Context:
ED seeks adjournment in Kerala gold smuggling case trial.
Enforcement Directorate (ED):
- A multi-disciplinary organization premier financial investigation agency of the Government of India
- Mandate – Investigation of economic crimes and violations of foreign exchange laws.
- Functions under – Department of Revenue, Ministry of Finance
- Evolution of ED:
- In 1956, an ‘Enforcement Unit’ was formed in the Department of Economic Affairs.
- In 1960, its administrative control was transferred from the Department of Economic Affairs to the Department of Revenue.
- It was regulated under Foreign Exchange Regulation Act (FERA) of 1973 (repealed later).
- Later, Prevention of Money Laundering Act, 2002 (PMLA) was enacted and ED was entrusted with its enforcement w.e.f. 1st July 2005.
- Structure of ED –
- Headed by – Director of Enforcement
- Tenure – 2 years (maximum 3 annual extensions)
- 5 regional offices at Mumbai, Chennai, Chandigarh, Kolkata and Delhi headed by Special Directors of Enforcement.
- Recruitment – Recruitment of the officers is done directly and by drawing officers from other investigation agencies.
- Headed by – Director of Enforcement
- Statutory functions of ED –
- Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) – Directorate is empowered to sponsor cases of preventive detention with regard to contraventions of FEMA
- Foreign Exchange Management Act, 1999 (FEMA) – ED conducts investigation into suspected contraventions of foreign exchange laws and regulations.
- Prevention of Money Laundering Act, 2002 (PMLA) – ED execute the provisions of PMLA by conducting investigation to trace the assets derived from proceeds of crime.
- Fugitive Economic Offenders Act, 2018 (FEOA) – ED is mandated to attach the properties of the fugitive economic offenders who have escaped from India warranting arrest and provide for the confiscation of their properties to the Central Government.
Central Bureau of Investigation (CBI) and ED:
| Central Bureau of Investigation (CBI) | Enforcement Directorate (ED) | |
| Nature | Not a statutory body | Not a Statutory body |
| Ministry | Ministry of Personnel, Pension & Public Grievances | Department of Revenue under the Ministry of Finance |
| Acts governing | Derives powers from the Delhi Special Police Establishment Act of 1946 | Mainly from 2 acts: Foreign Exchange Management Act, 1999 (FEMA) and Prevention of Money Laundering Act, 2002 (PMLA) |
| Investigates | Anti-Corruption crimes and special crimes under IPC apart from economic crimes | Only economic crimes. Can carry out searches and confiscate assets |
| Economic Crimes | Investigates crime of corruption, economic offences | Investigates offences of money laundering and foreign exchange laws violation |
| Central Government’s role | Needs Central Government notification to initiate investigation | Does not need such notification |
Source: The Hindu
Previous Year Question
Consider the following organizations/bodies in India:
1. The National Commission for Backward Classes
2. The National Human Rights Commission
3. The National Law Commission
4. The National Consumer Disputes Redressal Commission
How many of the above constitutional bodies?
[UPSC Civil Services Exam – 2023 Prelims]
(a) Only one
(b) Only two
(c) Only three
(d) All four
Answer: (a)
Explanation: Among the organizations mentioned, only the National Commission for Backward Classes is a constitutional body.
