Enforcement Directorate

Why in News?

• Amid heavy police deployment and detentions to prevent protests by Congress workers in front of the Enforcement Directorate (ED)

About

• The Directorate of Enforcement is a multi-disciplinary organisation mandated to investigate of offences of money laundering and violations of foreign exchange laws. 

• The statutory functions of the Directorate include enforcement of the following Acts:

  • The Prevention of Money Laundering Act, 2002 (PMLA): It is a criminal law enacted to prevent money laundering and to provide for confiscation of property derived from, or involved in, money laundering and for matters connected therewith or incidental thereto. ED has been given the responsibility to enforce the provisions of the PMLA by conducting an investigation to trace the assets derived from proceeds of crime, to provisionally attach the property and ensuring the prosecution of the offenders and confiscation of the property by the Special court

  • The Foreign Exchange Management Act, 1999 (FEMA): It is a civil law enacted to consolidate and amend the laws relating to facilitating external trade and payments and to promote the orderly development and maintenance of the foreign exchange market in India. ED has been given the responsibility to conduct an investigation into suspected contraventions of foreign exchange laws and regulations and to adjudicate and impose penalties on those adjudged to have contravened the law

  • The Fugitive Economic Offenders Act, 2018 (FEOA): This law was enacted to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts. It is a law whereby the Directorate is mandated to attach the properties of the fugitive economic offenders who have escaped from India warranting arrest and providing for the confiscation of their properties to the Central Government

  • The Foreign Exchange Regulation Act, 1973 (FERA): The main functions under the repealed FERA are to adjudicate the Show Cause Notices issued under the said Act up to 31.5.2002 for the alleged contraventions of the Act which may result in the imposition of penalties and to pursue prosecutions launched under FERA in the concerned courts

  • Sponsoring agency under COFEPOSA: Under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA), this Directorate is empowered to sponsor cases of preventive detention with regard to the contraventions of FEMA