Enforcement Directorate

Error creating thumbnail:

Enforcement_Directorate

Enforcement Directorate

The Enforcement Directorate (ED) is a law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India. It is part of the Department of Revenue under the Ministry of Finance. The agency is tasked with enforcing the provisions of two key laws: the Foreign Exchange Management Act, 1999 (FEMA) and the Prevention of Money Laundering Act, 2002 (PMLA).

History

The Enforcement Directorate was established in 1956, initially as an 'Enforcement Unit' under the Department of Economic Affairs. It was later renamed as the Enforcement Directorate in 1957. The agency's primary objective is to investigate and prosecute cases related to money laundering, foreign exchange violations, and other financial crimes.

Functions

The main functions of the Enforcement Directorate include:

• Investigating cases of money laundering under the Prevention of Money Laundering Act, 2002.
• Investigating violations of the Foreign Exchange Management Act, 1999.
• Prosecuting offenders in the Special Courts established under the PMLA.
• Confiscating properties involved in money laundering activities.
• Coordinating with other domestic and international agencies to combat economic crimes.

Organizational Structure

The Enforcement Directorate is headed by a Director, who is an officer of the Indian Revenue Service or the Indian Police Service. The agency has its headquarters in New Delhi and operates through zonal offices located in major cities across India. Each zonal office is headed by a Joint Director.

Key Legislation

The Enforcement Directorate operates under the following key legislations:

• Foreign Exchange Management Act, 1999 (FEMA): This act aims to facilitate external trade and payments and promote the orderly development and maintenance of the foreign exchange market in India.
• Prevention of Money Laundering Act, 2002 (PMLA): This act aims to prevent money laundering and provide for the confiscation of property derived from money laundering.

Notable Cases

The Enforcement Directorate has been involved in several high-profile cases, including:

• The 2G spectrum case
• The Commonwealth Games scam
• The Vijay Mallya money laundering case
• The PNB scam involving Nirav Modi

Related Agencies

The Enforcement Directorate works closely with other agencies, including:

• Central Bureau of Investigation (CBI)
• Income Tax Department
• Financial Intelligence Unit
• Reserve Bank of India

See Also

• Central Bureau of Investigation
• Income Tax Department
• Financial Intelligence Unit (India)
• Reserve Bank of India
• Prevention of Money Laundering Act, 2002
• Foreign Exchange Management Act, 1999