SC questions ED's low conviction rate; CJI Gavai says accused are "sentenced without trial"
A Bench comprising Chief Justice of India (CJI) B.R. Gavai, and Justices Satish Chandra Sharma and Vinod Chandran, made the critical remarks during the hearing of a review petition filed in relation to the Court's earlier order rejecting JSW Steel's resolution plan for Bhushan Power and Steel Limited (BPSL).
"Even if they are not convicted, you (ED) have been successful in sentencing them almost without a trial for years together," CJI Gavai observed, questioning the prolonged incarceration of accused persons despite the absence of convictions.
The observation came after Solicitor General Tushar Mehta, appearing on behalf of the Committee of Creditors (CoC), defended the ED's work by stating that the agency has recovered over ₹20,000 crore and returned it to victims in various cases.
"The matters which come to court are only high-profile matters, there are other matters also," Mehta added, attempting to contextualise the agency's performance.
In response, CJI Gavai sharply asked, "How much is the conviction rate?"
Mehta, while refraining from giving a specific figure, replied, "Conviction is different. Sometimes we wonder how a person was acquitted. Sometimes we have recovered so much money that our machines stop working. We can't give press interviews and YouTube discussions."
To this, the CJI firmly noted, 'The Court does not decide matters based on press reports.'
The exchange highlights growing judicial scrutiny of the Enforcement Directorate's functioning, especially regarding its extensive use of arrest and detention powers under the Prevention of Money Laundering Act (PMLA), in the backdrop of low conviction rates.
The review petition, relating to the resolution of BPSL's insolvency proceedings, remains pending, and the hearing is currently in progress.
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