Enforcement Directorate
प्रवर्तन निदेशालय
Official emblem of Enforcement Directorate
Official emblem of Enforcement Directorate
AbbreviationED
Agency overview
Formed1 May 1956 (1956-05-01)
Legal personalityGovernment agency
Jurisdictional structure
Federal agencyIndia
Operations jurisdictionIndia
Governing bodyGovernment of India
Constituting instruments
General nature
Operational structure
HeadquartersNew Delhi, India
Minister responsible
Agency executive
  • Rahul Navin, IRS, Director Enforcement
Parent agencyDepartment of Revenue, Ministry of Finance
Website
enforcementdirectorate.gov.in

The Directorate of Enforcement (ED) is a domestic law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India.[1] It is part of the Department of Revenue, Ministry of Finance, Government Of India.[2] The Enforcement Directorate focuses on investigating and prosecuting cases related to money laundering, foreign exchange violations, and economic offenses. Its primary objective is to curb the generation and circulation of black money and to ensure compliance with the laws concerning foreign exchange and prevention of money laundering. However, targets of the enforcement directorate have claimed that they misuse powers against activists, scholars, and political rivals. [3][4]

In July 2022, according to data shared by the union government in Parliament, only 23 people have been convicted in 5,422 cases registered under the Prevention of Money Laundering Act (PMLA)[5] in the 17 years after the law was passed, which is a conviction rate of less than 0.5%. Whereas the national conviction rate in India for offences of the Indian Penal Code is 57.0% in 2021.[6]

The origin of the ED goes back to 1 May 1956, when an "enforcement unit" was formed, within the Department of Economic Affairs, for handling Exchange Control Laws violations under the Foreign Exchange Regulation Act, 1947. In 1957, the unit was renamed as the Enforcement Directorate.[7]

Objective

The prime objective of the Enforcement Directorate is the enforcement of two key Acts[8] of the Government of India namely, the Foreign Exchange Management Act, 1999 (FEMA) and the Prevention of Money Laundering Act, 2002 (PMLA), and The Fugitive Economic Offenders Act, 2018 (FEOA).

Organizational set up

The Directorate of Enforcement, with its headquarters at New Delhi, is headed by the director of enforcement. There are five regional offices at Mumbai, Chennai, Chandigarh, Kolkata, and Delhi headed by special directors of enforcement.

Zonal offices of the directorate are at Pune, Bengaluru, Chandigarh, Chennai, Kochi, Delhi, Panaji, Guwahati, Hyderabad, Jaipur, Jalandhar, Kolkata, Lucknow, Mumbai, Patna, and Srinagar.[9] These are headed by a joint director.

The directorate has sub-zonal offices at Mangaluru, Bhubaneshwar, Kozhikode, Indore, Madurai, Nagpur, Allahabad, Raipur, Dehradun, Ranchi, Surat, Shimla, Vishakhapatnam and Jammu[9] which are headed by a deputy director.

Special courts

For the trial of an offence punishable under section 4 of PMLA, the Central Government (in consultation with the chief justice of the High Court), designates one or more Sessions Court as Special Court(s). The court is also called "PMLA Court". Any appeal against any order passed by PMLA court can directly be filed in the High Court for that jurisdiction.[10]

Criticism

In July 2022, according to data shared by the union government in Parliament, only 23 people have been convicted in 5,422 cases registered under the Prevention of Money Laundering Act (PMLA)[11] in the 17 years after the law was passed, which is a conviction rate of less than 0.5%. The cases by ED have gone up six times in Prime Minister Narendra Modi's second term, which led to accusations by opposition parties stating that ED is being misused by the BJP for their political ends.[12] In April 2023, Supreme Court of India turned down a petition by 14 opposition parties accusing the Narenda Modi led government of misusing central agencies.[13] In August 2023, in a debate in the parliament, union home minister Meenakshi Lekhi from BJP told the opposition, "keep quiet, or ED may may arrive at your home"[14]

PMLA Misconduct on Scholars and Researchers

The Enforcement Directorate has been criticized for targeting scholars and activists. People are worried that the Prevention of Money Laundering Act (PMLA) is being misused to quiet those who disagree with the government. Many activists and scholars have signed a letter speaking against this. A big example of this is when researcher Navsharan Singh was questioned by the ED. Many people did not like this. People are now discussing the balance between safety and the right to speak freely. Many believe it's crucial to protect free speech in a democracy.[15]

[16]

Summons to farmers belonging to scheduled caste farmers mentioning their caste

Envelope of the ED summons mentioned the caste of the farmers as ‘Hindu Pallars’ on it. The ED is alleged to be pursuing the Dalit farmers – who subsist on a Rs 1,000 monthly pension – as they are engaged in a land dispute case, where they have accused a local BJP leader of trying to illegally grab their land.

Main Laws and Acts of the ED

Some major laws and acts of the ED:[17]

Foreign Exchange Management Act, 1999 ( FEMA )

Prevention Of Money Laundering Act, 2002 ( PMLA )

Fugitive Economic Offenders Act, 2018 ( FEOA )

Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA)

Internal structure

Directorate of Enforcement is having following hierarchy of the officers; Assistant Enforcement Officer-Enforcement Officer-Assistant Director-Deputy Director-Joint Director-Special Director-Director. However, with increasing workload and to adjust the hierarchical needs other designations like additional director are also introduced. Directorate recruits officers as Assistant Enforcement Officer (AEO). AEOs are promoted to various levels of hierarchy and serve the Directorate of Enforcement throughout their career however a large chunk of officers are taken on deputation at various level and they remain on temporary basis in ED for 2 to 5 years.

ED's Arrest Powers Limited: SC

On 27 July 2022, The Supreme Court of India upheld the provisions of the act and retained the powers of the Enforcement Directorate under the PMLA,[18][19][20] which was criticized for putting the personal liberty of citizens at risk by the undue process allowed by the provisions of PMLA.[21][22]

On 22 August 2022, Supreme Court accepted a petition to review its 27 July 2022 judgement which upheld core amendments made to the Prevention of Money Laundering Act (PMLA).[23] On 25 August 2022, Supreme Court said that two provisions, not providing a copy of the Enforcement Case Information Report to the accused, and reversal of the presumption of innocence, need reconsideration.[24]

In a significant ruling, the Supreme Court of India clarified that Enforcement Directorate (ED) officials are not equivalent to police officers and hence, cannot make arrests under the Prevention of Money Laundering Act (PMLA). The apex court's decision came in response to the case presented by V. Senthil Balaji and liquor syndicate racket in Chhattisgarh. Emphasizing the importance of adhering to the rule of law, the Supreme Court stated that the ED cannot operate as "a law unto itself." This landmark judgment underscores the boundaries of power and authority vested in the ED, ensuring checks and balances in its operations.[25][26]

See also

References

  1. ↑ "Official Website". Archived from the original on 10 July 2020. Retrieved 10 July 2020.
  2. ↑ "ED (Enforcement Directorate)". Department of Revenue, Ministry of Finance, Government of India. Archived from the original on 7 April 2018.
  3. ↑ "Misusing Enforcement Directorate For Political Benefits". Outlook (Indian magazine). 23 July 2023. Retrieved 12 August 2023.
  4. ↑ "MISUSE OF ED AND OTHER AGENCIES". The Economic Times. 10 August 2023. Retrieved 12 August 2023.
  5. ↑ "Only 23 convicted in 5,422 cases under PMLA till date: Govt to Lok Sabha". Hindustan Times. 26 July 2022. Archived from the original on 17 August 2022. Retrieved 18 August 2022.
  6. ↑ "NCRB Crime Statistics 2021 Vol 3" (PDF).
  7. ↑ "Organisational History". Enforcement Directorate. Archived from the original on 17 June 2016. Retrieved 10 August 2015.
  8. ↑ "Directorate of Enforcement". Archived from the original on 26 April 2012. Retrieved 20 May 2013.
  9. 1 2 "ED (Enforcement Directorate)". Directorate of Enforcement. Archived from the original on 26 January 2020.
  10. ↑ "ED website - FAQ". directorateofenforcement. Archived from the original on 7 September 2011. Retrieved 4 March 2012.
  11. ↑ "Only 23 convicted in 5,422 cases under PMLA till date: Govt to Lok Sabha". Hindustan Times. 26 July 2022. Archived from the original on 17 August 2022. Retrieved 18 August 2022.
  12. ↑ "ED Action Has Increased Dramatically Under Modi Govt, Parliament Reply Reveals". The Wire. 26 July 2022. Archived from the original on 17 August 2022. Retrieved 18 August 2022.
  13. ↑ "Opposition's Case Against "Misuse Of Agencies" Rejected By Supreme Court". NDTV. 5 April 2023. Archived from the original on 14 June 2023. Retrieved 14 June 2023.
  14. ↑ "'Keep Quiet Or ED May Arrive At Your Home': Meenakshi Lekhi Warns Oppn During Debate Over Delhi Ordinance Bill (WATCH)". Free Press Journal. Archived from the original on 4 August 2023. Retrieved 4 August 2023.
  15. ↑ "'Stop Misuse of PMLA to Target Scholars and Activists': Citizens and Rights Groups in Open Letter". The Wire (India). 23 May 2023. Retrieved 2 September 2023.
  16. ↑ "The letter comes after several women scholars and activists were repeatedly summoned by investigative authorities in the last few months". www.newsclick.in. 23 May 2023. Retrieved 2 September 2023.
  17. ↑ @Digitalhindi (3 January 2023). "What is ED and ED Full Form". Archived from the original on 4 January 2023. Retrieved 4 January 2023.
  18. ↑ Sarda, Kanu (18 August 2022). "Explained: Supreme Court's big verdict on Prevention of Money Laundering Act". India Today. Retrieved 18 August 2022.
  19. ↑ Rajagopal, Krishnadas (27 July 2022). "Supreme Court upholds powers of arrest, raids, seizure under PMLA". The Hindu. Retrieved 18 August 2022.
  20. ↑ "Supreme Court upholds powers of Enforcement Directorate". The Telegraph Online. 22 July 2022. Retrieved 18 August 2022.
  21. ↑ Ramakrishnan, Nitya (3 August 2022). "Undue Process: Here's What's Wrong With the Supreme Court's PMLA Judgment". The Wire. Retrieved 18 August 2022.
  22. ↑ "Narrow view: On the Supreme Court's PMLA verdict". The Hindu. 29 July 2022. Retrieved 18 August 2022.
  23. ↑ Rajagopal, Krishnadas (22 August 2022). "Supreme Court agrees to list petition for review of the judgment that upheld PMLA amendments". The Hindu. Retrieved 23 August 2022.
  24. ↑ Scroll Staff (25 August 2022). "PMLA verdict: Supreme Court says two aspects of judgement need reconsideration". Scroll.in. Retrieved 25 August 2022.
  25. ↑ "ED officials not police officers, can't make arrests under PMLA: TN Minister Senthil Balaji tells SC". The Indian Express. 26 July 2023. Retrieved 26 August 2023.
  26. ↑ "ED cannot be a law unto itself, says SC". Hindustan Times. 21 August 2023. Retrieved 26 August 2023.
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