ED stands for Enforcement Directorate. It is a multidisciplinary, economic intelligence organization that investigates economic crimes and violations of foreign exchange laws. It is responsible for the implementation of economic laws in the country. ED works under the Department of Revenue, Ministry of Finance, Government of India.
The Enforcement Directorate has 10 zonal offices, the head of these offices are Deputy Directors, and Assistant Directors manage 11 sub-zonal offices. It ensures the enforcement of the Foreign Exchange Management Act, 1999 (FEMA), and certain services under the Prevention of Money Laundering Act (PMLA), 2002.
A Legal Service Officer manage the headquarters of ED in Delhi, and the officers from the Reserve Bank of India (RBI) and three inspectors of a special police establishment assist the Director of Enforcement in the initial phase of their journey. There are two more branches in Bombay and Calcutta.
History of ED
The Directorate of Enforcement was established on May 1, 1956, when an ‘Enforcement Unit’ under the control of the Department of Economic Affairs was established under the Foreign Exchange Regulation Act, 1947 (FERA, 1947) to prevent violations of exchange control laws.
In 1957 this unit was renamed the Enforcement Directorate, and another branch was opened in Madras, Tamil Nadu. The headquarters are situated in New Delhi. In cities like Kolkata, Mumbai, Chandigarh, Hyderabad, etc. there are many regional offices of ED. It resolves issues by adjudication, and provisions for appeal in both acts, and has its own courts for trials and appellate tribunals.
The administrative control of the Directorate was transferred from the Department of Economics Affairs to the Department of Revenue in 1960. FERA’47 was repealed and replaced by FERA’73. For nearly four years (1973–1977), the Directorate was under the administrative jurisdiction of the Department of Personnel and administrative reforms.
It has subzonal offices in various cities. It consists of Indian Revenue Service, Indian Police Service, Indian Corporate Law Service, and Indian Administrative Service officers.
Main Objective of ED
- The primary goal of the Enforcement Directorate is to ensure the regulation of the following acts:
- The Prevention of Money Laundering Act, 2002 (PMLA)
- The Foreign Exchange Management Act, 1999 (FEMA)
- The Fugitive Economic Offenders Act, 2018 (FEOA)
- The Foreign Exchange Regulation Act, 1973 (FERA)
- Sponsoring agency under COFEPOSA
- The primary objective of the ED is to enforce two major Indian government laws, including the Foreign Exchange Management Act (FEMA) of 1999 and the Money Laundering Prevention Act (PMLA) of 2002.
- It is a special investigating body with the supreme goal of combating money laundering in India.
- To investigate suspected FEMA violations such as hawala transactions, export proceeds, non-realization of export proceeds, foreign exchange violations, and other FEMA violations.
- to collect, develop, and disseminate intelligence information related to violation of FEMA, 1999.
- Identifying defaulters of FEMA i.e. prohibition of transfer, conversation, disposition or movement of property as per the chapter III of the Money Laundering Act (Section 2(1) (d)).
- To take strict actions against offenders of PMLA act. Conduct prosecution action and carry out surveys against criminals.
Work Operation of ED
- The intelligence reports are provided from different sources, including state and intelligence departments, grievances, etc., to gather, establish, and disseminate information related to FEMA violations, 1999.
- Examining suspected breach of the 1999 FEMA regulations, including acts such as hawala foreign exchange racketeering, non-realization of export proceeds, non-repatriation of international trade, and other forms of FEMA violations, 1999.
- adjudicating cases of former FERA 1973 and FEMA 1999 violations.
- to collect the fines imposed after the adjudication process.
- Appeals, and legal activities under the prior FERA 1973 operation.
- to carry out investigations, searches, inspections, convictions, lawsuits, etc. against PMLA suspects.
- As a premier financial investigation agency of the Government of India, the Enforcement Directorate functions in strict consent with the Constitution and Laws of India. It respects the guidance of all Lawful Authorities. We endeavor to establish and maintain high professional standards and credibility.
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