The government had sought the extension to help in seamless peer review by Financial Action Task Force (FATF), the global money laundering and terror financing watchdog.
Clarifying that in ordinary circumstances, such an application from the government would not have been entertained, the bench of Justices BR Gavai, Vikram Nath and Sanjay Karol said, “In larger public interest, we are inclined to permit Mishra to continue as director for some more time till September 15. We direct that Mishra would cease to be the director of ED on September 15-16 midnight and no more applications for his extension under any circumstances would be entertained in future.”
A fortnight ago, the court had ruled that the extensions given to Mishra in 2021 and 2022 were violative of the SC’s 2021 judgment barring further extensions. The bench reserved its order at 4.05pm after a 30-minute hearing and pronounced it at 4.15pm.
SC on ED chief‘s term: ‘Does it show dept in good light?’
During Thursday’s hearing, Justice Gavai said, “(By making this application) is the government not giving an indication that ED is full of incompetent persons who can’t succeed Mishra? It is as if that person is not there, the entire department is not going to function. Does it show the department in good light? Will it not demoralise the entire workforce in the department? Does it not indicate that there is not a single competent person who can succeed Mishra?
“Suppose I am the CJI and something untoward happens to me. Will the Supreme Court or the country’s judicial system collapse in my absence?”
Solicitor general Tushar Mehta said it was not about the indispensability of one person. “The issue here is leadership. No one is indispensable, but the country will benefit with continuity and present a correct picture of action taken against offences of money laundering and terror funding. Maintaining a good FATF rating, which India enjoys, will project a positive image of the country’s financial capabilities and rigorous framework against financial offenders.” Additional solicitor general S V Raju supplemented the SG and said neighbouring countries, one big and another small, were trying their best to see India slip on the rating.
The government had cited FATF peer review, to make the plea that the ED chief be allowed to continue until October 15.
Attaching importance to the question-and-answer process involving India prior to the visit of the FATF team for field inspection, the SG said it would be desirable in national interest to allow Mishra to continue as director of ED, which plays a crucial role in tackling money laundering and terror funding offences.
Opposing the Centre’s plea, senior advocates AM Singhvi, AG Chaudhary and lawyer Prashant Bhushan said ED was one of the 40 departments involved in the FATF review and that it was the department of revenue under the finance ministry that was key to the formulation of India’s stand before FATF.
They said the issue of FATF review was placed before the SC and it was dealt with by the bench headed by Justice Gavai in the SC’s July 11 judgment, by which Mishra’s tenure was extended till July 31. “To say the least, the government’s stand, which is in the teeth of SC’s judgment, is deplorable,” Singhvi said. Bhushan said if the government was so keen on retaining Mishra’s expertise, he could be appointed as an adviser to the key persons preparing India’s report for the FATF review.
