When the enforcement becomes extortion: ED in politics.

As we see in our county the tainted money moves faster than the law enacted to prevent it. This tainted money is being used in various mechanisms to protect its earners. From where is this tainted money originating? This tainted money arises out of different sorts of crimes as proceeds of crime. The earners of this tainted money are in symbiotic association with people in government. The people running the government do not want to lose their position, and to keep their position, they are using this tainted money, which they are extorting from the earners. Earners are also not hesitating to provide them with the money in order to protect their earnings and illicit means of gaining it.

The law enacted to prevent money laundering is the Prevention of Money Laundering Act, 2002. The way this act is structured, the central government, through the Enforcement Directorate (ED), monopolises the initiation of proceedings under this act. This inevitably raises concerns about arbitrariness and selective application. These powers with ED look so wide because, with these exclusive initiation powers, where only the ED can file a written complaint that allows special courts to take cognizance, this means that the government can decide whom to prosecute and whom to spare, unlike general criminal law, where police reports, or private complaints can trigger the proceedings.

Money Laundering cases often involve high-profile individuals, so the risk of selective targeting and shielding is amplified. And with this power of selective targeting, the people in the government can bend these high-profile individuals and align them with their own political agenda.

The Hon’ble Supreme Court in the case of Vijay Madanlal Chaudhary vs Union of India (2022) upheld the constitutionality of ED’s powers but also acknowledged concerns about its potential misuse.

Lack of independent prosecutorial oversight makes ED’s powers more vulnerable to political influence. There should be an independent oversight mechanism, such as parliamentary committees, to ensure fairness in the initiation of PMLA proceedings.

Money is like oxygen in this fast-growing world, and these money launderers and their perpetrators are stealing this valuable oxygen from the people who actually deserve it. Thousands of people are dying in our country due to the financial crisis, taking the money that they deserve (stealing their oxygen away) is as grave as committing their murder.