India's Financial Crime Watchdog Registers Just 40 Convictions for Money Laundering Since 2014 Despite Thousands of Cases

India’s Enforcement Directorate (ED), the government agency responsible for investigating financial crimes, has secured only 40 convictions for money laundering in the last decade, despite having registered 5,297 cases under the Prevention of Money Laundering Act (PMLA) since 2014. This data, provided by Nityanand Rai, the Union Minister of State for Home Affairs, to the Lok Sabha, highlights the challenges faced by the ED in securing convictions.

Out of the total cases registered, only 43 trials have been completed, with 40 resulting in convictions. The other three trials ended in acquittals, two of which occurred in 2017, and the third in 2024. The majority of the cases—nearly 4,500—were filed between 2019 and 2024, following an expansion of the PMLA that granted the ED additional investigative powers.

In a separate parliamentary response, Pankaj Chaudhary, the Minister of State for Finance, revealed that the ED had initiated 132 money laundering cases against politicians over the past six years. These cases involved sitting and former Members of Parliament (MPs), Members of Legislative Assembly (MLAs), Members of Legislative Council (MLCs), and other political figures, or anyone associated with a political party. However, only three of these cases have gone to trial, with just one resulting in a conviction.

The low conviction rate has drawn criticism from India’s Supreme Court. Justice Ujjal Bhuyan, while hearing a money laundering case, referred to parliamentary discussions, saying: “Somebody made a statement in Parliament that after the amendment, 5,000 odd cases have been registered and conviction has been obtained only in 40 cases.” His colleague, Justice Surya Kant, emphasized the need for the ED to focus on the quality of its prosecutions, stating: “Why you really need to (focus) on the quality of prosecution and quality of evidence is because [in] all the cases where you are satisfied that there is some prima facie case, you need to establish the cases in court.”

Opposition parties have also voiced concerns over the PMLA, which has been in effect since 2005, alleging that it is being used by the current government to target political opponents.

By fLEXI tEAM