Former Additional Solicitor General Atmaram Nadkarni criticized the Enforcement Directorate (ED) for unnecessarily prolonging investigations and detaining money laundering accused without trial. He highlighted the misuse of ED’s discretionary powers, urging for reforms and a more proactive judiciary to prevent the exploitation of the system for extraneous purposes.
New Delhi: Former Additional Solicitor General (ASG) Atmaram Nadkarni has voiced sharp criticism of the Enforcement Directorate (ED), accusing the agency of unnecessarily prolonging the imprisonment of individuals accused of money laundering. Nadkarni argued that the ED should not “take ages” to investigate cases, while the accused languish in jail without trial.
Speaking at the First International Supreme Court Advocates-on-Record Legal Conference in Goa, Nadkarni emphasized that after conducting an investigation, the ED must release the accused. “ED in investigation cannot take ages. After probing, you need to release the person,” he said.
Nadkarni also criticized the broad discretionary powers wielded by the ED, suggesting that these powers are often used improperly.
“Powers of ED are subjective and it depends. His master’s voice which actually works and that is how ED works. I am openly saying it,”
he said, adding that this misuse of power angers him. “My blood boils when I see it,” he remarked, expressing frustration at how the system can be exploited for extraneous purposes.
He also pointed out that this is an issue he has raised before, even during his tenure as Additional Solicitor General. Nadkarni urged for a more civilized approach to jurisprudence, particularly in light of the recent Supreme Court decision to review the Prevention of Money Laundering Act (PMLA) judgment. “It is high time we wake up to this reality,” he stated.
Nadkarni acknowledged that the Supreme Court has begun to intervene by granting bail to individuals accused of money laundering. However, he expressed disappointment that High Courts have yet to follow suit. “It is unfortunate that the judiciary and the Supreme Court had to release them but still High Courts are not following it,” he said, although he noted that “it all depends on a case-to-case basis.”
Touching on the deeper issue of corruption, Nadkarni argued that the excessive control within institutions fosters corruption. “See, corruption is the worst cancer affecting the country. But it is control which breeds corruption,” he said, adding that while the judiciary is aware of this, it has yet to openly acknowledge the problem. “The judiciary knows it but does not acknowledge that control breeds corruption,” he stated.
Discussing the origins of the PMLA, Nadkarni explained that many legislators were unaware of the full implications of the law when it was passed.
“When parliament passed it, they did not know what would be the implication of its enforcement. Everyone just raised their hands,”
he said.
Nadkarni further pointed out the irony that P Chidambaram, who was the Finance Minister when the PMLA was enforced under the United Progressive Alliance (UPA) government, later became a victim of the very law when he was arrested in a money laundering case in 2018.
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“At one time, he also became a victim of PMLA,”
Nadkarni noted.
Nadkarni raised another significant concern regarding the ED’s power to attach property, often without any recourse for the accused. “Property once attached is never released,” he said, highlighting that even ancestral properties not connected to the alleged offense are sometimes attached. He noted that in only a few cases involving politicians has property been released. “Only in cases of three politicians, properties were released,” Nadkarni pointed out.
Given these issues, Nadkarni expressed hope that the judiciary would take a more proactive role in addressing these injustices. “The hope of the common man is only judiciary and not the statutory,” he said, calling for a “super active” judiciary to step in and correct these wrongs.
Atmaram Nadkarni’s remarks underscore the critical need for judicial oversight in the functioning of the ED, as well as the importance of ensuring that the powers granted under the PMLA are not misused. His passionate plea for reform comes at a time when the Supreme Court has already begun reviewing aspects of the PMLA. As public trust in institutions like the ED is challenged, it is clear that both legislative and judicial reforms are necessary to safeguard citizens’ rights and maintain the integrity of India’s justice system.
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