incorporated the same year. Publication of the newspaper ceased in 2008, by which time AJL had accumulated substantial dues owed to the Indian National Congress. AJL nonetheless retained valuable real estate in Delhi, Lucknow, Mumbai, Panchkula and elsewhere, much of it allotted at concessional rates for press purposes.
This case originates from a 2012 complaint filed by BJP leader Subramanian Swamy, who accused Congress leaders of cheating and breach of trust in the acquisition of AJL.
The court’s decision on whether to take cognizance will come after receiving clarifications from the ED.
The National Herald case involves a Rs. 90 crore loan provided by the Congress party to Associated Journals Ltd. (AJL), the publisher of the National Herald, which was assigned to Young Indian for a sum of Rs. 50 lakh. Allegations have been made regarding the misappropriation of assets exceeding Rs.2,000 crore in this equity transaction.
The High Court will take up the ED’s petition next on September 10.
Case Title: Directorate of Enforcement v. Sonia Gandhi & Ors
