National Herald case: Why special court ruled against ED.
In a significant development on December 16–17, 2025, a Delhi special court refused to take cognisance of the Enforcement Directorate’s (ED) prosecution complaint under the Prevention of Money Laundering Act (PMLA) in the long-running National Herald money-laundering case involving Sonia Gandhi, Rahul Gandhi, and others. This ruling effectively blocked the ED from starting formal money-laundering proceedings based on its latest chargesheet, dealing a setback to the federal agency’s legal strategy. The Week+1
The National Herald case stems from allegations that key Congress leaders, through a private company called Young Indian, acquired control of Associated Journals Limited (AJL) — publisher of the National Herald newspaper — and its assets worth allegedly over ₹2,000 crore by converting a loan of about ₹90 crore into equity shares. ED argued this transfer amounted to a criminal conspiracy and money laundering because the transaction allegedly benefited the accused unfairly and disadvantaged AJL’s shareholders. The Indian Express
However, in its detailed 117-page order, the special court led by Judge Vishal Gogne held that the ED’s prosecution complaint was not maintainable under law. One of the key legal reasons was that the case was primarily based on a private complaint filed years earlier by political figure Subramanian Swamy, and not on a formal First Information Report (FIR) lodged by a law-enforcement agency for a predicate offence — a core requirement under the PMLA. Under the Act, money-laundering charges must flow from underlying criminal allegations recognized as scheduled offences, typically initiated via an FIR. The court said that without such a predicate FIR, there was no lawful foundation to take cognisance of ED’s complaint. National Herald+1
The ruling pointedly emphasized that a prosecution under the PMLA requires clear demonstration of “proceeds of crime” stemming from a scheduled offence — a threshold the court found absent because the ED’s chargesheet relied on a magistrate’s summoning order from the private complaint rather than a registered FIR. It also noted that while the Delhi Police’s Economic Offences Wing has since registered an FIR in the broader National Herald matter, it was premature to base the ED’s money-laundering prosecution on that. The Tribune
Politically, the verdict has sparked sharp reactions. The Congress party hailed the judgment as a legal and moral victory, claiming it exposed alleged misuse of central investigative agencies for political ends. The party’s leadership argued that the court’s findings highlighted lack of legal basis as well as political motivation behind the ED’s pursuit. Conversely, critics argued the judicial process must be respected and that investigations should continue within lawful parameters. The Times of India+1
While the court’s ruling in December 2025 limits the ED’s immediate legal recourse in this iteration of the case, it does not amount to an acquittal. The ED has indicated it may appeal the decision in a higher court. Hence, the legal saga of the National Herald case continues to unfold, with both legal and political implications for India’s justice system and governance. hindustantim
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