ED must work within law: SC slams low convictions

IN SEPARATE ORDERS, TWO TOP COURT BENCHES RAISED CONCERNS OVER METHODS ADOPTED BY ED, ITS PROLONGED INVESTIGATIONS AND ITS LOW CONVICTION RATE

- Utkarsh Anand and Abraham Thomas

The Supreme Court on Thursday delivered two separate critiques of the Enforcement Directorate (ED), questioning not only its low conviction rate under the Prevention of Money Laundering Act (PMLA), but also its functioning and sweeping powers, with one bench sharply remarking that the agency “cannot act like a crook” and must operate within the bounds of law.

In two separate hearings, two benches of the top court heard matters linked to the constitutional validity and implementation of PMLA. Both benches raised concerns over ED's methods, its prolonged investigations and its disproportionately low conviction rate.

In the first case, a bench led by Chief Justice of India Bhushan R Gavai was hearing review petitions related to its May 2 judgment in the Bhushan Power & Steel Limited (BPSL) insolvency matter, which had ordered liquidation of the company and set aside the resolution plan submitted by JSW Steel.

That verdict has since been recalled, and the review petitions are being heard afresh.

During the course of the hearing, ED’s functioning and its probe into the BPSL matter came under discussion, prompting a sharp exchange between the bench, also comprising justices Satish Chandra Sharma and K Vinod Chandran, and solicitor general Tushar Mehta, who appeared for the agency.

“What is the conviction rate?” asked CJI Gavai, alluding to the broader question of whether ED’s outcomes justify its expansive powers under PMLA.

Mehta admitted that conviction rates were indeed low, but attributed this to endemic flaws in the criminal justice system, such as delays and procedural inefficiencies. “Conviction rates are low even in other penal offences,” he submitted.