Directorate of Enforcement Flashcards
Q. What are some key facts about “Directorate of Enforcement (ED)” ?
Ans : 1. Multi-disciplinary organisation mandated to investigate economic crimes and violations of foreign exchange laws.
2. Works under the Department of Revenue, Ministry of Finance.
Q. How is the Director of ED appointed ?
Ans : - Appointed as per provisions of CVC Act 2003.
- Tenure should be “not less than two years,” and any transfer has to be sanctioned by the appointing committee chaired by CVC.
- Mandatory 2 year appointment period is followed by a maximum of three annual extensions under the CVC Act of 2021.
Q. What are the powers of the Directorate of Enforcement (ED) ?
Ans : 1. Power to seize assets.
2. Power to summon : ED has the same as a civil court regarding discovery, inspection, production of evidence, summons, examining, issuing commissions, etc.
3. Power to arrest : can investigate and make arrests for violation of PMLA 2002 and FEMA 1999 without waiting for registration of a formal FIR by police.
4. Record Admissibility : statements recorded by ED officials can be admitted as evidence in court and thus not subject to challenge on the grounds of being self-incriminatory.
5. Recovery of Fines, Penalties and Arrears of Penalties by the concerned person under the FEMA 1999.
Q. What are the issues with the Directorate of Enforcement (ED) ?
Ans : 1. Abysmal convictions rate : From 2014-2022, as low as 0.5%.
2. Lack of transparency : Perceptions of being used as a political tool by the ruling party.
3. Falling credibility : Allegations of corruption, lack of impartiality, and a close nexus with the political class.
4. Lack of workforce.
Q. What are some Way forwards for the “Directorate of Enforcement” ?
Ans : 1. Enhancing Capacity : increased workforce and proper training in modern technology .
2. Regulation : Discretion exercised by ED should be guided by rule of law and must be transparent, arbitrary and based on facts.
3. Reducing Pendency : Measures such as Fast Track courts and special benches.
4. Oversight committee: To overlook and streamline the case selection process based on objective criteria.
5. Awareness and Protection : Public awareness should be generated about ED’s role, reform it’s image and, encourage whistleblowers to come forward.
