Supreme Court Slams ED: Warns Against Political Misuse in Money-Laundering Case
On July 21, 2025, the Supreme Court dismissed the Enforcement Directorate’s (ED) appeals in a high-profile money-laundering case connected to the Mysuru Urban Development Authority (MUDA), in a scathing rebuke that has sent shockwaves through India’s legal and political circles. The ED was criticized harshly for being used as a tool for “political battles.” Chief Justice B.R. Gavai and Justice K. Vinod Chandra delivered the court’s severe warning as it upheld a Karnataka High Court decision that halted proceedings against Urban Development Minister Byrathi Suresh and Chief Minister Siddaramaiah’s wife, B.M. Parvathi. In addition to highlighting conflicts regarding the ED’s actions, this historic ruling calls into question the agency’s place in India’s divisive political environment.
The ED accused Parvathi and Suresh of money-laundering connected to 14 sites, which Parvathi later turned over. The case is based on claims of unlawful site allocations by MUDA. The ED appealed to the Supreme Court after the Karnataka High Court rejected the charges, stating that there was insufficient proof of “proceeds of crime” being laundered. “Do not spread this virus throughout the nation,” said Chief Justice Gavai, who was clearly frustrated and questioned the agency’s intentions. Allow the electorate to witness political conflicts. Why are you being exploited? The bench urged the ED to concentrate on real financial crimes rather than political grudges, warning that further abuse could lead to harsher judicial commentary.
The Supreme Court’s comments, which are consistent with recent decisions, show a growing judicial disquiet with the ED’s actions. The court criticized the use of the Prevention of Money Laundering Act (PMLA) to extend detentions without proof in February 2025, drawing a comparison to the dowry law. This pattern is supported by the MUDA case ruling, in which the court rejected the ED’s appeal as unfounded and found no flaw in the High Court’s logic. Sensing the bench’s disapproval, Assistant Solicitor General S.V. Raju, speaking on behalf of the ED, retracted the plea and asked that the order not be regarded as a precedent, a request that the court granted.
The ruling has generated a great deal of discussion, with BJP leaders remaining silent on the matter while opposition leaders, such as Karnataka Deputy Chief Minister D.K. Shivakumar, have accused Congress leaders of being singled out. Public sentiment is reflected in posts on X, where users such as @PriyankKharge celebrate the decision as a blow to the ED’s “political vendetta” on behalf of the BJP. The case also comes after the Madras High Court ruled on July 20 that the ED is neither a “super cop” nor a “loitering munition” with unrestricted authority. The Supreme Court’s warning signals a call for accountability as India navigates a tumultuous Monsoon Session, involving issues such as Vice President Dhankhar’s resignation and the Income Tax Bill 2025. Will the ED heed this caution , or will political battles continue to cloud its mandate? The nation awaits clarity.
