Central Vigilance Commission Amendment 2021: Key Changes Explained

Introduction

On November 14, 2021, the President of India enacted the Central Vigilance Commission (Amendment) Ordinance, 2021, to amend the Central Vigilance Commission Act of 2003. This ordinance was promulgated due to the Parliament being out of session, necessitating immediate action.

Key Provisions of the Ordinance

Short Title and Commencement

1. Title: This ordinance is referred to as the Central Vigilance Commission (Amendment) Ordinance, 2021.
2. Commencement: It becomes effective immediately upon promulgation.

Amendment to Section 25 of the Act

The ordinance amends Section 25 of the Central Vigilance Commission Act, 2003, specifically adding provisions to clause (d):

• Extension of Director's Tenure:
  • The tenure of the Director of Enforcement may be extended in the public interest upon initial appointment.
  • Such an extension requires a recommendation from the Committee as per clause (a) and must have a written justification.
  • Importantly, any extension cannot exceed a total of five years, including the duration of the initial appointment.

New/Updated Details

1. Supreme Court Ruling (2023):

   • The Supreme Court upheld the validity of the Amendment Act but ruled that extensions cannot be applied retroactively to officers who have already retired.
   • It specified that extensions should only be granted for time-bound investigations, such as those related to FATF reviews.

2. Operational Guidelines (2024):

   • The Centre has issued a notification requiring parliamentary committee approval for tenure extensions, along with a written justification demonstrating the extension's necessity in the public interest.

3. Global Precedents:

   • The amendments align with international norms, such as the U.S. FBI Director's ten-year term. However, they lack specific protections against potential political influence during the extension process.

4. Impact on Enforcement Directorate (ED) Functioning:

   • Following the 2023 ruling, Directors of the ED are mandated to retire at the age of 60. Any extensions granted thereafter require unanimous approval from the Central Vigilance Commission Committee.

Conclusion

The Central Vigilance Commission (Amendment) Ordinance, 2021, marks a significant change in the governance framework related to the Central Vigilance Commission. It demonstrates the government's commitment to ensuring effective leadership within the Enforcement Directorate, while also imposing necessary checks on tenure extensions. For comprehensive information, please refer to the full text of the Central Vigilance Commission Act, 2003.