ENFORCEMENT DIRECTORATE - POLITY

ENFORCEMENT DIRECTORATE - POLITY

News: ED arrests two persons in Delhi excise policy case 

What's in the news?

●       The Enforcement Directorate arrested two persons, including the director of Aurobindo Pharma, in connection with the money-laundering probe in the Delhi excise policy case.

Enforcement Directorate:

●       It is responsible for enforcing economic laws and fighting economic crime in India.

●       In 1956, Enforcement Directorate was founded as the "Enforcement Unit" within the Department of Economic Affairs under the Ministry of Finance.

●       In 1957, it was renamed as "Enforcement Directorate".

●       Its headquarter is in Delhi and branches in Mumbai, Kolkata and Chennai.

Cases dealt by ED:

The Enforcement Directorate investigate cases related to

●       Economic crimes.

●       Violations of foreign exchange laws.

●       It originally dealt with Exchange Control Laws violations under Foreign Exchange Regulation Act, 1947 (FERA).

At present Enforcement Directorate deals with 4 laws:

  1. The Prevention of Money Laundering Act, 2002 (PMLA)
  2. The Foreign Exchange Management Act, 1999 (FEMA)
  3. The Fugitive Economic Offenders Act, 2018 (FEOA)
  4. Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) 

Control:

●       It is part of the Department of Revenue, Ministry of Finance.

●       The prime objective of the Enforcement Directorate is to enforce the provisions of Foreign Exchange Management Act, 1999 (FEMA) and Prevention of Money Laundering Act, 2002 (PMLA).