Enforcement Directorate

Enforcement Directorate

Subject: Polity

Context: THE raids on the office of online news platform NewsClick and residences of its directors by the Enforcement Directorate (ED) continued for third day w.r.t. remittance cases.

Concept:

• 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).
• An ‘Enforcement Unit’ was formed in 1956 in Department of Economic Affairs, for handling Exchange Control Laws violations under Foreign Exchange Regulation Act, 1947.
• In the year 1957, it renamed as ‘Enforcement Directorate’. The administrative control of the Directorate was transferred from Department of Economic Affairs to Department of Revenue in 1960.
• The Enforcement Directorate recruits some of its officers directly while some others are appointed form other State agencies on deputation, like the Income Tax, Excise, departments, etc
• The Directorate primarily enforces two laws

1. FEMA, a Civil Law which has quasi-judicial powers
2. PMLA, a Criminal Law (Officers are empowered to conduct enquiries to locate, provisionally attach/confiscate assets derived from acts of Schedules Offences besides arresting and prosecuting the Money Launderers)

• It also performs following role:

1. Processing cases of fugitive/s from India under Fugitive Economic Offenders Act, 2018.
2. Sponsor cases of preventive detention under Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974(COFEPOSA) in regard to contraventions of FEMA.

• PMLA Court (one or more session courts)is designated for the trial of an offence punishable under section 4 of PMLA by the Central Government (in consultation with the Chief Justice of the High Court).
• Any appeal against any order passed by PMLA court can directly be filed in the High Court for that jurisdiction.