Centre seeks Supreme Court order for further extension to ED chief in view of FATF review

The Centre has approached the Supreme Court seeking its permission to extend the tenure of Enforcement Directorate chief Sanjay Kumar Mishra – who was asked by the court to demit office by July 31 – till October 15, 2023, in view of the ongoing Financial Action Task Force (FATF) review, which is at a critical stage.

The government said it was essential to have at the helm a man who was involved in the review of Financial Action Task Force since 2020.

Also Read | Ponder over SC ruling on ED chief extensions

In its July 11 judgement, the Supreme Court had declared the two extensions of one year each granted to current ED Chief IRS officer Mishra as illegal and but allowed him to continue to the post till July 31, 2023 in order to ensure the smooth transition in the larger public interest.

Wow! Just Wow! After all his 3 extensions have been held to be illegal, & he was still given almost another month to wind up, the govt files another application seeking extension of ED Director! Absurd! https://t.co/m7c8VGIXBo

— Prashant Bhushan (@pbhushan1) July 26, 2023

Solicitor General Tushar Mehta mentioned the application before a bench led by Justice B R Gavai which fixed the plea for hearing on Thursday.

In an application, the Union government said it is essential to have an individual who is well-acquainted with the overall status of money laundering investigations and proceedings across the country and also the intricacies of the procedures, operations and activities of the investigating agency, at the helm of affairs at the Directorate of Enforcement.

"This is necessary to ensure that the assessment team can be promptly and ably assisted with necessary reports, information, statistics etc. Any transition in leadership at the Directorate of Enforcement at this stage, would significantly impair the ability of the agency to provide necessary assistance to and co-operation with the assessment team and thereby adversely impact India's national interests," it said.

The present Director, Directorate of Enforcement has been engaged in preparation of documents and other requirements for mutual evaluation of India since beginning of year 2020, accordingly, his continuation in this arduous and delicate process is essential, it contended.

The plea also pointed out FATF review is at a critical stage where submissions on effectiveness have been made on July 21, 2023 and on-site visit is scheduled to be conducted in November, 2023.

The Financial Action Task Force or the FATF is an inter-governmental body which has developed its recommendations to prevent and combat money laundering and terror financing. About 200 countries/jurisdictions, including India, have committed to implement these standards.

India is being assessed in the fourth round of mutual evaluation, it pointed out.

"Since Enforcement Directorate is the only money laundering agency in India, its role in presentation of effectiveness of anti-money laundering provision and administration before the assessor is very significant and important from a national interest perspective. The positive outcome of mutual evaluation is essential for every country because any adverse report will invite several international sanctions," it said.

In its July 11, 2023 decision, the top court had found Mishra was granted extension on November 17, 2021 and November 17, 2022 for a period of one year each, in contravention of a mandamus issued in its previous judgement in the Common Cause case on September 8, 2021.

The court, however, had then rejected a challenge to validity of the Central Vigilance Commission (Amendment) Act, 2021 and the Delhi Special Police Establishment (Amendment) Act, 2021, allowing extension of heads of the Enforcement Directorate and the CBI respectively upto a cumulative period of five years.