The apex Court has directed the Enforcement Directorate (ED) on Wednesday to Improve the “quality” of its prosecution and evidence, which was considered by the Supreme Court of India to be one of the reasons for the agency’s low conviction rate in money laundering cases.
The court emphasized, “You must focus on improving the quality of both prosecution and evidence. In every case where you believe a prima facie case exists, you should present it effectively in court… Out of 5,000 cases filed over the past decade, only 40 have resulted in convictions. Consider that,” stated a bench consisting of Justices Surya Kant, Dipankar Datta, and Ujjal Bhuyan. This comment was made in reference to data on ED cases presented by the Union Ministry of Home Affairs in Parliament.
These observations were made during the hearing of a bail application filed by Sunil Kumar Agrawal, a businessman from Chhattisgarh who was detained in connection with a money laundering investigation involving illegal charges on coal transportation.
The bench critiqued the ED’s reliance on witness statements and affidavits, saying, “In this matter, you are relying heavily on statements from witnesses and affidavits. Such oral evidence… it’s uncertain whether these individuals will maintain their testimony in the future. You should employ scientific methods in your investigations,” the judges advised Additional Solicitor General S V Raju, representing the ED.
Background of the Case In Supreme Court
ED’s investigation for money laundering began with a complaint from the Income Tax Department, following searches conducted in June, 2022. The case involves an alleged scheme where a cartel comprising of top officials, businessmen, politicians and intermediaries were extorting ₹25 per tonne of coal transported in Chhattisgarh illegally.
According to the second supplementary chargesheet filed by the ED, It was alleged that Ranu Sahu who was the Korba collector at that time facilitated collection of these illegal charges from coal transporters and district mineral fund contracts managed by him with Suryakant Tiwari and his associates. Sahu is said to have taken hefty kickbacks for this purpose.
Agrawal, the Chhattisgarh-based businessman, was arrested in connection with the case last year went to the Supreme Court after the Chhattisgarh High Court rejected his interim bail plea on April 8. The Apex Court, on the 19th of May, ordered him to be released on interim bail, contingent on meeting the bail bond conditions. The court ruled on Wednesday, reaffirming its earlier decision, thus, Agrawal’s interim bail was confirmed. Justice Datta Mentioned explained that under Section 19 of the Prevention of Money Laundering Act (PMLA), the officer making the arrest must show “reasons to believe” for the arrest. He asked ASG Raju if the arrest order was appropriate in this situation.
News Resource : Hindustan Times
