The order was passed by Special Judge (PC Act) Vishal Gogne of the Rouse Avenue Court, who observed that proceedings under the Prevention of Money Laundering Act (PMLA) require a scheduled offence based on an FIR. Since the present matter originated from a private complaint, the ED’s case could not proceed, the court ruled.
The National Herald case traces its origin to a 2012 complaint filed by BJP leader Subramanian Swamy before a Delhi court. Swamy alleged that senior Congress leaders, including Sonia Gandhi and Rahul Gandhi, had fraudulently taken control of Associated Journals Limited (AJL), the publisher of the now-defunct National Herald newspaper, through a company called Young Indian Limited.
According to the complaint, AJL’s properties—most notably the Herald House on Bahadur Shah Zafar Marg in Delhi—were worth around ₹2,000 crore and were allegedly acquired for a nominal amount of ₹50 lakh. On the basis of these allegations, criminal proceedings were sought against several Congress leaders, including the late Motilal Vora and Oscar Fernandes.
Acting on the matter, the ED had launched a money laundering probe and, in April, issued notices to take possession of immovable properties worth ₹661 crore. It had also attached AJL shares valued at over ₹90 crore and directed tenants in Herald House to deposit rent with the agency.
During the investigation, Rahul Gandhi was questioned for nearly 50 hours over five days in June 2022, while Sonia Gandhi faced questioning for about 12 hours in July the same year.
With Tuesday’s ruling, the court has effectively halted the ED’s prosecution at this stage, marking a crucial legal setback for the agency and a reprieve for the Congress leadership.
