The Delhi High Court on Monday declined to pass an interim order restraining Associated Journals Limited (AJL) from seeking the release of its properties attached under the Prevention of Money Laundering Act (PMLA) in the National Herald case. Justice Sachin Datta, hearing a petition filed by the Enforcement Directorate (ED), said the court was not granting any interim relief at this stage.

Additional Solicitor General SV Raju, appearing for the ED, submitted that AJL was relying on a trial court order—which had refused to take cognisance of the ED’s money laundering complaint—to pursue the release of attached properties before the PMLA Appellate Tribunal. “They are making use of this order to get the properties released,” Raju told the court. The ED has attached several properties linked to AJL and Young Indian, including the Herald House on Bahadur Shah Zafar Marg near ITO in Delhi.

Justice Datta, however, declined to intervene. When Raju suggested that the parties could seek an adjournment before the tribunal until the next High Court hearing, the judge replied: “I am not saying anything,” adding that, as things stood, the parties were not accused in the proceedings before the court. The High Court has listed the matter for further hearing on November 2.

No Interim Relief for ED

The ED’s challenge stems from a December 2025 order by Special Judge Vishal Gogne of Rouse Avenue Courts, which had refused to take cognisance of the agency’s prosecution complaint against Congress leaders Sonia Gandhi and Rahul Gandhi, Young Indian, AJL and other accused. The trial court had held that the complaint was not maintainable because it was founded on a private complaint filed by BJP leader Subramanian Swamy under Section 200 CrPC, rather than a first information report (FIR) relating to a scheduled offence under PMLA.

The ED had argued that the acquisition of control over AJL—the publisher of the now-defunct National Herald newspaper—by Young Indian Private Limited (YIL) in 2010 amounted to money laundering. According to the agency, YIL, in which Sonia Gandhi and Rahul Gandhi held a majority stake, acquired AJL's debts from the Indian National Congress for ₹50 lakh and subsequently took control of assets valued at over ₹2,000 crore. The ED initiated investigation in 2014, alleging that the transactions were part of a scheme to misappropriate AJL's assets for personal gain.

Trial Court’s Cognizance Refusal at Centre of Dispute

The trial court’s December order dealt a significant blow to the ED’s case, as it held that the money laundering proceedings were not based on an FIR, but on a summoning order issued on a private complaint. The ED had filed a fresh prosecution complaint under sections 44 and 45 of PMLA, alleging offence of money laundering under section 3 read with section 70. However, the trial court found that the predicate offence—the scheduled offence under PMLA—was missing, rendering the complaint invalid.

The ED has now challenged that order before the Delhi High Court. During Monday’s hearing, the agency sought to prevent AJL from using the trial court’s order to secure the release of attached properties, fearing that such a move would undermine the investigation. The High Court’s refusal to grant an interim order means that AJL remains free to pursue its application before the PMLA Appellate Tribunal, though the final outcome will depend on the tribunal’s decision and the High Court’s eventual ruling on the ED’s petition.

Background of the National Herald Allegations

The case revolves around the 2010 acquisition of AJL, the publisher of the National Herald newspaper, by Young Indian, a non-profit company. The Congress party had loaned AJL money over the years, and YIL—whose shareholders included Sonia Gandhi and Rahul Gandhi—acquired AJL's debt for a nominal sum. Critics alleged that the Gandhis used party funds to gain control of AJL's valuable properties, including Herald House in Delhi. The ED has valued the attached properties at approximately ₹661 crore.

The matter has been politically charged, with the Bharatiya Janata Party accusing the Congress leadership of financial impropriety. Both Sonia Gandhi and Rahul Gandhi have denied any wrongdoing, stating that the transaction was a legitimate restructuring of a debt-laden company. The case has been pending since 2014, with multiple legal challenges.

The High Court’s next hearing on November 2 will see the ED present its arguments on the merits of its appeal against the trial court’s order. Until then, AJL’s petition before the PMLA Appellate Tribunal remains a live issue, and the attached properties—including the iconic Herald House—are at stake in the parallel proceedings.