NEW DELHI: The Centre has filed a plea in the Supreme Court for extension of incumbent Enforcement Directorate chief Sanjay Kumar Mishra till October 15, 2023, saying he was involved since 2020 in the review of Financial Action Task Force, which is at the critical stage at present.
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.
On Wednesday, on behalf of the Union government, Solicitor General Tushar Mehta mentioned the application before a bench headed by Justice B R Gavai.
The court fixed the plea for hearing at 3.30 pm on Thursday
In an application, the Union government said, "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 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, the government said.
"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 application said, The Union of India is compelled to approach this court seeking extension of the date up to 15.10.2023 which the Respondent No. 2 (Mishra) may be permitted to continue in office, in view of the ongoing FATF Review which is at a critical stage where submissions on effectiveness have been made on 21.07.2023 and on-site visit is scheduled to be conducted in November, 2023.
The plea by the Centre stated 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.
