New Delhi: The Supreme Court on Thursday said that the Enforcement Directorate (ED) must operate within the bounds of the law and cannot “act like a crook”, as it heard petitions seeking a review of its July 2022 ruling that upheld the agency’s powers under the Prevention of Money Laundering Act (PMLA).
A bench comprising Justices Surya Kant, Ujjal Bhuyan, and N Kotiswar Singh made the observation during the hearing, which focused on the ED’s procedural obligations and its handling of money laundering cases.
Responding to submissions made by Additional Solicitor General SV Raju, Justice Bhuyan said, “You can't act like a crook, you have to act within the four corners of the law.” Raju had argued that investigators often face difficulties when accused individuals flee abroad, citing destinations like the Cayman Islands. “Crooks have a lot of wherewithal, whereas the poor Investigating Officer doesn't,” he said.
The court also took note of the Centre’s recent statement in Parliament that the ED had secured convictions in just eight out of 5,892 money-laundering cases investigated between January 2015 and June 2025, a conviction rate of only 0.1%.
“We are equally concerned about the image of ED also,” the bench said, according to Hindustan Times. “At the end of five-six years of judicial custody, if people are acquitted, who will pay for this?”
In a separate hearing, Chief Justice of India B R Gavai also questioned the ED on prolonged incarceration of accused persons. “Even if they are not convicted, you have been successful in sentencing them almost without a trial for years together,” he remarked.
Solicitor General Tushar Mehta, defending the agency, said the low conviction rate was due to procedural delays and shortcomings in the justice system. He also claimed that the ED had returned over Rs 23,000 crore to victims of financial crimes.
The court is expected to continue examining the legal safeguards surrounding ED’s operations amid rising concerns about due process, detention without conviction, and the overall credibility of the agency.