ED-States tussle: SC moots mechanism to identify vendetta

  • January 26, 2024
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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ED-States tussle: SC moots mechanism to identify vendetta

Subject: POLITY

Section: National body

Context:

  • The Supreme Court called for a “pan­ India mechanism” to determine whether political vendetta or vindictiveness is a motive behind the Union government unleashing the Enforcement Directorate (ED) on officials and Ministers in Opposition­ ruled States, and States then retaliating by arresting the Central agency’s officers.

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  • The court observed that, We should explore a fair and transparent mechanism or a body which will look into the interState ramifications, especially when different parties are at the Centre and States, and keep intact the object of punishing the guilty while preventing vindictive arrests. Unless that is evolved.
  • The court said that the mechanism should also ensure that the accused in genuine cases filed by the ED do not go scot free by crying “political vendetta”. “Allegations and counter allegations of political vendetta cannot be evolved as a paradise for those who are corrupt.
  • There should be some mechanism for screening, with a view to eliminate the apprehension of so­-called or actual political vendetta.
Enforcement Directorate (ED)

  • The Enforcement Directorate was established in the year 1956 as an ‘Enforcement Unit’ under the Department of Economic Affairs.
  • Later, in 1957, this Unit was renamed as ‘Enforcement Directorate’.

Administrative control

  • Presently, it is under the administrative control of the Department of Revenue (under the Ministry of Finance) for operational purposes.

Functions

  • ED is responsible for enforcement of the Foreign Exchange Management Act, 1999 (FEMA), and certain provisions under the PMLA.
  • ED has the power to attach the asset of the culprits found guilty of the violation of FEMA.
  • It has also been empowered to undertake, search, seizure, arrest, prosecution action, and survey, etc. against the offences committed under PMLA.

Appointment of Director of ED

  • The ED Director is appointed by the central government on the recommendation of a committee:
    • chaired by the Central Vigilance Commissioner and
    • members comprising of Vigilance Commissioners, Home Secretary, Secretary DOPT and Revenue Secretary.
ED-States tussle: SC moots mechanism to identify vendetta Polity