In a major legal development, a Delhi court on Tuesday delivered a significant relief to Congress leaders Sonia Gandhi and Rahul Gandhi. The court declined to take cognisance of the Enforcement Directorate's (ED) prosecution complaint in the high-profile National Herald money laundering case.
Court Cites Legal Infirmity in ED's Approach
Special Judge Vishal Gogne, in a detailed 117-page order, held that the ED's investigation was "impermissible in law". The ruling was based on the absence of a First Information Report (FIR) concerning the alleged predicate offence, which is a mandatory prerequisite for launching a probe under the Prevention of Money Laundering Act (PMLA).
The court clarified that the money laundering probe could not be sustained without a foundational FIR registered by the concerned law enforcement agency. It noted that the original complaint was filed by BJP leader Subramanian Swamy under Section 200 of the CrPC in 2014. However, Swamy is not an authorised investigating agency, and the Central Bureau of Investigation (CBI) has still not registered an FIR in the matter.
ED Accused of Overreaching Its Mandate
Judge Gogne strongly criticised the ED's method of initiating proceedings. The agency had recorded its own Enforcement Case Information Report (ECIR) on June 30, 2021, despite the CBI's inaction. The court stated this act was not a mere expression of the ED's independent authority but represented a "unilateral overreach" into the CBI's role and a violation of the PMLA's legal framework.
The order pointed out that the ED had "simply inverted the template" by treating the money laundering probe as primary, rather than it being consequential to a proven predicate offence investigated by another agency.
What Happens Next in the Investigation?
While setting aside the ED's prosecution complaint, the court allowed the agency to continue its investigation based on a separate FIR registered by the Delhi Police's Economic Offences Wing on October 3. This FIR was brought to the court's notice during the proceedings.
Furthermore, the court rejected a plea from the Gandhis seeking a copy of this police FIR, stating they were not entitled to it at the current stage of the probe. The judge also remarked that it would be "premature and imprudent" to decide on the merits of the allegations made by either the ED or the accused at this juncture.
The case revolves around the acquisition of Associated Journals Limited (AJL), the publisher of the now-defunct National Herald newspaper. This legal reprieve for the Congress leadership marks a pivotal moment in the long-running political and legal saga.
