Speaking on behalf of Sonia Gandhi on Friday, senior advocate Abhishek Manu Singhvi called the Enforcement Directorate's (ED) case in the National Herald case 'truly a strange' and 'unprecedented.' Following the conclusion of arguments by Additional Solicitor General SV Raju, who appeared on behalf of the ED on July 3, he made the comments during his rebuttal in court.
"This case is really peculiar. Stranger than usual. 'Unprecedented,' Singhvi told the court. "Money laundering without property, without the use or projection of property, is the alleged case here."
The Enforcement Directorate has charged Suman Dubey, Sam Pitroda, a private company called Young Indian, Sonia Gandhi, Rahul Gandhi, and other prominent members of the Congress, including the late Motilal Vora and Oscar Fernandes, with criminal conspiracy and money laundering. The case concerns the purported fraudulent purchase of properties belonging to Associated Journals Limited (AJL), the National Herald newspaper's original publisher, valued at over ₹2,000 crore.
The Gandhis allegedly usurped AJL's assets through Young Indian, in which they owned a majority 76 per cent stake, according to the ED. According to the agency, this was accomplished by Young Indian acquiring AJL's debt through a loan of ₹90 crore, thereby granting Young Indian authority over AJL's assets.
In response, Singhvi said that the goal was to make AJL debt-free, which is a valid corporate restructuring strategy. "Every company is entitled by law and uses a variety of instruments every day to make their companies debt-free," Singhvi stated. Thus, you remove the debt and transfer it to a different organisation. Thus, this business is debt-free.
He also emphasised that Young Indian was a not-for-profit business, which is legally prohibited from giving its members access to assets or profits. It is unable to provide dividends, benefits, salaries, or bonuses. It can give nothing,” Singhvi said, arguing that this negates the allegation of personal financial gain by the accused.
Also Read: ED alleges Sonia, Rahul Gandhi benefited ₹142 Cr in Herald case
Singhvi criticised the ED's strategy, claiming that the agency was inactive for years before reviving the case after receiving a private complaint. "They are obviously people associated with the Congress," he added in reference to the case's political overtones. It would be worse than Hamlet without the Prince of Denmark to have the National Herald in an organisation unrelated to the Congress.
Although the details of Singhvi's arguments were not made public, he also argued against the court's jurisdiction to try the case in addition to defending the nature of the transactions. ASG SV Raju had argued on July 3 that after the deaths of other original shareholders, the Gandhis became Young Indian's "beneficial owners" and took total control of the company. The accused has been charged by the ED in accordance with Sections 3 (money laundering) and 4 (punishment for money laundering) of the Prevention of Money Laundering Act (PMLA).
Suman Dubey, Sam Pitroda, Sunil Bhandari, Young Indian, and Dotex Merchandise Pvt Ltd are also listed on the chargesheet. Given that it concerns one of India's oldest newspapers and some of the top leaders of the Congress party, the case is still being closely watched for its legal, political, and historical significance.
Also Read: National Herald Case: ED flags bogus transfers to Congress firm
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