ED recovered ₹23,000 cr laundered money, distributed it to victims: SG to SC

August 7, 2025

New Delhi: The Enforcement Directorate (ED) has recovered approximately ₹23,000 crore in laundered money, which has been distributed to victims of financial crimes, Solicitor General Tushar Mehta informed the Supreme Court on Thursday.

This statement was made before a special bench headed by Chief Justice B R Gavai and Justice Satish Chandra Sharma during an open court session that involved a review of the court’s controversial May 2 judgment. In that verdict, the Supreme Court ordered the liquidation of Bhushan Power & Steel Limited (BPSL) and overturned a resolution plan proposed by JSW Steel.

On July 31, the apex court, led by the Chief Justice, recalled the original ruling and decided to re-examine the review petitions in this significant case.

During the proceedings, a lawyer referred to the ED’s investigation in the BPSL case as well. The Chief Justice remarked, “Here also ED is there,” prompting the Solicitor General to reveal, “Let me tell a fact, which was never said in any court — ED has recovered ₹23,000 crore and distributed it to victims.” He emphasized that the recovered funds do not stay with the government but are instead given to those affected by financial crimes.

The Chief Justice inquired about the conviction rate, to which Mehta responded that conviction rates in criminal cases are quite low, mainly due to issues plaguing the criminal justice system. The CJI countered, “Even if they are not convicted, you’ve been successful in sentencing them nearly without a trial, lasting for years.”

Mehta explained that in some cases, particularly involving politicians where large cash sums were found, the ED’s machinery was affected—sometimes even forced to halt operations due to the cash. He also mentioned that false narratives are often created through YouTube programs and social media, especially when big politicians are involved.

The Chief Justice clarified, “We don’t decide matters based on narratives… I only see newspaper headlines in the morning for 10-15 minutes.” The Solicitor General acknowledged that courts do not base decisions on social media stories or outside influences.

Several Supreme Court benches have previously expressed concern over the ED’s alleged overreach, especially in cases involving opposition leaders accused of money laundering. Notably, on July 21, a different bench questioned the ED, stating it was “crossing all limits,” in a suo motu case related to the summons of two senior advocates, who were called for offering legal advice or representing clients during ongoing investigations.