Supreme Court Questions ED’s Conviction Rate

The Supreme Court has raised concerns over the Enforcement Directorate’s (ED) conviction rate, which stands at a mere 0.1% out of 5,892 money laundering cases filed in the first half of this year. The court criticized the agency for detaining suspects for extended periods without securing convictions, effectively sentencing them without trial. This criticism emerged during a review of a previous judgment regarding JSW Steel’s acquisition of Bhushan Power and Steel Ltd (BPSL).

JSW Steel and BPSL Acquisition Under Scrutiny

The Chief Justice BR Gavai-led bench was revisiting a May judgment that declared JSW’s resolution plan for BPSL illegal. However, this verdict was recalled in July after petitions from both parties and public lenders like the State Bank of India, necessitating a reconsideration of certain facts. During this review, the ED’s investigation into BPSL was mentioned, prompting the Chief Justice to question the agency’s involvement.

Solicitor General Defends ED Amid Criticism

Solicitor General Tushar Mehta defended the ED, highlighting its recovery of Rs 23,000 crore in laundered cash and dismissing narratives against the agency on platforms like YouTube. Despite acknowledging the low conviction rates, he attributed them to systemic issues within the criminal justice system. The Chief Justice, however, emphasized that narratives do not influence judicial decisions and reiterated concerns about prolonged detentions without trial.

Political Implications and Ongoing Criticism

The Supreme Court’s remarks come amid ongoing criticism of the ED’s handling of cases involving opposition leaders. In March, the government reported to Parliament that the agency’s conviction rate for political cases over a decade is just 1%. The opposition accuses the government of using federal agencies to target political rivals, a claim denied by the ruling BJP, which insists on independent investigations to combat corruption.