‘ED Recovered ₹23,000 Crore Syphoned Money & Distributed It to Victims’: Solicitor General Tells SC In BPSL Review Hearing

Mehta made the statement during an open court hearing before the Special Bench of CJI BR Gavai, Justice Satish Chandra Sharma and Justice K. Vinod Chandran.

The Bench was hearing a batch of review petitions against the Supreme Court’s May 2, 2025 judgment that had ordered liquidation of Bhushan Power & Steel Ltd (BPSL) and set aside JSW Steel's resolution plan for the company. The Court had earlier ruled that the resolution plan violated key provisions of the Insolvency and Bankruptcy Code, 2016 (IBC).

Notably, on July 31, the CJI-led bench had recalled the May 2 verdict and decided to re-hear the matter.

During hearing today, when Senior Advocate Dhruv Mehta appearing for the erstwhile promoters referred to the ED’s probe in the BPSL case, the CJI remarked, “Here also ED is there.”

Responding, the Solicitor General said, “Let me tell a fact, which was never said in any court, ED has recovered ₹23,000 crore syphoned money and given it to the victims.” Mehta clarified that the recovered amount doesn’t remain with the state and is returned to those defrauded in financial crimes.

When asked by the CJI about the ED’s conviction rate, Mehta conceded that it was low, attributing the issue to broader deficiencies in the criminal justice system.

The CJI then remarked, “Even if they are not convicted, you have been successful in sentencing them almost without a trial for years together.”

Mehta also commented on the ED’s raids, particularly those involving political figures. “In some cases, where politicians were raided and cash was found, our machines stopped functioning due to the sheer volume. We had to bring new machines,” he said, adding that social media platforms like YouTube have been used to push narratives when high-profile individuals are investigated.

The CJI responded, “We do not decide matters on narratives. I don’t see news channels. I only glance at newspaper headlines for 10-15 minutes in the morning.”

Mehta acknowledged this, noting that judges do not allow external narratives to influence their decisions.

The Court will continue hearing the matter concerning JSW-BPSL post-lunch.

These remarks come amid ongoing criticism from several benches of the Apex Court over the alleged overreach of the ED in cases involving opposition leaders.

It is to be noted that on July 21, in a separate matter, the same Bench had remarked that the ED was "crossing all limits" after the agency summoned two Senior Advocates for legal advice given during investigations.

In another hearing, the CJI led bench on May 22, had strongly criticised the ED's actions, particularly questioning the agency’s authority to initiate proceedings against a government-owned corporation. Senior Advocate Kapil Sibal had alleged gross overreach by the central agency: “All phones of employees were seized, everything cloned. There is something called privacy. They should have investigated first.” Echoing similar concerns, Senior Advocate Mukul Rohatgi had also representing the State, said, “Every employee’s phone was cloned. This is beyond investigative necessity.” Taking serious note, CJI Gavai had observed, “You may register against an individual, but a Corporation? How can you register? Your ED is passing all limits!"

Case Title: Kalyani Transco v. M/S Bhushan Power and Steel Ltd. 

Hearing Date: August 7, 2025

Bench: CJI BR Gavai, Justice Satish Chandra Sharma and Justice K. Vinod Chandran