'ED Can't Act Like A Crook; Must Act Within Corners Of Law' : Supreme Court Judge Flags Low Conviction Rates

The Enforcement Directorate cannot act like a "crook" and has to act "within the four corners of law", said Justice Ujjal Bhuyan of the Supreme Court on Thursday, flagging the low conviction rates in cases under the Prevention of Money Laundering Act.

Pointing out that the conviction rates in PMLA cases were below 10%, Justice Bhuyan said that the Court not only concerned about the liberty of the people but also about the image of the ED.

The bench comprising Justice Surya Kant, Justice Ujjal Bhuyan and Justice NK Singh was hearing the review petitions against the 2022 judgment in the Vijay Madanlal Choudhary case.

During the hearing, Additional Solicitor General SV Raju that there was no obligation to supply a copy of the ECIR to the accused. The ASG further submitted that the investigators are handicapped because the main accused flee to locations like Cayman's Islands and the investigation hits a roadblock.

"Crooks have a lot of wherewithal, whereas the poor Investigating Officer doesn't," ASG said.

In response, Justice Bhuyan said.

"You can't act like a crook, you have to act within the 4 corners of the law. I observed in one court proceedings, you have registered about 5000 ECIRs. Conviction is less than 10%...That's why we insist -improve your investigation, witnesses...we are talking about the liberty of people. We are concerned about ED's image also. At the end of 5-6 years of judicial custody, if people are acquitted, who will pay for this."

ASG however maintained that the acquittals are very less in PMLA cases. He said that trials in PMLA cases get delayed as influential accused employ a battery of lawyers who file applications after applications at different stages to protract the proceedings. The Union's law officer added that investigators are also "terribly handicapped."

Incidentally, another bench of the Supreme Court, led by the Chief Justice of India, also today questioned the conviction rates in ED cases. CJI BR Gavai observed that even if convictions were not secured ultimately, the ED has been "successful" in "sentencing" persons by keeping them in jail without trial for years.

Last year, while hearing another case, Justice Bhuyan had pointed out that out of 5000 odd cases registered under PMLA, conviction has been obtained only in 40 cases in ten years.

The bench today heard the preliminary objections raised by the ASG who argued that the review petitions were "appeals in disguise." He argued that the petitioners were attempting to seek a rewriting of the Vijay Madanlal Choudhary judgment. A different interpretation or viewpoint of a judgment cannot be an "error apparent on the record" so as to warrant a review. The ASG also stressed that the Supreme Court had issued notice on the review petitions on two limited points. 

Live updates from the hearing can be followed here.

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