In a significant move on Thursday, Delhi’s Rouse Avenue Court issued notices to senior Congress leaders Sonia Gandhi and Rahul Gandhi, along with other accused individuals, in connection with the National Herald money laundering case. The court's notice invites them to be heard on the issue of cognisance of the Enforcement Directorate’s (ED) chargesheet—an essential legal step that determines whether the court will formally proceed with the criminal trial.
The court observed that the procedural deficiencies in the earlier version of the chargesheet have now been rectified, thereby clearing the way for judicial scrutiny of the material on record. The matter now turns on the issuance of notice under Section 223 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), the recently enacted criminal procedure code, which allows individuals named in a case to present their side at the cognisance stage. The next hearing in the case has been scheduled for May 8.
The presiding judge emphasized the importance of due process, noting that individuals named in the case are entitled to a "sui generis" right—a unique and foundational legal protection—to be heard before any formal legal proceedings begin. The court held that this provision of the BNSS must be interpreted in favor of the accused, as it strengthens their constitutional right to a fair trial. The court further asserted that this interpretation does not conflict with the Prevention of Money Laundering Act (PMLA) and that it serves to protect the principles of natural justice.
During the proceedings, Additional Solicitor General S.V. Raju, appearing on behalf of the ED, informed the court that the agency does not oppose the issuance of such notices. He added that the ED supports the broader principle of transparency and fairness in legal processes, and sees no harm in allowing the accused an opportunity to make their case at this stage.
Background: The National Herald Case
The case traces back to a complaint filed by BJP leader Subramanian Swamy, who alleged that Sonia Gandhi and Rahul Gandhi, through their control of a private company called Young Indian Pvt Ltd, had unlawfully acquired control over the assets of Associated Journals Ltd (AJL)—the publisher of the historic but now-defunct National Herald newspaper. According to the ED’s chargesheet, Young Indian acquired 99% of AJL's shares by investing only ₹50 lakh, while gaining control over assets reportedly worth more than ₹2,000 crore across India, including prime real estate.
The ED alleges that this amounted to a criminal breach of trust, cheating, and money laundering, and that the transactions were part of a larger conspiracy to misappropriate valuable public and party assets. Alongside Sonia and Rahul Gandhi, the ED has also named veteran Congress figures Sam Pitroda and Suman Dubey, who were directors or involved with AJL during the disputed transactions.
While the Congress Party has repeatedly defended the Gandhis and other leaders, arguing that the transactions were legal and part of a plan to revive the defunct newspaper, political observers see the case as one of the most serious legal challenges faced by the party’s top leadership in recent years.
Legal and Political Significance
The case has taken on immense political significance, not just because of the individuals involved but also due to its potential implications for the Congress Party’s image and electoral prospects. Critics of the ED argue that the case is politically motivated and part of a broader campaign to weaken opposition voices, especially given the upcoming general elections. The ruling BJP has denied these allegations, asserting that the ED is merely fulfilling its legal mandate without bias.
If the court decides to take cognisance of the chargesheet on May 8, the case could move forward toward a full-fledged trial, which would include summons, framing of charges, and witness testimonies. Conversely, the accused have the opportunity to argue for dismissal of the case at this early stage.
The developments underscore the growing tension between India’s central investigating agencies and opposition parties, with the National Herald case emerging as a symbolic flashpoint in this wider confrontation.
