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Enforcement Directorate (ED) - Coggle Diagram
Enforcement Directorate (ED)
Its establishment
To confiscate and seize the property obtained from the laundered money; and
To deal with any other issue connected with money laundering in India.
To prevent and control money laundering.
When does does the ED step in?
Whenever any offence is registered by a local police station, which has generated proceeds of crime over and above ₹1 crore, the investigating police officer forwards the details to the ED.
Alternately, if the offence comes under the knowledge of the Central agency, they can then call for the First Information Report (FIR) or the chargesheet if it has been filed directly by police officials.
Roles and functions of the ED
Attachment of property:
Under Section 50, the ED can also directly carry out search and seizure without calling the person for questioning.
Arrest and detentions:
On the basis of that, the authorities will decide if an arrest is needed as per Section 19 (power of arrest).
Filing of chargesheet:
If the person is arrested, the ED gets 60 days to file the prosecution complaint (chargesheet) as the punishment under PMLA doesn’t go beyond seven years.
Summon, Search and seizure:
The ED carries out search (property) and seizure (money/documents) after it has decided that the money has been laundered
Way forward
ED has to walk a tightrope to safeguard its integrity
The need of the hour could be systemic fixes
Adjudicating authorities must work in cooperation and ensure the highest standards of transparency and fairness.
The trust in premier investigating institutions, and their credibility must be preserved
The fight against corruption is intimately linked with the reform of the investigations.
Context
Many states often accuse the agency of being a tool used by the Centre to coercively engage politicians for vested interests.
Supreme Court ruled on the procedures for arrests made by the Enforcement Directorate (ED).
What is Enforcement Directorate (ED)?
Today, it is a multi-dimensional organisation investigating economic offences under the:
Fugitive Economic Offenders Act
Foreign Exchange Management Act
Prevention of Money Laundering Act (PMLA)
Foreign Exchange Regulation Act (FERA)
It goes back to May 1, 1956, when an ‘Enforcement Unit’ was formed in the Department of Economic Affairs.
ED was formed in 1957 to look into cases of foreign exchange-related violations, a civil provision.
Why ED mostly grips Politicians?
Selective witch-hunt
Exposing rampant corruption
Investigation of foreign transactions
Allegations against ED
Violations of Rights
Functional opacity, Poor rate of conviction
Actual purpose denigrated
Under-trials and slower prosecution
Huge discretions, Used for petty crimes