Supreme Court Declares Third Extension of Probe Agency Chief’s Term Illegal, Orders Appointment of New Chief

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In a significant ruling today, the Supreme Court declared the third extension of Sanjay Kumar Mishra’s tenure as the Chief of the Enforcement Directorate (ED) illegal. However, the court granted him permission to continue in his position until July 31, after which the government must appoint a new chief for the probe agency. The court cited a judgment from 2021, stating that Mishra’s extended term violated its mandate.

The decision comes as a setback to the government, which had repeatedly extended Mishra’s tenure and defended its actions by citing the ongoing peer review by the Financial Action Task Force (FATF), the global terror financing watchdog. The Centre had argued that Mishra’s continuity was necessary during the review process.

While acknowledging the concerns raised by the Centre regarding continuity, the Supreme Court emphasized that Mishra’s extended tenure violated the previous judgment. The court urged the government to appoint a new chief for the probe agency after July 31.

Sanjay Kumar Mishra was appointed as the Enforcement Directorate’s chief in November 2018 and was originally set to retire two years later upon turning 60. However, the government granted him an extension in November 2020, which was followed by two more extensions. Mishra’s repeated extensions had drawn criticism from the opposition, accusing the government of misusing the Enforcement Directorate and the Central Bureau of Investigation (CBI) to target political rivals.

The Supreme Court also addressed the amendments made to the Central Vigilance Commission Act and the Delhi Special Police Establishment Act, which allow the Centre to extend the terms of probe agency chiefs by up to five years. The court upheld the validity of these amendments, stating that extensions could be granted in the public interest with sufficient reasons provided in writing.

In a peer review conducted by the FATF, countries are assessed based on their efforts to combat terror financing and money laundering. Officials assert that Mishra’s presence during the review process was crucial, considering the important investigations related to money laundering that he has been overseeing.

As the government prepares to appoint a new chief for the Enforcement Directorate, the decision is expected to be closely watched by various stakeholders. The case highlights the significance of adhering to legal mandates and ensuring the independence of investigative agencies.

It remains to be seen how the government will proceed with the appointment of a new chief for the probe agency and address concerns related to continuity and ongoing investigations.

Sources By Agencies

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