SC seeks govt. response to pleas challenging extension of ED director

Subject: Polity

The Supreme Court on Monday sought the government’s response to petitions challenging the third extension in tenure given to Directorate of Enforcement (ED) Director Sanjay Kumar Mishra.
A Bench led by Justice B.R. Gavai issued notice to the Union of India and the Central Vigilance Commission.
A batch of pleas have been filed on the issue, mostly challenging the Central Vigilance Commission (Amendment) Act, 2021 which provides for extension of the term of ED’s director up to five years.

Amendments in CVC Act:

In November 2021, the President of India promulgated two ordinances allowing the Centre to extend the tenures of the directors of the Central Bureau of Investigation (CBI) and the Enforcement Directorate from two years to up to five years.
Provided that the period for which the Director of Enforcement holds the office on his initial appointment may, in public interest, on the recommendation of the Committee (comprising of CVC chief, Revenue and Home Secretaries among others) and for the reasons to be recorded in writing, be extended up to one year at a time.
Provided further that no such extension shall be granted after the completion of a period of five years in total including the period mentioned in the initial appointment.

Enforcement Directorate

Directorate of Enforcement is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance.
On 1st May 1956, an ‘Enforcement Unit’ was formed, in the Department of Economic Affairs, for handling Exchange Control Laws violations under Foreign Exchange Regulation Act, 1947.
In the year 1957, this Unit was renamed as ‘Enforcement Directorate’.
Appointment of ED Director is governed by the Delhi Special Police Establishment (DSPE) Act, 1946.
ED enforces the following laws:
Foreign Exchange Management Act,1999 (FEMA)
Prevention of Money Laundering Act, 2002 (PMLA)

Structure of ED

The Directorate of Enforcement, with its headquarters at New Delhi, is headed by the Director of Enforcement.
There are five regional offices at Mumbai, Chennai, Chandigarh, Kolkata and Delhi headed by Special Directors of Enforcement.
The Directorate has 10 Zonal offices each of which is headed by a Deputy Director and 11 sub Zonal Offices each of which is headed by an Assistant Director.

Appointment of ED director

The ED director is appointed as per provisions of the Central Vigilance Commission Act, 2003
The Centre appoints the director on recommendation of a committee, with the Central Vigilance Commissioner as chairperson
Other committee members are secretaries in the Finance (Revenue), Home and Personnel & Training ministries
The tenure should be “not less than two years,” and any transfer has to be sanctioned by the appointing committ