Supreme Court questions ‘poor’ conviction rate in ED cases

Two separate Benches of the Supreme Court on Thursday (August 7, 2025) questioned the “poor conviction rates” achieved by the Directorate of Enforcement (ED) in money laundering cases, when compared to the number of complaints and arrests made by the Central agency.

Chief Justice of India B.R. Gavai, heading a three-judge Bench hearing a review in the Bhushan Steel-JSW case, said the ED had been “successful” in incarcerating people for years without convictions.

Justice Ujjal Bhuyan, part of another apex court Bench hearing a batch of review petitions against the Prevention of Money Laundering Act (PMLA), said, “Out of about 400 ECIRs you (ED) have registered, less than only 10 have reached conviction.”

“People are in custody for four to five years and finally acquitted. We are equally concerned with the image of the ED,” Justice Bhuyan remarked.

Justice Bhuyan also suggested that the ED improve its investigation methods.

Influential accused persons blamed

Additional Solicitor General S.V. Raju, appearing for the ED, blamed influential accused persons for hampering the “poor investigators”, saying the former park themselves and their money abroad, including in places like the Cayman Islands.

Justice Bhuyan responded that to catch a crook, the investigator could not turn into one. “There is a difference between law-enforcers and persons who violate the law,” the judge replied.

Mr. Raju also said that accused persons delaying the trial by filing repeated applications was another reason. “They do not allow trial to commence. They keep on seeking discharge,” he submitted.

Justice Bhuyan said one cannot blame the law or the Constitution for the delay in ED cases.

Justice Surya Kant intervened to point out that special courts with a dedicated cadre of judges trying money laundering cases under the PMLA may be the solution.