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The Rediff Interview/M K Bezbaruah

'Some of the misconceptions (about ED) may arise because there is an impression that all FERA cases have to lead to criminal prosecution'

When M K Bezbaruah was transferred out from the Enforcement Directorate, it provoked a huge outcry from the public and in the media. Bezbaruah was then in the midst of many high-profile cases involving big companies, the kith and kin of powerful people, and the baron of a major newspaper. A public interest litigation filed by concerned citizens forced the government to backtrack, and Bezbaruah found himself back in his chair.

Extremely media-shy, Bezbaruah was reluctant to speak about his transfer, or about the Enforcement Directorate since many of the cases the ED is handling are sub judice and any controversial statement could result in contempt of court.

It was with some reluctance that the Delhi cadre officer hailing from Assam, finally agreed to an interview to Amberish K Diwanji, on the condition that it be kept brief! An excerpt:

How does it feel to be back as enforcement director?

I have complied with whatever orders were issued to me from time to time. For me, its is back to work as usual.

Is your retransfer a slap on the face for the government?

The retransfer arose out of a public interest litigation filed in the honourable Supreme Court. I had no role in the matter.

Despite all the corruption cases against various politicians, few of them ever get convicted. Why is this so? Does it not strengthen the common man's perception that there is one set of justice for him, another for the powerful?

The Enforcement Directorate does not deal with corruption cases in any direct manner. It is possible that some of the Foreign Exchange Regulation Act violations, which take place, may arise from unaccounted income arising from corrupt practices and are sometimes laundered through hawala operations or other methods. The Enforcement Directorate is concerned with the violation of foreign exchange regulations in relation to illegal transactions in foreign exchange. Other agencies such as the Central Bureau of Investigation and Central Vigilance Commission may be better equipped to answer these questions relating to corruption.

In some of the large cases such as those against ITC, Chandra Swami, etc, showcause notices have already been issued and quasi-judicial proceeding are going on. In the Chandra Swami case, five criminal complaints have also been filed.

Some of the misconceptions may arise because there is an impression that all FERA cases have to lead to criminal prosecution. The FERA law provides for two channels of action, that is, adjudication and criminal prosecution. If we look at the 1997 figures, the number of cases taken up for investigation were about 5,511. Of these, the large majority of the cases ended in adjudication where the persons were either exonerated or a penalty imposed on them. Only 92 case of organised racketeering and involving a modus operandi, which clearly showed criminal intent and racketeering aspect, were prosecuted in a criminal court. This amounts to only 1.6 per cent of the total number of investigations.

During the same year, out of 48 cases in the criminal courts, 31 cases resulted in conviction which gives a reasonable ratio of 62.3 per cent against disposals.

With you now reporting directly to the Central Vigilance Commission after it was set up recently, will you have more freedom to pursue the cases against corrupt politicians?

The Enforcement Directorate is not reporting to the CVC. It continues to report to the department of revenue in the ministry of finance. However, a new rule states that for appointments and premature transfer of the director of enforcement, a committee headed by the CVC will from now on have to be consulted. My own tenure of two years has expired and hence it has no significance for me. But the benefit will pass on to my successor. I think the new rule will provide greater stability to the post by preventing arbitrary transfers.

Under your charge, the ED has not made any progress in the cases against ITC, Shaw Wallace, Chandra Swami's FERA case, and the one against former prime minister P V Narasimha Rao's son Prabhakar Rao. Any reasons for this? When can we expect to see the guilty booked and stand trial?

In reply, let me read out some statistics. In the ITC case, 20 showcause notices after completion of investigation have already been issued. Similarly, in the Shaw Wallace case, one showcause notice has already been issued. In the Chandra Swami group of cases, about 15 showcause notices have been issued, of which eight have been adjudicated, whereafter penalties of about Rs 4.5 million have been imposed. In the urea scam case (involving Prabhakar Rao), a number of persons have already been arrested during the investigation process and the case is nearing completion.

The ED still has to frame charges against Ashok Jain, despite the publicity surrounding the case and your personal supervision of the same? Will this case also go the way of the other cases?

Regarding the case of Ashok Jain (chairman of The Times of India group of newspapers), because of a high court order and the matter being sub judice, I am unable to comment on the case right now.

Sections of the media seem to have launched a crusade against you. How do you view their one-sided approach to the cases you are handling?

To this, I will draw your attention to the Press Council's decision. The Press Council of India, in its ruling dated August 4-5, 1998, has censured The Times of India group in the following words:

'The Committee (which judged the matter) recommends to the Council that the respondent newspaper should be censured for carrying on the complaint against the ED with the manifest intention of pressurising and deflecting it from performing its lawful duties and communalising the investigations by the lawful arm of the State, and also for publishing distorted statements of the persons concerned...'

I hope this will answer your question adequately. The Enforcement Directorate has to discharge its functions strictly within the law as provided by FERA. If for motivated reasons, any section of the media launches a crusade as suggested in the question, the Enforcement Directorate cannot respond in a similar manner and has to continue to function as per the provisions of the law.

The Rediff Interviews