Herald case: AICC attempted to revive AJL, submits Rahul
Calling the probe ‘tainted and malicious’, Senior advocate Cheema questioned the very basis of the ED’s case
Leader of Opposition in the Lok Sabha Rahul Gandhi on Saturday told a Delhi court that the All India Congress Committee (AICC) sought to revive Associate Journals Limited (AJL), which ran the National Herald newspaper, with the objective of promoting democratic ideals and shaping public discourse in line with the party’s vision.
Senior advocate RS Cheema, appearing for Gandhi, made the submission before special judge Vishal Gogne during a hearing on whether the court should take cognisance of the Enforcement Directorate’s (ED) charge sheet in the money laundering case involving the National Herald. The agency has named Rahul and Sonia Gandhi, along with other senior Congress leaders, as accused.
Cheema submitted that Young Indian (YI) — a not-for-profit company in which the Gandhis hold 76% stake — was created to further democratic values and was instrumental in reviving AJL, which once played a vital role in India’s freedom movement.
“Young Indian was formed to propagate the ideals of a democratic society. You are trying to influence thinking and build ideals… YI was trying to revive AJL for this purpose… All this is linked to the publication of a newspaper,” he said.
The submission came a day after senior advocate Abhishek Singhvi, appearing for Sonia Gandhi, had urged the court not to take cognisance of the charge sheet, arguing at length on issues of law and procedure.
Cheema on Saturday argued that the revival effort was backed by the AICC and that it was a legitimate attempt to resuscitate a historically significant institution.
He also countered ED’s interpretation of Section 25 of the Companies Act (now Section 8 under the 2013 Act), asserting that there was no bar on a not-for-profit entity like Young Indian from holding shares in a profit-making company like AJL. “The ED has completely misconceived the application of the Companies Act. They have chosen to ignore settled principles of company law,” the senior lawyer told the court.
Calling the investigation “tainted and malicious,” Cheema questioned the very basis of the ED’s case. “Is the ED treating these private complaints as gospel truth and launching an investigation solely on that basis? They’ve turned a blind eye to the statutory scheme under the Companies Act. This probe is not just flawed, it is driven by malice,” he said.
The senior counsel also raised serious allegations about the timing of ED’s investigation, suggesting it was delayed until the death of senior Congress leader and accused Motilal Vora in December 2020. “ED waited for Vora to pass away. We didn’t try to shift the blame to him, but the man who could have assumed responsibility is no more,” Cheema argued.
On the issue of the maintainability of the ED’s prosecution complaint, Cheema asserted that the precondition for such a complaint under the Prevention of Money Laundering Act (PMLA) is the existence of a scheduled offence, backed by a First Information Report (FIR) or a statutory complaint.
“The offence must be recorded somewhere, either through an FIR or a statutory complaint. Why has no FIR been filed in this case, and on whose directions is this investigation proceeding?” he argued.
Concluding his submissions, Cheema described ED’s allegations against Gandhis and the AICC as “reckless,” insisting that Young Indian had no control over AJL’s movable assets. “Reckless allegations have been made… It is settled law that acquiring shares in a company does not confer any right to the movable assets of that company,” he argued.
In a previous hearing, additional solicitor general SV Raju, appearing for ED, had contended that Sonia and Rahul Gandhi used Young Indian as a vehicle to acquire AJL and its assets, causing massive losses to the shareholders.
The ED’s charge sheet, filed on April 9, alleges that Gandhis, as majority stakeholders in Young Indian, acquired control over AJL’s assets, valued at approximately ₹2,000 crore, by paying just ₹50 lakh to the Congress. It claims the agency has identified proceeds of crime worth ₹988 crore.
Besides Sonia and Rahul Gandhi, ED has also named overseas Congress head Sam Pitroda, former journalist Suman Dubey, and Young Indian Pvt Ltd in the charge sheet.
