Supreme Court Allows Limited Extension for ED Director Amidst FATF Review

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New Delhi, July 27, 2023: In a significant development, the Supreme Court has partially allowed the Central government’s plea to extend the tenure of Sanjay Kumar Mishra, the current Director of Enforcement Directorate (ED), until September 15, 2023. The Court, however, made it clear that no further extensions beyond the specified date would be permitted.

The ruling comes after the Central government sought a modification of the Court’s earlier verdict, which had set a deadline of July 31 for appointing a new ED Director. The apex court, in its July 11 judgment, had declared the earlier extension granted to Mishra as illegal, but the government sought an extension till October 15 this year, citing the importance of his presence during the Financial Action Task Force (FATF) review.

The FATF review process, which concludes in November, plays a crucial role in evaluating India’s money-laundering probe operations. The Central government argued that Mishra’s continued leadership was essential to ensure effective interactions with the FATF team visiting the country and to ensure compliance with FATF parameters, impacting India’s credit ratings and eligibility for financial assistance from international institutions.

While allowing the extension till September 15, the Supreme Court maintained that this decision was made considering larger public interest and a smooth transition. It clarified that no further applications for extension would be entertained.

The issue surrounding Mishra’s tenure had been a subject of legal scrutiny, with the Court previously ruling against further extensions. The recent decision attempts to balance the need for continuity during the FATF review while adhering to established legal principles on tenure limits.

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