National Herald money laundering case: Donors of Congress party are victims, ED argues

New Delhi [India], May 21 (ANI): The Rouse court on Wednesday heard the opening arguements by Enforcement Directorate (ED) on cognisance of its complaint against Congress leader Sonia Gandhi, Rahul Gandhi and other accused in a money laundering case linked with National Herald.
In the opening submissions Additional Solicitor General (ASG) S V Raju submitted that an offence of money laundering in this case is made out in this case. He also submitted that there was a proceeds of crime. It was also submitted that there was continuing criminal activity for generation of proceeds of crime which constitutes the offence of money laundering.
After hearing the opening submitted by ASG S V Raju and Special Counsel for ED Zoheb Hosain, the Special Judge listed the matter for remaining arguments from July 2 to July 8. Special judge Vishal Gogne listed the matter for day-to-day hearing on the point of cognisance of ED's Prosecution complaint against Gandhi and other accused persons.
The court listed the matter in July after hearing the submissions of defence counsel who urged for a hearing in July in view of voluminous documents running to 5000 pages.

During the hearing, the court raised certain queries related to the Shares of AJL (Associated Journal Limited) and whether the company's shareholders are the owners of its assets. The special counsel for ED submitted it by referring to the predicate offence that donors of the Congress party were cheated. They donated to the party. The office bearers gave a loan to a company engaged in commercial activities.
The court asked, "Are wrongful acts ascribed to individuals but not parties (Congress)? Or is the party a victim?
Zoheb Hossain submitted that the Donors of the party are victims. The court also put a query regarding shares, assets. Are assets owned by company or shareholders? Who owns the property as on today? You come back, the Court asked ED's special counsel Hossain.
In simple words, if the property of A is usurped by B, does it become proceeds of crime when it was clean in the hands of A, the Court asked.
Special counsel for ED refered to prosecution complain and submitted that The criminal conspiracy revolves around AJL, Young Indian and AICC. At the outset, ASG S V Raju commenced the arguements on the point of Cognizance of Prosecution complaint filed by the ED against Sonia Gandhi, Rahul Gandhi and others.
Senior advocate Abhishek Manu Singhvi sought time to argue. He said there is a voluminous documents running in 5000 pages. He said that it would be convenient if ASG Raju has time in July.
Special Judge Vishal Gogne said that it is a MP MLA court . Matters are to be heard on weekly basis. Special judge Gogne said the court is now to hear the arguements of ED. Thereafter, the defence counsel can make the submissions.
ED is ready with the submissions and finishing them today, the judge said. ASG Raju said that it is a complaint under PMLA. The complaint is filed under sections 44 and 45 of PMLA , submitted by ASG Raju. He submitted that the Complaint has been filed against seven persons. The accused are Sonia Gandhi, Rahul Gandhi, Sam Pitroda, Young indian and two firms.
During the hearing, the judge asked the ASG if the accused Sam Pitroda had been represented. If he was not represented, you go ahead without him, the court said. ASG submitted that the alleged offence in the Complaint is of money laundering. He said that he will show that the offence of money laundering is made out.
ASG said that there is a proceed of crime. Money laundering is a continuing activity..He said that if an offence is committed of generating proceeds of crime and involves a continuing activity, it is money laundering. ASG Raju said that The attachment of properties took place in November 2023. Till then, the accused were enjoying the proceeds of crime.
Special counsel Zoheb Hosain submitted that the property derived from any criminal activity is a proceeds of crime. Proceeds of crime not only include those properties obtained from the scheduled offence, but also any other criminal activity "relatable" to the proceeds of crime, ED's Special Counsel submitted. He submitted that the Rental income worth Rs. 142 crores received by the accused persons will be included in this.
Dyeing the hearing ASG Raju read an earlier summoning order and submitted that Young Indian was created as a sham or a cloak to convert public money to personal use or as a special purpose vehicle for acquiring control over Rs. 2000 Cr. worth of assets of AJL (Associates Journal Limited) and accused person have allegedly acted in consortium with each other to achieve the said nefarious purpose.
Special counsel Zoheb Hossain submitted that the cognisance of the predicate offence has already been taken. Accused Sonia Gandhi, Rahul Gandhi, Suman Dubey and Sam Pitroda committed breach of trust, Zoheb Hosain submitted. Zoheb Hossain submitted that Gandhis (Sonia and Rahul) owned 76% of Young Indian. He further submitted that by paying Rs. 50 lakhs to AJL, Young indian attained Rs. 90.25 crore. Zoheb Hosain was making submissions on the Offence of cheating.
He said that the Congress party induced the members of the public who donated money as a membership fee and a donation. The office bearers gave a loan to a company engaged in commercial activities. The money was not given for the purpose of giving a loan to a company. Hossain submitted from the ED's Complaint that searches were conducted at various places, Rs. 51 lakh, and other incriminating evidence were seized. He submitted that cognisance of the predicate offence has already been taken by another competent court.

AJL letter to Moti Lal Vohra was also mentioned. In this letter, it was informed that the AJL was not in a position to repay the loan as the publication was suspended. After receiving this letter, a further loan was granted.
The ED has recently filed a Prosecution complaint against Gandhi and others. (ANI)