- February 12, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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.
- 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
- FEMA, a Civil Law which has quasi-judicial powers
- 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:
- Processing cases of fugitive/s from India under Fugitive Economic Offenders Act, 2018.
- 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.