The Enforcement Directorate’s extraordinary powers will once again come under the Supreme Court’s scanner, with the judges agreeing to hear a new batch of petitions challenging them. In July last year, the Supreme Court upheld the powers granted to the Central Agency to search, seize and arrest under the Prevention of Money Laundering Act.
Under the law, the Enforcement Directorate has unusual powers of arrest, search and seizure, seizure of property and bail.
No arrest or search warrants are required and in court it is the suspect’s job to prove his innocence. The agency does not have to share the ECIR (Enforcement Case Information Report) – it would be similar to FIR (First Information Report).
The range of powers, which has been largely criticized by civil society and opposition parties, won approval from the country’s highest court last year.
The court rejected all objections and said the arrests under the money laundering law were “not arbitrary”.
Money laundering not only affects the social and economic fabric of the nation, it also promotes terrorism, drug trafficking and other crimes, the court said, indicating that it was essential to give teeth to the ED.
The opposition has alleged that the central agency is being used by the BJP to control political opponents, creating fear of arrest and intimidation.
Data shows that the agency’s raids in cases of alleged money laundering have increased 26 times under the Modi government, but the number of convictions is low.
In the 3,010 money laundering searches conducted over the past eight years, only 23 suspects have been convicted, the Finance Ministry has said in Rajya Sabha.
The government has said the increased number of searches has led to more seizures. ‘Proceeds of crime’ worth Rs 99,356 crore were seized between 2014 and 2022, while only Rs 5,346 crore was seized between 2004 and 2014, the finance ministry said.
