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Monday, December 9, 2024

Any transition in leadership at ED would adversely impact Bharat’s national interests: Govt. to SC

The government has informed the Supreme Court that any transition in leadership at the Enforcement Directorate (ED) would adversely impact Bharat’s national interests in view of the ongoing FATF Review which is at a critical stage as it sought an extension in the present ED chief’s tenure.

“In view of the ongoing FATF Review which is at a critical stage… any transition in leadership at the Directorate of Enforcement at this stage, would significantly impair the ability of the agency to provide necessary assistance to and co-operation with the assessment team and thereby adversely impact India’s national interests,” said the Centre’s application filed before the Supreme Court.

The FATF is an inter-governmental body which has developed its recommendations to prevent and combat money laundering and terror financing. Around 200 countries, including Bharat, have committed to implement these standards. The FATF conducts peer reviews of all its member countries on a regular basis to assess levels of implementation of the FATF recommendations and provide an in-depth description and analysis of each country’s system for preventing criminal abuse of the financial system.

In its plea, the Union government has requested the top court to extend ED chief Sanjay Mishra’s tenure upto October 15, when his term is set to expire on July 31 in accordance with a recent SC judgement.

Earlier on Wednesday, a bench headed by Justice B.R. Gavai agreed to hear the application on Thursday after Solicitor General Tushar Mehta, appearing for the Union government, mentioned the matter for urgent listing.

The apex court posted the matter for hearing at 3.30 p.m.

In a judgement on July 11, the Supreme Court dubbed the extension of ED Director Sanjay Kumar Mishra as “illegal” for violating the mandate of the top court’s judgment in 2021.

However, the top court had allowed him to continue in the post till July 31 taking into consideration the concerns expressed by the Union government with regard to the FATF review and taking into consideration that the process of fresh appointment would take some time.

The court had held that the extension granted to Mishra was contrary to an earlier 2021 judgment rendered by a division bench of the Supreme Court in this regard.

Mishra was first appointed as ED Director for a two-year term in November 2018. His term expired in November 2020 and in May 2020, he had reached the retirement age of 60. However, on November 13, 2020, the Central government issued an office order stating that the President had modified the 2018 order to the effect that a time of ‘two years’ was changed to a period of ‘three years’.

This was challenged before the Supreme Court by the NGO Common Cause. The Supreme Court in a September 2021 verdict approved the modification, but ruled against granting more extensions to Mishra.

After the court’s decision in 2021, the Central government brought in an ordinance amending the Central Vigilance Commission (CVC) Act, giving itself the power to extend the tenure of the ED Director by up to five years. A law was passed by Parliament in this regard allowing extensions to the tenure of the ED Director for one year at a time, subject to a maximum of 5 years.

“Challenge to CVC Act and Delhi Special Police Establishment Act is dismissed to that extent. Extension granted to Sanjay Kumar Mishra after Supreme Court verdict is illegal. However, he is permitted to hold office till July 31, 2023,” the Court ordered on July 11.

(The story has been published via a syndicated feed with minor edits to conform to HinduPost style-guide.)

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