National Herald case: ED issues notices to take possession of assets in Cong-linked AJL
New Delhi, Apr 12 (PTI): The Enforcement Directorate Saturday said it has served notices to take possession of immovable assets worth Rs 661 crore that it had attached as part of a money laundering probe linked to Congress-controlled National Herald newspaper and the Associated Journals Limited (AJL).
The federal probe agency said in a statement that it has served the relevant documents to the respective registrar of properties where the assets are located.
Simultaneously, the notices have been affixed at "conspicuous part of these properties" located at Herald House at ITO (5A, Bahadur Shah Zafar Marg) in Delhi, in the Bandra(E) area (Plot No 2, Survey No 341) of Mumbai and the AJL building located at Bisheshwar Nath Road (Property No.1) in Lucknow, Uttar Pradesh, on Friday.
The notices primarily seek vacation of the premises to be taken over by the ED.
"A notice... has also been served to Jindal South West Projects Limited which occupies the 7th, 8th, and 9th floors at Herald House, Bandra (E), Mumbai, to transfer the rent/lease amount every month in favour of the director, Directorate of Enforcement," it said.
The action has been taken under Section (8) and Rule 5(1) of the Prevention of Money Laundering Act (PMLA) that talks about the procedure of taking possession of assets attached by the ED and then confirmed by the adjudicating authority (of the PMLA).
These immovable assets worth Rs 661 crore, apart from shares of AJL worth Rs 90.2 crore, were attached by the ED in November 2023 to "secure the proceeds of crime and to prevent the accused form dissipating the same."
The Adjudicating Authority confirmed this order in April last year. According to the ED, the total "proceeds of crime" in the case was Rs 988 crore.
The Congress had earlier termed the investigation "petty vendetta tactics" and dubbed the ED a "coalition partner" of the BJP.
The ED investigation began in 2021 after the Metropolitan Magistrate at Patiala House Courts in Delhi took cognisance of a private complaint filed by BJP leader Subramanian Swamy on June 26, 2014.
The complaint, the ED said, highlighted a "criminal conspiracy" by several prominent political figures, including the first family of the Congress party led by Sonia Gandhi, her MP son Rahul Gandhi, apart from late Congress leaders Motilal Vora and Oscar Fernandes and also Suman Dubey, Sam Pitroda and a private company Young Indian for alleged involvement in a money laundering scheme related to the fraudulent takeover of properties valued over Rs 2,000 crore belonging to the AJL.
"The legal proceedings against the accused have faced challenges but have been upheld by both the Delhi High Court and the Supreme Court of India, allowing the investigation to proceed," the ED said.
AJL is the publisher of the National Herald news platform (newspaper and web portal) and it is owned by Young Indian Private Limited.
Congress leaders Sonia Gandhi and Rahul Gandhi are majority shareholders of Young Indian with 38 per cent shares held by each one of them. They were questioned for hours by the ED in this case a few years back.
The ED claimed its investigation has "conclusively" found that Young Indian, a private company "beneficially owned" by Sonia Gandhi and Rahul Gandhi, "acquired" AJL properties worth Rs 2,000 crore for a mere Rs 50 lakh, significantly undervaluing its worth.
"Young Indian and AJL properties were used for generation of further proceeds of crime in the form of bogus donations to the tune of Rs 18 crore, bogus advance rent to the tune of Rs 38 crore and bogus advertisements of Rs 29 crore," the ED has alleged.
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SC reconstitutes three-judge bench to hear pleas against 2022 verdict upholding ED powers
New Delhi, May 4 (PTI): The Supreme Court has reconstituted a three-judge bench to decide if its 2022 verdict upholding the Enforcement Directorate's powers to arrest and attach property under the Prevention of Money Laundering Act needs reconsideration.
The reconstituted bench of Justice Surya Kant, Justice Ujjal Bhuyan and Justice N Kotiswar Singh will take up a batch of petitions seeking a review of the 2022 verdict.
The matter is listed for hearing on May 7.
Earlier, a bench of Justice Kant, Justice Bhuyan and Justice CT Ravikumar was hearing the matter.
Justice Ravikumar superannuated on January 5.
On March 6, after the pleas were listed before a two-judge bench, Justice Kant told the lawyers appearing in the matter that it was wrongly listed and assured them that a new three-judge bench would shortly take up the issue.
The top court in July 2022 upheld the Enforcement Directorate's (ED) powers of arrest and attachment of property involved in money laundering, search and seizure under the Prevention of Money Laundering Act (PMLA).
In August that year, the top court agreed to hear pleas seeking review of its verdict and observed that two aspects -- not providing an Enforcement Case Information Report (ECIR) and reversal of the presumption of innocence -- "prima facie" required reconsideration.
Observing it was common the world over that money laundering was a "threat" to the good functioning of a financial system, the apex court upheld the validity of certain provisions of the PMLA, underlining it was not an "ordinary offence".
The top court had said authorities under the 2002 law were "not police officers as such" and the ECIR could not be equated with an FIR under the Code of Criminal Procedure (CrPC).
It had said supply of an ECIR copy in every case to the person concerned was not mandatory and it was enough if the ED, at the time of arrest, disclosed the grounds for it.
The verdict came on a batch of more than 200 petitions filed by individuals and other entities questioning various provisions of the PMLA, a law the opposition often claims is weaponised by the government to harass its political adversaries.
Section 45 of the PMLA, which deals with offences to be cognisable and non-bailable and have twin conditions for bail, is reasonable and does not suffer from the vice of arbitrariness or unreasonableness, the top court had said.
