Enforcement Directorate (ED)

Enforcement Directorate (ED)- Relevance for UPSC Exam

• GS Paper 2: Indian Constitution- Structure, organization and functioning of the Executive and the Judiciary Ministries and Departments of the Government.

Enforcement Directorate (ED)- Context

• The President of India passed an ordinance authorizing an extension of the services of the heads of the Central Bureau of Investigation and the Enforcement Directorate until they complete a total tenure of five years.
• The Central Vigilance Commission Act, 2003 was amended with respect to the Enforcement Directorate (ED) Director’s post.
• The chiefs of the Central agencies currently have a fixed two-year tenure, but can now be given three annual extensions.

Enforcement Directorate (ED)- Key Points

• About: Enforcement Directorate (ED) is a specialized financial investigation agency for enforcing the following two laws- Foreign Exchange Management Act,1999 (FEMA) and Prevention of Money Laundering Act, 2002 (PMLA).
  • Enforcement Directorate (ED) Office: ED headquarter is situated in New Delhi, India. Enforcement Directorate (ED) also has many regional offices all over the country.
  • Enforcement Directorate Chief: Enforcement Directorate (ED) is headed by the Director of Enforcement, who is an IRS officer (Indian Revenue Service).
• Parent Ministry: Enforcement Directorate (ED) functions under the Department of Revenue, Ministry of Finance, Government of India.

National Security Act,1980

Enforcement Directorate (ED)- Key Functions

• Enforcement Directorate (ED) is responsible for enforcing the following two laws-
  • Foreign Exchange Management Act,1999 (FEMA) – A Civil Law, with officers empowered to-
    • Conduct investigations into suspected contraventions of the Foreign Exchange Laws and Regulations,
    • Adjudicate, contraventions, and impose penalties on those adjudged to have contravened the law.
  • Prevention of Money Laundering Act, 2002 (PMLA) – A Criminal Law, with the officers empowered to-
    • Conduct investigations to trace assets derived out of the proceeds of crime,
    • Provisionally attach/ confiscate the same, and
    • Arrest and prosecute the offenders found to be involved in Money Laundering.
  • Other Important Functions:
    • Processing cases of fugitive/s from India under Fugitive Economic Offenders Act, 2018. The objective of this Act is to-
      • Provide for measures to deter fugitive economic offenders from evading the process of law in India by staying outside the jurisdiction of Indian Courts and
      • Preserve the sanctity of the rule of law in India.
    • Sponsor cases of preventive detention under Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) in regard to contraventions of FEMA.
    • Render cooperation to foreign countries in matters relating to money laundering and restitution of assets under the provisions of PMLA and seek cooperation in such matters.

Central Bureau of Investigation (CBI)- About, Composition, Appointment and Jurisdiction

Central Bureau of Investigation (CBI)- About, Composition, Appointment and Jurisdiction

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