Enforcement Directorate:

GS Paper 3:

Syllabus: Important Security Agencies.

Context:

Congress MP Rahul Gandhi recently appeared before the Enforcement Directorate for the second day for questioning in a money-laundering case related to the National Herald newspaper.

About Enforcement Directorate:

1. The origin of this Directorate goes back to 1st May, 1956, when an ‘Enforcement Unit’ was formed, in the Department of Economic Affairs, for handling Exchange Control Laws violations under Foreign Exchange Regulation Act, 1947 (FERA ’47).
2. In the year 1957, this Unit was renamed as ‘Enforcement Directorate’.
3. Presently, it is part of the Department of Revenue, Ministry of Finance.
4. The Organization is 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).

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:

1. Processing cases of fugitive/s from India under Fugitive Economic Offenders Act, 2018.
2. 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.

InstaLinks:

Prelims Link:

1. What is FEMA?
2. What is PMLA?
3. What is COFEPOSA?

Mains Link:

How has ED become the weapon of choice today? Discuss.

Q. 5) Consider the following statements:

1. Enforcement Directorate is part of is part of the Department of Revenue, Ministry of Finance.
2. Any appeal against any order passed by PMLA court can directly be filed in the High Court for that jurisdiction.

Choose the correct answer using the codes given below:

1. 1 only.
2. 2 only.
3. Both.
4. None.

 Sources: the Hindu.