Enforcement Directorate (ED) in India

Enforcement Directorate (ED) in India

PMLA (Prevention of Money Laundering Act)

• Enacted in 2002 to prevent money laundering and to confiscate property derived from money laundering
• ED is the implementing agency for PMLA
• PMLA applies to all citizens and entities, including companies, firms, and societies
• Offences under PMLA are cognizable and non-bailable

FEMA (Foreign Exchange Management Act)

• Enacted in 1999 to regulate foreign exchange transactions and payments
• FEMA is a civil law, whereas PMLA is a criminal law
• ED is responsible for enforcing FEMA provisions related to foreign exchange violations
• FEMA violations can lead to penalties, fines, and even arrest

Money Laundering

• Concealing or disguising the source of illegal funds to make them appear legitimate
• ED investigates and prosecutes money laundering cases under PMLA
• Money laundering is a predicate offence to other crimes, such as drug trafficking, terrorism, and fraud

ED Organisation

• Headquartered in New Delhi, with regional offices and zonal offices across India
• ED is headed by a Director, who is responsible for policy and decision-making
• ED has various departments, including investigation, prosecution, and policy
• ED works closely with other law enforcement agencies, such as the Central Bureau of Investigation (CBI) and the Income Tax Department

Major Cases

• 2G Spectrum Scam: ED attached assets worth ₹22,000 crores in connection with the 2G spectrum scam
• Coal Block Allocation Scam: ED attached assets worth ₹186 crores in connection with the coal block allocation scam
• Vijay Mallya Case: ED attached assets worth ₹9,000 crores in connection with the Kingfisher Airlines fraud case
• Nirav Modi Case: ED attached assets worth ₹7,000 crores in connection with the Punjab National Bank fraud case

Enforcement Directorate (ED) in India

PMLA (Prevention of Money Laundering Act)

• Enacted in 2002 to prevent money laundering and confiscate property derived from it
• Applies to all citizens and entities, including companies, firms, and societies
• Offences under PMLA are cognizable and non-bailable
• ED is the implementing agency for PMLA

FEMA (Foreign Exchange Management Act)

• Enacted in 1999 to regulate foreign exchange transactions and payments
• A civil law, whereas PMLA is a criminal law
• ED enforces FEMA provisions related to foreign exchange violations
• FEMA violations can lead to penalties, fines, and even arrest

Money Laundering

• Concealing or disguising the source of illegal funds to make them appear legitimate
• A predicate offence to other crimes, such as drug trafficking, terrorism, and fraud
• ED investigates and prosecutes money laundering cases under PMLA

ED Organisation

• Headquartered in New Delhi with regional and zonal offices across India
• Headed by a Director, responsible for policy and decision-making
• Comprises various departments, including investigation, prosecution, and policy
• Collaborates with other law enforcement agencies, such as the Central Bureau of Investigation (CBI) and the Income Tax Department

Major Cases

2G Spectrum Scam

• ED attached assets worth ₹22,000 crores

Coal Block Allocation Scam

• ED attached assets worth ₹186 crores

Vijay Mallya Case

• ED attached assets worth ₹9,000 crores in connection with Kingfisher Airlines fraud case

Nirav Modi Case

• ED attached assets worth ₹7,000 crores in connection with Punjab National Bank fraud case