National Herald Case: Delhi Court Sets Daily Hearings for July

In a significant development in the National Herald case, a Delhi court has announced that daily hearings will be held from July 2nd to 8th.

The Enforcement Directorate (ED), represented by Additional Solicitor General (ASG) SV Raju and Advocate Zoheb Hossain, is seeking to establish that the National Herald case involves proceeds of crime.

ED’s Arguments

The ED argued that not only does Section 3 of the Prevention of Money Laundering Act apply, but also Section 411 of the Indian Penal Code (IPC), which deals with dishonestly receiving or retaining stolen property. They contend that Young Indian, the company at the center of the case, had no legitimate business activities and its shares, assets, and rent represent the proceeds of crime.

Advocate Hossain stated, “Young Indian had no business activity except for continuing for benefit of accused. The shares, assets and rent are the proceeds of crime. The advertisements and loans have kept out…Once the share has been issued, it is a property. The issuance of shares [of AJL] to Young Indian amounts to an offence of cheating.”

Judge’s Queries

The judge inquired about the connection between the alleged wrongful acts and the company’s activities. They questioned whether every action of the company constitutes money laundering or merely criminal activity.

The judge also sought clarification on whether these alleged offenses are attributed to specific individuals and if the Congress party itself is a victim.

Hossain responded, “Not yet. Donors of party are victims.”

Next Steps

The daily hearings scheduled from July 2nd to 8th will likely shed more light on the ED’s arguments and the court’s assessment of the case.