Details of the Enforcement Directorate:
#GS II #Statutory and Non-Statutory Bodies
Topic Statutory and Non-Statutory Bodies:
Context:
- The Enforcement Directorate’s money laundering probe led to the detention of Chief Engineer Virendra Kumar Ram, who has now been suspended by the Rural Development Department of the Jharkhand government.
- A special PMLA court in this city mandated that Mr. Ram spend five days in ED detention on February 23. The issue involves alleged irregularities in the manner a number of activities were carried out.
What exactly is the Directorate of Enforcement (ED)?
- The multifunctional organisation known as the Directorate of Enforcement is in charge of looking into offences including money laundering and violations of the rules governing foreign exchange (ED).
- The Department of Revenue of the Ministry of Finance is in charge of managing it.
- Indian law and the constitution are closely upheld by the Enforcement Directorate, one of the government of India’s top financial investigating divisions.
Where Does the Origin of ED Occur?
- The Department of Economic Affairs first established this Directorate on May 1st, 1956, when it created a “Enforcement Unit” to deal with violations of the Foreign Exchange Regulation Act (FERA), 1947, which dealt with FX Control Rules.
- The Director of Enforcement worked for the Law Service of India and was based in Delhi.
- It had two branches, one each in Bombay and Calcutta.
- In 1957, the name of this Unit was changed to the “Enforcement Directorate,” and a second branch was opened in Madras (now Chennai).
- In 1960, the Directorate’s management was transferred from the Department of Economic Affairs to the Department of Revenue.
- As time went on, FERA 1947 was revoked and FERA 1973 was put in its place.
- With the advent of the economic liberalisation movement, the regulatory statute FERA, 1973, was repealed, and on June 1st, 2000, the Foreign Exchange Management Act, 1999 (FEMA), which replaced it, took effect.
- In accordance with the International Anti-Money Laundering framework, the Prevention of Money Laundering Act, 2002 (PMLA), was also passed, and on July 1st, 2005, ED was granted responsibility for its enforcement.
What is the structure of the ED?
- The Directorate of Enforcement, which has its main office in New Delhi, is under the direction of the Director of Enforcement.
- The five regional offices, which are situated in Mumbai, Chennai, Chandigarh, Kolkata, and Delhi, are under the supervision of Special Directors of Enforcement.
- The Directorate also has 10 Zone offices, each of which is run by a Deputy Director, in addition to 11 sub-Zonal Offices, each of which is controlled by an Assistant Director.
- Officers are either either employed or recruited by drawing them away from other investigative agencies.
- It is made up of representatives from the Indian Revenue Services (IRS), the Indian Police Services (IPS), and the Indian Accounting Services (IAS) (Indian Administrative Services).
- Duration: The Central Bureau of Investigation (CBI) and Enforcement Directorate directors’ tenure may be extended from two to a maximum of five years according to two orders that the President of India issued in November 2021.
- Both the Delhi Special Police Establishment (DSPE) Act, 1946 (for ED) and the Central Vigilance Commission (CVC) Act, 2003 (for CV Commissioners) have been amended to give the government the power to keep the two chiefs in their positions after their initial two-year terms have ended for an additional year.
- The Central Agency’s chiefs currently serve fixed terms of two years, however they are now qualified for three annual extensions.
- However, no more extensions will be granted following a total of five years, which includes the duration stipulated in the first appointment.
