Extension of ED Director was due to FATF review: Centre tells Supreme Court

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The Centre on Monday defended the third extension of service granted to Enforcement Directorate chief Sanjay Kumar Mishra in Supreme Court. The Central Government said that it was done after a peer review was conducted by the Financial Action Task Force (FATF) this year.

"This officer is not some DGP of any state but an officer representing the country in a United Nation like body and is in the midst of something. This court must not interfere with his tenure and from November onwards, he will not be there," Solicitor General Tushar Mehta argued.

He further informed the three judge bench that Mishra had been overseeing some important investigations related to money laundering and it was best that he served till November 2023 for the interest of the nation. "Peer review was scheduled in 2019 but was postponed due to covid," the SG said.

A bench of Justices BR Gavai, Vikram Nath and Sanjay Karol asked the law officer if the serving ED director was indispensable. To this, SG replied, "Leadership matters. Appointment of ED Director is a very rigorous process and a person is selected from a common pool of officers from IAS, IPS, IRS or others and he is to be in the rank of additional chief secretary".

The top court has reserved its verdict on the plea's.

The plea's which have been filed by a number of persons including political leaders from the opposition have also challenged the amendment carried out in law extending the maximum tenure of ED director to five years.

"Arguments heard. Order reserved," the bench said, as it directed the parties to file their written submissions by Friday.

It may be noted that there are 8 petitions filed by several petitioners including Congress leader Dr Jaya Thakur, Saket Gokhale, Congress leader Randeep Singh Surjewala, Krishan Chander Singh, Trinamool Congress MP Mahua Moitra, Vineet Narain, and Advocate Manohar Lal Sharma in this regard.

The Apex Court in its earlier judgment had noted, "Though we have upheld the power of the Union of India to extend the tenure of Director of Enforcement beyond the period of two years, we should make it clear that extension of tenure granted to officers who have attained the age of superannuation should be done only in rare and exceptional cases."

The petitions claimed that the Central Government is using the Enforcement Agencies against the Indian National Congress Party's president and their office bearer.

In November 2021, the Centre had brought in ordinances to extend the tenures of the Chiefs of Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) for up to 5 years.

The government amended the Fundamental Rules, 1922 to bring them in consonance with Central Vigilance Commission Act and the Delhi Special Police Establishment Act.

The amendments extend the tenure of the CBI and ED Chiefs for a maximum period of 5 years including a 2-year fixed term that may be extended “in public interest” by a 3-year term.

Case Title: Mahua Moitra vs. Union of India and Ors. and 7 other petitions