Financial probe agency’s credibility is at stake

Amid the Opposition’s allegation that government agencies such as the Enforcement Directorate (ED) are being misused, the Centre has told the Rajya Sabha that raids carried out by the ED during 2014-2022 saw a nearly 27-fold increase as compared to the searches conducted between 2004 and 2014, when the Congress-led UPA was in power. The ruling NDA has attributed the surge to its ‘commitment to prevent money laundering’ and ‘improved systems for gathering financial intelligence as well as better inter-agency cooperation.’ It is commendable that the Centre’s twin purposes — disposing of pending investigation in old cases and completing the probe in new cases in a time-bound manner under the Prevention of Money Laundering Act (PMLA) — have led to 3,010 searches in the past eight years, resulting in the attachment of proceeds of crime to the tune of about Rs 99,356 crore and the filing of prosecution complaints in 888 cases. What’s worrying is the poor rate of conviction. Only 23 accused persons/entities have been convicted during this period, clearly pointing to investigative lapses and legal loopholes. The ED’s failure to build airtight cases in most instances gives room to allegations of ulterior motive and settling of political scores. It can’t be mere coincidence that these searches are largely confined to non-BJP-ruled states. The ED also owes an explanation for going slow in the Kerala gold smuggling case, which came to light in July 2020. It’s only now that the agency has approached the Supreme Court to seek transfer of the case to Karnataka; the long delay gave rise to speculation that political convenience prompted the Centre to spare the Congress’ arch-rival in Kerala.

With the apex court backing the ED’s powers under the PMLA and upholding the constitutional validity of provisions dealing with the arrest and attachment of property of persons involved in money laundering, it has become even more important for the premier financial probe agency to ensure that its credibility is not undermined. The directorate’s functioning must be above board and the notion that it adopts a pick-and-choose approach should be firmly dispelled by letting it act freely and fairly.

(Tribune, India)