Money laundering case sans any property or projection of it: Sonia Gandhi argues in National Herald case

The case pertains to money laundering charges over the fraudulent takeover of properties valued over Rs 2,000 crore belonging to the Associated Journals Limited, which published National Herald.

New Delhi: Senior advocate Abhishek Manu Singhvi representing Congress leader Sonia Gandhi on Friday argued that Enforcement Directorate's National Herald case was "truly a strange" one.

Singhvi began his rebuttal after additional solicitor general S V Raju for ED on July 3 concluded his arguments on the point of cognisance of the chargesheet filed in the case.

"This is truly a strange case. More than strange. Unprecedented. This is an alleged case of money laundering, without any property, without use or projection of property," Singhvi argued.

The ED has accused Sonia and Rahul Gandhi, late Congress leaders Motilal Vora and Oscar Fernandes aside from Suman Dubey, Sam Pitroda and a private company Young Indian of conspiracy and money laundering over the fraudulent takeover of properties valued over Rs 2,000 crore belonging to the Associated Journals Limited (AJL), which published National Herald newspaper.

ED alleges Gandhis held the majority 76 per cent shares in Young Indian, which fraudulently usurped assets of AJL, in exchange for a Rs 90 crore loan.

Singhvi, however, submitted that the exercise was undertaken to make AJL debt free.

"Every company is entitled under law and does, every day, make their companies get free by a variety of instruments. So you take away the debt and assign it to another entity. So this company becomes debt free," Singhvi said.

He said that Young Indian was a not-for-profit company.

"Means it cannot give dividends, it cannot give perks, it cannot give salaries, it cannot give those bonuses. It can give nothing," the senior lawyer argued.

Singhvi said the ED did not do anything for several years and instead picked up a private complaint.

"They are, obviously people associated with the Congress. To have the National Herald in a body not associated with the Congress would be worse than having Hamlet without the Prince of Denmark," he said.

Singhvi continued by mentioning the grounds on which the present court did not have the jurisdiction to try the case.

On July 3, Raju argued on the point of chargesheet's cognisance, saying the Gandhis were the "beneficial owners" of Young Indian and acquired its total control after the death of other shareholders.

The ED filed its chargesheet against the Gandhis and others under Sections 3 (money laundering) and 4 (punishment for money laundering) of the Prevention of Money Laundering Act (PMLA).

The chargesheet also names Dudey, Pitroda, Sunil Bhandari, Young Indian, and Dotex Merchandise Private Limited.