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Source– The post is based on the article “Needless move” published in “The Hindu” on 29th July 2023.
Syllabus: GS2- Statutory, Regulatory bodies
Relevance: Issues related to external trade
News- The SC in his order allowed Sanjay Kumar Mishra, head of the Enforcement Directorate, to continue till September 15 at the Centre’s request.
Court has invoked “larger national interest” to allow him to go on up to September 15.
What are the arguments presented by the central government to extend the tenure of ED director?
As per the government, his leadership is necessary for the country to demonstrate that its framework is effective to combat money laundering and terrorist financing during a review by the FATF.
FATF uses a mutual evaluation system. It is currently conducting a comprehensive assessment of India’s measures. This review is expected to continue until June 2024.
The extension is required to ensure that the country’s agencies and institutions are adequately prepared for an on-site visit by an FATF delegation.
Why is government reasoning flawed?
The Enforcement Directorate may play a crucial role in preparing the country’s presentation for countering money laundering. But, it is hard to believe that the entire process relies solely on one individual.
Additionally, multiple agencies and authorities are involved in formulating the country’s policies on money laundering and terrorism financing.
The claim that not extending Mr. Mishra’s tenure might lead to a “negative image” is difficult to comprehend. India’s reputation will be evaluated based on its laws, systems, and adherence to global standards, not solely on who prepared the report.
