'Can't Act Like Crook': Supreme Court Slams ED Over Low Convictions
The bench also raised serious concerns about prolonged incarceration during pending investigations and trials.
The Supreme Court on Thursday questioned the Enforcement Directorate (ED) for its low conviction rate under the Prevention of Money Laundering Act (PMLA). The apex court said that the agency 'cannot act like a crook".
The remarks by the Supreme Court cam during two different hearings by separate benches of the Supreme Court. The court reviewed matters concerning the legitimacy and execution of the PMLA. Both benches voiced concerns about the Enforcement Directorate's investigative practices, extended timelines, and notably low rate of convictions.
In the first case, a bench headed by Chief Justice of India Bhushan R Gavai was hearing review petitions challenging its earlier ruling from May 2 in the Bhushan Power & Steel Limited (BPSL) insolvency case. That ruling had ordered the company's liquidation and rejected the resolution plan submitted by JSW Steel. However, the verdict has since been withdrawn, and the review petitions are now being reconsidered.
During the hearing, the Enforcement Directorate's handling of the BPSL case came under scrutiny. This led to a tense exchange between the bench—which also included Justices Satish Chandra Sharma and K Vinod Chandran—and Solicitor General Tushar Mehta, who was representing the ED.
In response, Solicitor General Tushar Mehta defended the Enforcement Directorate by highlighting the agency's financial recoveries. 'Let me tell a fact which was never said before in any court — ED has recovered Rs 23,000 crore and given it to the victims," he stated, stressing that the funds do not remain with the government but are returned to those defrauded.
'In some of the cases where politicians were raided and cash was found, our machines stopped functioning due to the volume of money… we had to bring in new machines," Mehta further defended.
CJI, however, mentioned that judges don't decide matters on narratives.
'I don't see news channels. I only read headlines in newspapers for 10 to 15 minutes in the morning," he said.
In a second and separate hearing, a three-judge bench comprising justices Surya Kant, Ujjal Bhuyan and N Kotiswar Singh said that ED cannot act like a crook. The remarks came while the court was hearing review petitions against the 2022 judgment in the Vijay Madanlal Choudhary case.
'You cannot act like a crook. You have to work within the four corners of the law," said the bench.
'There is a difference between law-enforcing authorities and law-violating bodies. See what I observed in one of the cases….it came true in what a minister said in Parliament. After 5,000 cases, less than 10 convictions… That's why we insist improve your investigation, witnesses…we are talking about liberty of people," the bench. Justice Bhuyan added.
The bench also raised serious concerns about prolonged incarceration during pending investigations and trials. Addressing Additional Solicitor General SV Raju, who appeared for the Enforcement Directorate, it remarked, 'We are equally concerned about the image of ED also. At the end of five-six years of judicial custody, if people are acquitted, who will pay for this?"
Previously, in the Vijay Madanlal ruling, the Supreme Court had upheld several contentious provisions of the Prevention of Money Laundering Act (PMLA). These included the ED's authority to arrest, conduct searches and seizures, impose a reverse burden of proof, withhold the Enforcement Case Information Report (ECIR), and enforce strict bail conditions.
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