A Delhi court on Tuesday dismissed a money-laundering complaint registered by the Enforcement Directorate against Congress leaders Rahul Gandhi and Sonia Gandhi in the National Herald case, Bar and Bench reported.

Special Judge Vishal Gogne of the Rouse Avenue Court said that the complaint filed by the central agency under the Prevention of Money Laundering Act was not maintainable because the case is based on a private complaint filed by Bharatiya Janata Party leader Subramanian Swamy before a magistrate.

It was not based on a first information report, the judge said, adding that cognisance of the complaint was “impermissible in law”.

The Enforcement Directorate can initiate a money-laundering case only based on an FIR pertaining to an alleged offence mentioned in the Prevention of Money Laundering Act, the court further added.

The judge also said that because the Delhi Police’s Economic Offences Wing had recently registered an FIR in the case, it would be premature to decide on the merits of the allegations made by the Enforcement Directorate.

Gogne also said that the law enforcement agency could make further submissions if it wanted.

The Enforcement Directorate has said it would file an appeal against the order, The Hindu reported.

The allegations

In April 2008, the National Herald newspaper, which was founded and edited by Jawaharlal Nehru before he became India’s first prime minister, suspended operations as it had incurred a debt of over Rs 90 crore.

Swamy filed a complaint against the newspaper in 2012, alleging that Sonia Gandhi and Rahul Gandhi set up an entity named Young Indian to buy the debt using the funds from the party.

The BJP leader alleged that Young Indian paid only Rs 50 lakh to obtain the right to recover Rs 90.2 crore that the Associated Journals Limited owed to the Congress.

The Congress has claimed that there was no money exchange, and that only debt was converted into equity to pay off certain dues including employee salaries.

On October 3, Enforcement Directorate Assistant Director Shiv Kumar Gupta filed a complaint with the Delhi Police alleging government properties originally allotted to Associated Journals Limited at concessional rates for public welfare activities were allegedly “diverted for personal gain”.

The FIR invoked sections of the Indian Penal Code relating to cheating, criminal conspiracy, dishonest misappropriation of property and criminal breach of trust.

It named Sonia Gandhi, Rahul Gandhi, Suman Dubey, Sam Pitroda, Young Indian, Dotex Merchandise Private Limited, its promoter Sunil Bhandari, Associated Journals Limited and other unidentified persons.

The Enforcement Directorate alleged that the case concerns a “serious form of criminal conspiracy and financial fraud”, asserting that Young Indian, which is owned by Sonia Gandhi and Rahul Gandhi, fraudulently took control of Associated Journals Limited properties worth more than Rs 2,000 crore for a “paltry sum” of only Rs 50 lakh.

“The accused persons have exploited these assets by engaging in fraudulent activities such as collecting bogus rents or generating fake revenue through sham advertisements, thereby laundering illicit money under the guise of legitimate transactions,” the complaint had alleged.

In November, the Delhi Police’s Economic Offences Wing registered a fresh FIR based on the Enforcement Directorate’s request under Section 66(2) of the Prevention of Money Laundering Act, which allows the agency to share evidence to enable registration of predicate offences.

On Monday, the court also said that Rahul Gandhi, Sonia Gandhi and the others accused in the matter were not entitled to be given a copy of the FIR registered against them by the Delhi Police, Bar and Bench reported.

Gogne set aside an order passed by a magistrate court in the matter. The judge, however, ruled that the accused may be informed that the FIR had been filed.

‘Truth has prevailed’, says Congress

Commenting on the court’s decision on Tuesday, the Congress said that “truth has prevailed”.

“The malafide and illegality of the [Prime Minister Narendra] Modi government stands fully exposed,” it said on social media. “The court has ruled that the ED case is without jurisdiction, it has no FIR without which there is no case.”

The party said that the “politically motivated prosecution by the Modi government over the last decade, of the principal Opposition party stands exposed before the people of India”.

It added: “No case of money laundering, no proceeds of crime and no movement of property – all baseless charges that have been a part of political witch hunt, propaganda, reputation assassination and campaign which stands defeated today.”

Describing it as the “strangest ever case”, Congress leader Abhishek Singhvi said that the judge did not find it worth even taking cognisance of the Enforcement Directorate’s complaint.

“Great sweet taste of deserved victory #NationalHerald case,” Singhvi said on social media. “…no movement of money, not one inch movement of immovable property, yet per ED huge money laundering in #NH!!”

He added: “Max exaggeration, excessive propaganda and zero truth has become the hallmark of the ruling dispensation.”

Congress leader Ashok Gehlot said that the court’s decision was “proof of the victory of truth over power”.

“We had been saying from the very beginning that this was a false and fabricated case created by the Modi government, aimed only at tarnishing the image of the Gandhi family,” the former Rajasthan chief minister said. “That is why, a few days ago, the ED got an FIR registered with the Delhi Police in this case, because ever since it filed the chargesheet, it knew there was no substance in the case.”

Bharatiya Janata Party Spokesperson Shehzad Poonawalla said that the order was neither a setback for the Enforcement Directorate, nor a relief for Gandhis. “There is no comment on merits of the case,” Poonawalla said on social media.