'Even If Not Convicted...': Supreme Court Jabs Probe Agency On Conviction Rate

The Enforcement Directorate's conviction rate - 0.1 per cent of 5,892 money laundering cases filed in the first six months of this year - has been red flagged, again, by the Supreme Court.

The court also took a shot at the federal agency's habit of incarcerating suspects for extended periods while they try to build a case - a habit called out by the opposition - and said, "... and even if they are not convicted, you have been successful in sentencing them almost without a trial for years together."

The stinging reprimand came as a Chief Justice BR Gavai-led bench was reviewing a May judgement on JSW Steel's acquisition of Bhushan Power and Steel Ltd, or BPSL.

The court had then said JSW's resolution plan for BPSL was "illegal".

But in July that verdict was recalled after petitions filed by both sides, as well as public lenders like the State Bank of India; the court said certain facts had to be reconsidered.

However, it was sharp observations on the efficacy of the ED that raised eyebrows.

The topic came up when a lawyer referred to the agency's investigation into BPSL.

To this the Chief Justice quipped, "Here also the ED is there?"

Appearing for the agency, Solicitor General Tushar Mehta complained of a "narrative being built on YouTube" (against the ED and its investigation timelines), and pointed to what he said was a little-known fact - that it had recovered Rs 23,000 crore in laundered cash.

"In some cases, when politicians are raided and cash was found, our (cash-counting) machines stopped functioning... we had to bring new machines," he declared.

The court, however, reminded the Solicitor General it does not "decide matters on narratives". "I don't see news channels... I see headlines in newspapers in the morning for 10-15 minutes only," the Chief Justice responded, and seized on a more pertinent point.

"What is the conviction rate?" the Chief Justice asked. Mr Mehta acknowledged that conviction rates are 'very low' but blamed 'ills plaguing the criminal justice system'.

The Chief Justice then shot back, "Even if they (suspects in money laundering cases) are not convicted you have been successful in sentencing them almost without a trial for years..."

The exchange follows different benches of the Supreme Court criticising the 'high-handedness' of the ED, particularly in money laundering cases involving opposition leaders.

In March the government told Parliament - as the ED was grilling RJD patriarch Lalu Prasad Yadav - that the agency's decadal conviction rate for cases against politicians is 1 per cent.

In fact, last year there were multiple instances in which the Supreme Court hauled up the ED over its handling of cases, including telling it it cannot "keep filing chargesheets to keep people in jail".

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That rebuke was delivered by then-Chief Justice Sanjiv Khanna after the ED filed supplementary chargesheets to claim denial of bail to an accused jailed for 18 months.

The court made a similar observation in April the year before; Justice Krishna Murari and Justice CT Ravikumar said, "Without completing investigation, a charge sheet cannot be filed by an investigating agency only to deprive an arrested accused of his right to default bail..."

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These mattes came to a head in a furious political row over the arrest and incarceration of AAP leaders Arvind Kejriwal and Manish Sisodia in the alleged liquor policy scam case.

Both were jailed for months before being given bail by the Supreme Court.

The opposition has repeatedly criticised the government over its use, they say, of federal investigative agencies like the ED to 'target and harass' rival politicians, particularly before elections.

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In response, the ruling BJP has just as repeatedly denied such claims, and said each investigative agency works independently towards its goal of rooting out all corruption.