ED can redact sensitive portion from documents, recording ground for arrest’

ED can redact sensitive portion from documents, recording ground for arrest’

Subject: Polity

Section: National organisation

Context: SC has ruled that the agency must furnish the grounds of arrest in writing to the accused at the time of arrest.

More about the news:

• The Supreme Court, in a ruling on October 3, directed the Enforcement Directorate (ED) to provide written grounds of arrest to accused individuals, allowing redaction of sensitive information to protect investigations. 
• It emphasized that the ED should not label non-confessional responses during interrogation as ‘evasive.’
• The decision aimed to ensure fairness, legal counsel access, and compliance with constitutional rights, countering varying practices by ED officers across the country.
• The judgment highlighted the importance of written arrest grounds and cautioned against expecting confessions during custodial interrogations.

Some facts Enforcement Directorate:

• It is a Multi-Disciplinary Organization mandated with the task of enforcing the provisions of two special fiscal laws – Foreign Exchange Management Act, 1999 (FEMA) and Prevention of Money Laundering Act, 2002 (PMLA). 
• The origin of this Directorate goes back to 1st May, 1956, when an‘Enforcement Unit’was formed, in Department of Economic Affairs, for handling Exchange Control Laws violations under Foreign Exchange Regulation Act, 1947 .
• In the year 1957, this Unit was renamed as ‘Enforcement Directorate’.
• The administrative control of the Directorate was transferred from Department of Economic Affairs toDepartment of Revenue in 1960.
• The Directorate enforces two laws;
  • FEMA, a Civil Law having quasi-judicial powers, for investigating suspected contraventions of the Exchange Control Laws and Regulations with the powers to impose penalties on those adjudged guilty.
  • PMLA, a Criminal Law, whereby the Officers are empowered to conduct enquiries to locate, provisionally attach/confiscate assets derived from acts of Schedules Offenses besides arresting and prosecuting the Money Launderers.
• The ED has its headquarters in New Delhi and has many regional offices all over the country.
• Composition– Besides directly recruiting personnel, the Directorate also draws officers from different Investigating Agencies, viz., Customs & Central Excise, Income Tax, Police, etc. on deputation.
• It is headed by the Director of Enforcement, who is an IRS officer Other functions:

What is ED’s Jurisdiction:

• Both FEMA or PMLA apply to the whole of India. So, the ED can take action against any person on which this act applies.
• Cases under FEMA may lie in civil courts where PMLA cases will lie in criminal courts.
• The agency has jurisdiction over a person or any other legal entity who commits a crime.
• All the public servants come under the jurisdiction of the agency if they are involved in any offence related to money laundering.
• ED can not take an action suo motu. One has to complain to any other agency or Police first and then ED will investigate the matter and will identify the accused.
• The ED will investigate the matter and may attach the property of an accused person and also make an arrest and start proceeding with the violation of the provisions of FEMA and PMLA act.
• The matter will be resolved by way of adjudication by courts or PMLA courts.