The Supreme Court declared the Union government’s decision to grant a third extension of tenure to Enforcement Directorate (ED) chief Sanjay Kumar Mishra as “illegal” and invalid. However, the court affirmed the 2021 amendments to relevant laws that allow the directors of the Central Bureau of Investigation (CBI) and ED to serve for a maximum of five years. Mishra’s tenure will now conclude on July 31, giving the Centre time to make alternative arrangements or appoint a new director.

The bench, led by Justice BR Gavai, cited a previous Supreme Court order from 2021 that restrained any further extension for Mishra, limiting his tenure beyond November 2022. The judgment stated that the legislature can change the basis of a judgment but cannot annul a mandamus issued between the parties. While upholding the validity of the amendments to the Central Vigilance Commission (CVC) Act and the Delhi Special Police Establishment (DSPE) Act, the court emphasized that Mishra’s extension after the verdict was unlawful.

The challenge against Mishra’s continuation was brought by several petitioners, including Congress leaders Randeep Singh Surjewala and Jaya Thakur, as well as Trinamool Congress MP Mahua Moitra. The Centre defended its decision by highlighting the upcoming peer review by the Financial Action Task Force (FATF), asserting that Mishra’s tenure was crucial to demonstrate India’s compliance with international protocols on money laundering and financial terrorism.

The petitioners countered the Centre’s arguments, and the court ruled to limit Mishra’s tenure as per the previous order. The Centre argued that the 2021 order was passed despite acknowledging the Centre’s authority to grant extensions. The law officers emphasized that the basis of the 2021 order had been nullified by the amendments to the CVC Act, allowing for extensions up to three years beyond the original two-year tenure.