The Enforcement Directorate (ED) has emerged as one of India’s most powerful financial crime investigation agencies, especially under the framework of the Prevention of Money Laundering Act, 2002 (PMLA). While the ED’s mandate includes tackling sophisticated economic offences, its aggressive rise since 2014 has triggered serious debate regarding its operational transparency, constitutional legitimacy, and political neutrality. This paper examines whether the ED is fulfilling its intended role as a financial watchdog or functioning increasingly as a political weapon. Relying on official data, recent court rulings, and media investigations, the paper highlights key patterns in enforcement trends, including a sharp surge in cases against political opposition figures, low conviction rates under PMLA, and controversial amendments passed through Money Bills. It also reviews high-profile cases such as the INX Media scandal, the ongoing challenges before the Supreme Court in Karti P. Chidambaram v. ED, and the ED Kochi Unit bribery case involving Assistant Director Shekhar Kumar. Comparative insights are drawn from international best practices to assess institutional accountability. The paper concludes with recommendations for reforming the ED’s framework to align with principles of fairness, transparency, and federalism, thereby preventing its misuse and restoring public confidence in India’s anti-corruption apparatus.