Enforcement Directorate – Overview, Structure, and Functions

ED (full form of ED is enforcement directorate) is an organization that investigates offenses of money laundering and violation of foreign exchange laws. This organization works under the department of revenue and the ministry of finance, and the financial investigation agency strictly follow the constitution and laws of India.

The enforcement directorate originated on 1st May 1956 and formed the enforcement unit for controlling the foreign exchange under FERA, 1947. The headquarter was situated in Delhi and headed by the legal service officer, and it had two branches 1st branch was located in Bombay, and 2nd one was in Calcutta. In 1957, the unit’s name changed to an enforcement directorate, and a new branch was opened in Madras. In 1960, administrative control was transferred from the Department of Economic Affairs to the revenue department. After some time, FERA 1947 was replaced by FERA 1973.

Overview of enforcement directorate

Structure of enforcement directorate

The enforcement directorate headquarters is situated in Delhi and is headed by directors of enforcement. There are five branches in Mumbai, Chennai, Kolkata, Chandigarh, and Delhi. Also, there are 1tenzonal offices that come under the deputy director and 11 subzonal headed by the assistant directorate. This office contains IRS (Indian revenue services), IPS(Indian police services), IAS(Indian administrative service ), income tax officers, excise officers, customs officers, and police. In November 2021, the Indian president passed two ordinances allowing the union to extend the enforcement directorate tenure and the central bureau of investigation from two to five years. 

Functions of the enforcement directorate

There are many functions, including the following acts:

• COFEPOSA-  COFEPOSA 1974 increases the power of cases of prevention detention according to a contravention of FEMA 
• FEMA( FOREIGN EXCHANGE MANAGEMENT ACT), 1999 – It is a civil law used to consolidate the laws related to external trade and payments and maintain the foreign exchange markets in India enforcement directorate is responsible for the investigation into contraventions of foreign exchange laws 
• PMLA (PREVENTION OF MONEY LAUNDERING ACT)2002–  Financial action task force is responsible for establishing PMLA  ED. It is responsible for executing the provisions of PMLA and conducting investigations, and tracing the assets used in crime. 

Enforcement directorate jurisdiction

The enforcement directorate can take action against any person because the FEMA and PMLA apply all over the country. The FEMA cases go under the civil court, and the PMLA cases lie under the criminal court. Suppose any civil servant commits any offense, so they come under the jurisdiction of this agency. ED can not take any action Suo Motu, which means if any person commits any crime so the first police will investigate, and after that enforcement directorate and then the proceeding will start for the violation of FEMA and PMLA act. 

According to the supreme court judgment, there is an allegation of  misuse of PMLA by the government and enforcement directorate, and the allegations are:

Lack of transparency and clarity

The enforcement case information report (ECIR) is equal to the FIR and considered only as internal documents given to the accused. As a result, there is no clarity in ED investigation cases, which are also used for ordinary crimes. In July 2022, according to the union government, only 23 people were convicted in 5,422 cases which were registered under the PMLA. The convection rate was less than 0.5% 17 years after the law was passed in the Modi’ssecond term. The ED cases have been raised six times, leading to the accusation by the opposition party stating that the BJP government misused the enforcement directorate.

FAQS

• What are the duties of the enforcement directorate?

Ans:- The duties of Ethe D are to investigate the offenses of money laundering in violation of foreign exchange laws. 

• What type of body  is the enforcement directorate 

Ans:- Ed is a lion enforcement agency of the government of India responsible for enforcing economic laws in fighting financial crimes.

• How to inform the enforcement directorate?

Ans:- Before complaining, the ED has to complain to any other agency of the people, after which the enforcement directorate investigates the case and identifies the accused PMLA comprises 157 offenses related to money laundering.

• What is the full form of ED?

Ans:- ED full form is Enforcement Directorate.