Relevance: GS II (Polity – Federalism) | Source: The Hindu ;Supreme Court Proceedings

1. The Human Context: A Federal Showdown

A massive constitutional fight has reached the Supreme Court. It isn’t just about money laundering; it’s a “Turf War.”

  • The Scene: States like Kerala and Tamil Nadu, feeling targeted by the Enforcement Directorate (ED), have gone to their local High Courts to stop investigations into their ministers.
  • The Counter: The Central Government is fighting back, arguing that a State Government cannot drag a Central Agency to a local court. If a State wants to fight the Centre, it must step into the ring at the Supreme Court.

2. The Core Fight: “My Backyard” vs. “Top Court”

The dispute is technically about venue—where should this legal battle be fought?

  • Centre’s Argument (Article 131): The ED is a limb of the Union Government. Therefore, a fight between a State and the ED is actually a fight between the State and the Centre. Under the Constitution (Article 131), such heavy-weight federal disputes can only be heard by the Supreme Court.
  • State’s Argument (Article 226): States argue that the ED is a statutory body, not the Government itself. Therefore, like any other aggrieved party, a State can approach its own High Court (Article 226) to protect its administration from harassment.

3. The “Juridic Person” Debate

The Supreme Court is now deciding a strange question: Is the ED a “Person”?

  • The Logic: They don’t mean a human, but a “Juridic Person” (a legal entity that can sue or be sued independently, like a company).
  • The Impact:
    • If the ED is a distinct person, States can sue it in High Courts.
    • If the ED is not distinct from the Union Government, the State has to go to the Supreme Court.

UPSC Value Box

Concept / ArticleRelevance for Prelims
Article 131The “Original Jurisdiction” of the Supreme Court. It handles disputes strictly between federal units: Centre vs. State OR State vs. State. Citizens cannot use this article.
Article 226Grants High Courts the power to issue writs. Interestingly, this power is wider than the Supreme Court’s Article 32, as High Courts can issue writs for “any other purpose,” not just Fundamental Rights.
PMLA, 2002Prevention of Money Laundering Act. The law that gives the ED its power to arrest and attach property. Unlike police FIRs, ED records an ECIR (Enforcement Case Information Report).

Q. With reference to the jurisdiction of the Supreme Court of India under Article 131, which of the following disputes is/are EXCLUDED from its purview?

  1. Disputes involving private citizens against the Government of India.
  2. Disputes relating to the use and distribution of inter-state river waters.
  3. Disputes between the Government of India and one or more States.

Select the correct answer using the code given below:

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

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