ENFORECEMNT DIRECTORATE
- October 20, 2020
- Posted by: OptimizeIAS Team
- Category: DPN Topics
No Comments
Subject: National Organisation
Context: Enforcement directorate questioned former J&K CM regarding misappropriation of funds.
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).
- In the year 1957, this Unit was renamed as ‘Enforcement Directorate’. The administrative control of the Directorate was transferred from Department of Economic Affairs to Department of Revenue in 1960.
- For a short period of 04 years (1973 – 1977), the Directorate also remained under the administrative jurisdiction of Department of Personnel & Administrative Reforms.
Powers:
- 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 Offences besides arresting and prosecuting the Money Launderers.
Composition:
- Besides directly recruiting personnel, the Directorate also draws officers from different Investigating Agencies, viz., Customs & Central Excise, Income Tax, Police, etc. on deputation.
Other functions:
- 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.
Special courts:
- For the trial of an offence punishable under section 4 of PMLA, the Central Government (in consultation with the Chief Justice of the High Court), designates one or more Sessions Court as Special Court(s). The court is also called “PMLA Court”.
- Any appeal against any order passed by PMLA court can directly be filed in the High Court for that jurisdiction