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The Enforcement Directorate (ED) is one of several government organizations responsible for law enforcement, research, intelligence & evaluation of high-profile cases involving frauds, money laundering, and other illegal activities.
In Indian politics, the phrase “Enforcement Directorate” is much sought after. However, most people are unaware of this phrase. So, in this post, we’ve gone through the concept and functions of the (ED) Enforcement Directorate, also called as the ED.
The Directorate of Enforcement, with its headquarters in New Delhi, was founded in 1956. It is in charge of enforcing the Foreign Exchange Management Act of 1999 (FEMA) and some clauses of the Money Laundering Prevention Act. For operational reasons, the Directorate is under the administrative supervision of the Department of Revenue; the policy elements of the FEMA, its law, and its modifications are under the purview of the Department of Economic Affairs. On the other hand, the Department of Revenue is in charge of policy matters relating to the PML Act. Prior to the implementation of FEMA on June 1, 2000, the Directorate implemented laws under the Foreign Exchange Regulation Act of 1973.
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The parent entity of the Enforcement Directorate is the Department of Revenue of the Ministry of Finance. The Enforcement Directorate is divided into 10 Zonal offices, each led by a Deputy Director, and 11 sub-Zonal offices, each led by an Assistant Director.
Some of the Enforcement Directorate’s officers are hired directly, while others are delegated from other state agencies such as the Income Tax, Excise, and other departments.
The officers come from the IAS (Indian Administrative Services), IRS (the Indian Revenue Service), IPS (the Indian Police Service), ICLS (the Indian Corporate Law Service, and other government agencies.
1. Foreign Exchange Management Act, 1999: In India, the Act, passed in 1999, aimed to control foreign exchange, trade & commerce, development, and maintenance. Foreign exchange offences are classified as civil offences under the Act. It is based on civil law and has quasi-judicial powers. Since the year 2000, the Enforcement Directorate has been enforcing this legislation.
2. Prevention of Money Laundering Act, 2002: The Act was passed in 2002, but it has only been in force since July 1, 2005, when it was turned over to the ED for execution. It is a matter of criminal law. It focuses with the control of money laundering, the seizure of the accuser’s property gained from the laundered money, and other rules and penalties.
For the most part, the Enforcement Directorate serves as an Intelligence and Enforcement agency. To combat money laundering, it collaborates with the Financial Intelligence Unit India (FIU-IND).
3. Fugitive Economic Offenders Act, 2018: Fugitive Economic Offenders Act, 2018 was enacted as per the provisions of the Prevention of Money Laundering Act of 2002. The FEOA 2018 empowers any special court for the purpose of seizing and confiscating the property of criminals accused with a crime worth more than Rs 100 crores who also try to avoid legal procedures.
As previously stated, the Enforcement Directorate’s major functions are to implement the budgetary Acts FEMA 1999 and PMLA 2002. The ED’s other functions under these Acts are listed below:-
Mallya has also been charged with money laundering under the PMLA by the Enforcement Directorate. On the basis of a CBI investigation, the ED filed a complaint accusing him and A. Raghunathan (Kingfisher Airlines’ CFO) of a 900-crore default with IDBI Bank officials.
Directorate Enforcement is a government department dedicated to the advancement of our country. This is a government-supported agency that works to prevent and control money laundering in India. It is serving the nation with a good and clear vision. This agency is supported by a large number of officers from several departments. They investigate and settle the problem through the adjudication process, as well as conduct a variety of other functions by utilizing the powers granted to them by an agency. Its purpose is to boost our economy. It convicts individuals who commit fraud or engages in money laundering, as well as those who violate the requirements of the FEMA and PMLA. Its efforts in monitoring and combating money laundering, as well as serving as the guardian of two essential laws or acts, would help India improve and expand its economy.
Read our article:Penalties under FEMA Act Act, 1999
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