Low conviction rate in money laundering cases: SC asks ED to focus on quality of prosecution

Citing the low conviction rate in money laundering cases, the Supreme Court on Wednesday asked the Enforcement Directorate (ED) to focus on quality of prosecution and evidence.

Referring to a statement made in Parliament, a three-judge bench of justices Surya Kant, Dipankar Datta, and Ujjal Bhuyan said the ED should do some scientific investigation to increase the conviction rate.

The Union ministry of home affairs informed the Lok Sabha on Tuesday that a total of 5,297 cases were lodged under the Prevention of Money Laundering Act (PMLA) by the ED between 2014 and 2024, while conviction was secured in 40 cases.

The top court was hearing a bail plea filed by a Chhattisgarh-based businessman, who was arrested in connection with a money laundering case involving illegal levy on coal transportation.

"You need to concentrate on the quality of prosecution and evidence. All the cases where you are satisfied that a prima facie case is made out, you need to establish those cases in the court.

"In this case, you are harping on the statements given by some witnesses, affidavits. This kind of oral evidence... this type of oral evidence, tomorrow, God knows that person will stand by it or not. You should do some scientific investigation," the bench told additional solicitor-general S.V. Raju, appearing for the ED.

Raju submitted that unlike section 161 Code of Criminal Procedure statements, statements under section 50 of the Prevention of Money Laundering Act are treated as evidence.

At this juncture, Justice Datta said section 19 of PMLA requires the arresting officer to give "reasons to believe" to the accused and asked the ASG as to whether he thought the arresting order was sustainable in the present case.

Senior advocate Mukul Rohatgi, appearing for the petitioner, stated that in Delhi chief minister Arvind Kejriwal's case, the top court has held that "reasons to believe", besides grounds of arrest, have to be supplied to the accused. Rohatgi said according to the SC judgement, there also must be a necessity to arrest.

The apex court bench, which had earlier granted interim bail to Sunil Kumar Agrawal, made its earlier order absolute.