Supreme Court Criticizes Enforcement Directorate Over Low Conviction Rate in Money Laundering Cases

In a stern rebuke to the Enforcement Directorate (ED), the Supreme Court highlighted the agency’s poor track record in securing convictions under the Prevention of Money Laundering Act (PMLA). During a hearing on Wednesday, the Court observed that only 40 convictions had been achieved out of 5,000 cases, questioning the ED’s reliance on witness statements rather than scientific evidence. The Court criticized the quality of prosecution, emphasizing the need for stronger evidence in serious cases that impact the nation’s economy.

The Court’s scrutiny came in the context of a special leave petition involving Chhattisgarh businessman Sunil Kumar Aggarwal, who had been granted interim bail in a case related to alleged illegal levies on coal transportation. Justices Surya Kant, Ujjal Bhuyan, and Dipankar Datta questioned the sustainability of Aggarwal’s arrest under Section 19 of the PMLA, highlighting concerns about the ED’s burden of proof and the reliance on oral evidence.

The judges’ observations are particularly notable as they are part of a special bench reviewing the Supreme Court’s 2022 verdict on the PMLA, including its arrest and attachment powers. The bench had initially planned to hear review petitions on Wednesday but adjourned the matter to August 28 to allow the Solicitor General more time to prepare. The ED has faced criticism for its conviction rate, with recent data revealing that, out of over 5,200 cases registered since 2014, only 40 have resulted in convictions.

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