Supreme Court allows extension of tenure of ED Director Sanjay Kumar Mishra till September 15, 2023

The Supreme Court on Thursday extended the tenure of incumbent Director of Enforcement Directorate (ED) Sanjay Kumar Mishra till September 15, 2023..A bench of Justices BR Gavai, Vikram Nath and Sanjay Karol partially allowed the plea filed by the Central government for extension but made it clear that no further extension will be granted.The order was passed on a plea was filed by the Union government for modification of the Court's July 11 verdict which had set a deadline of July 31 for the appointment of a new director of the Enforcement Directorate (ED)..The apex court in its July 11 verdict had struck down the earlier extension granted to Mishra on the ground that the same was in violation of its 2021 judgment..The Central government then moved the Court contending that Mishra should be allowed to stay in office till October 15 this year so that the Financial Action Task Force's (FATF) review of India's money-laundering probe operations goes smoothly.The Court partially allowed the same today and extended the tenure till September 15."To allow smooth transition. we find that taking into consideration larger public interest we permit ED director to continue for some more period. We permit ED director to continue till Sept 15, 2023. No further applications shall be entertained for extension of tenure," the Court said in its order.Background.Mishra was first appointed ED Director for a two-year term in November 2018. This term expired in November 2020. In May 2020, he had reached the retirement age of 60.However, on November 13, 2020, the Central government issued an office order stating that the President had modified the 2018 order to the effect that a time of 'two years' was changed to a period of 'three years.'This was challenged before the Supreme Court by the NGO Common Cause.The Supreme Court in a September 2021 verdict approved the modification, but ruled against granting more extensions to Mishra.After the Court's decision in 2021, the Central government brought in an ordinance amending the Central Vigilance Commission (CVC) Act, giving itself the power to extend the tenure of the ED Director by up to five years.The parliament later passed a law in this regard allowing extensions to the tenure of the ED Director for one year at a time, subject to a maximum of 5 years.This came to be challenged before the apex court which on July 11, ruled against any further extension and said that Mishra should demit office by July 31..Arguments today.In its application filed on Wednesday, the Union government described at length the nature of the FATF review process that will conclude in November this year.It argued that Mishra being at the helm of affairs during this time is essential to aid the FATF team scheduled to visit the country effectively and ensure all compliances.."On November 3 FATF team will visit India. Some question and answer needs to be exchanged," the Solicitor General Tushar Mehta, appearing on behalf of the Central government, told the Court on Thursday.The Court asked whether ED does not have any other officer who can deal with the FATF review."Are you not giving a picture that your department has only one competent person and is it not demoralising the entire force? Will the Supreme Court collapse if I am not able to continue as the CJI," Justice Gavai asked.SG Mehta, however, contended that it is important for the current ED director to continue till the FATF review is done."This is not an annual exercise which someone can take over. No country was peer reviewed earlier. Now it has started. Continuity will help the country. The grading which be given in FATF will decide the country's eligibility of credit ratings and also then qualify for financial help from world bank etc. No one is indispensable, that I know in today's world," he submitted.Senior Advocate Abhishek Manu Singhvi, appearing for the petitioner, opposed the plea. He said that this was a review petition in the guise of a modification plea since the FATF aspect was already dealt with by the Court in its July 11 judgment."The court had dealt with FATF. This is like a review petition in open court," he said.He also questioned the necessity of Mishra continuing as ED director for FATF review."This is like whole country in shoulder of one person.. it is being told so .. why? FATF started beginning of year and it ends in 2024 end. It has 40 parameters. Money laundering is only one aspect. The entire focus is on this ED director. As an institution we will be sorry. Review which happens for 2 years and one person steps down the review falls?" he asked.Singhvi also questioned the rationale behind asking extension till October 15 this year."If the FATF ends in 2024 then why extension till Oct 15 only and not 2024. Ministerial secretariat is the one who answers all of this," he said.Senior Advocate Anoop G Chaudhari also opposed such extension."There are other agencies like CBI, SFIO, Financial Intelligence Unit and ED is a small part in this which are there to achieve the same object. Here it is being made if ED director is the most important thing. Averments here ditto copy of what was filed before this court and then Supreme Court held that earlier two extensions was held illegal. What will international community think when they know that ED does not have anybody expect Mishra who was appointed illegally," he said.Advocate Prashant Bhushan asked how Mishra would be indispensable for FATF review."This is like a review application. They submit as if ED director is essential for FATF review. If the ED director is so important he can be appointed as a special advisor to the ED Director...It is a gross abuse of court. Tt cannot be said that this man indispensable for FATF review," Bhushan argued..Why Central government has moved Supreme Court seeking extension of tenure of ED Director Sanjay Kumar Mishra till October 15