Title : THE ENFORCEMENT DIRECTORATE

Date : Dec 08, 2021

Description :

GS II

 

Topic à Statutory & Non-Statutory Bodies

 

• Enforcement Directorate Basic Info:

 

• It is a multidisciplinary organisation tasked with enforcing the provisions of two special fiscal laws: the Foreign Exchange Management Act (FEMA) of 1999 and the Prevention of Money Laundering Act (PMLA) of 2002. (PMLA).

 

• Background:

 

• This Directorate dates back to May 1, 1956, when the Department of Economic Affairs established a 'Enforcement Unit' to handle Exchange Control Law infractions under the Foreign Exchange Regulation Act of 1947 (FERA '47).
• This unit was renamed the 'Enforcement Directorate' in 1957. In 1960, the Directorate's administrative supervision was transferred from the Department of Economic Affairs to the Department of Revenue.
• The Directorate was also under the administrative jurisdiction of the Department of Personnel and Administrative Reforms for a four-year period (1973–1977).

 

• Powers:

 

• The Directorate is responsible for enforcing two laws:

 

• FEMA is a civil law with quasi-judicial powers that is used to investigate alleged violations of the Exchange Control Laws and Regulations, as well as to impose penalties on those found guilty.
• PMLA is a criminal law that allows officers to conduct investigations in order to locate, provisionally attach/confiscate assets acquired from Schedules Offenses, as well as arrest and prosecute money launderers.

 

• Composition:

 

• Apart from directly recruiting people, the Directorate also deputises officers from several Investigating Agencies, such as Customs and Central Excise, Income Tax, and Police.

 

 

• Other features include:

 

• Under the Fugitive Economic Offenders Act of 2018, cases of fugitive/s from India are being processed.
• In situations of FEMA violations, sponsor cases of preventive detention under the 1974 Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA).

 

• Courts of special jurisdiction:

 

• The Central Government (in collaboration with the Chief Justice of the High Court) designates one or more Sessions Courts as Special Courts for the trial of an offence punishable under section 4 of the PMLA (s). The court is also referred to as "PMLA Court."
• Any appeal against a PMLA court order can be filed directly with the High Court for that jurisdiction.

 

• Source à The Hindu à 07/12/21 à Page Number 4

Tags : PMLA , High Court