National Herald Case 'Truly Strange': Sonia Gandhi Tells Delhi Court, Slams ED's 'Money Laundering' Charges
Senior advocate Abhishek Manu Singhvi, representing Congress leader Sonia Gandhi, on Friday described the Enforcement Directorate’s (ED) National Herald case as “truly a strange” and "unprecedented" during court proceedings.
The hearing took place a day after the ED argued before a Delhi court that the National Herald case is a "classic case of money laundering," pressing a Delhi court to take cognisance of its chargesheet.
Singhvi began his rebuttal after additional solicitor general S V Raju, appearing for the ED, concluded arguments on July 3 regarding the cognisance of the chargesheet filed in the case.
"This is truly a strange case. More than strange. Unprecedented. This is an alleged case of money laundering, without any property, without use or projection of property," Singhvi argued.
Sonia and Rahul Gandhi, late Congress leaders Motilal Vora and Oscar Fernandes aside from Suman Dubey, Sam Pitroda and a private company Young Indian have been accused of conspiracy and money laundering by the ED. The case involves the alleged fraudulent takeover of properties valued at over ₹2,000 crore belonging to Associated Journals Limited (AJL), publisher of the National Herald newspaper.
Singhvi Counters ED's Charges
According to the ED, the Gandhis held a 76 percent share in Young Indian, which allegedly usurped AJL’s assets in exchange for Rs 90 crore loan.
Singhvi countered these claims, submitting that the actions were intended to make AJL debt free. "Every company is entitled under law and does, every day, make their companies get free by a variety of instruments. So you take away the debt and assign it to another entity. So this company becomes debt free," Singhvi said.
He further clarified the nature of Young Indian, saying that it was a not-for-profit company. "Means it cannot give dividends, it cannot give perks, it cannot give salaries, it cannot give those bonuses. It can give nothing."
The senior lawyer critised ED's approach, claiming that the central agency did not do anything for several years, but picked up a private complaint.
"They are, obviously people associated with the Congress. To have the National Herald in a body not associated with the Congress would be worse than having Hamlet without the Prince of Denmark," he said.
Singhvi further continued by raising jurisdictional objections regarding the present court’s authority to try the case.
On July 3, Raju argued that the Gandhis were the “beneficial owners” of Young Indian and acquired total control after the death of other shareholders.
The ED filed its chargesheet against the Gandhis and others under Sections 3 (money laundering) and 4 (punishment for money laundering) of the Prevention of Money Laundering Act (PMLA). Other names on the chargesheet include Dudey, Pitroda, Sunil Bhandari, Young Indian, and Dotex Merchandise Private Limited.
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