Functions of the Enforcement Directorate (ED): A Comprehensive Overview

The Enforcement Directorate (ED) plays a pivotal role in maintaining financial discipline and combating economic offences in India. As the enforcement arm under the Department of Revenue, Ministry of Finance, the ED is entrusted with enforcing two primary laws:

1. Foreign Exchange Management Act, 1999 (FEMA)
2. Prevention of Money Laundering Act, 2002 (PMLA)

Key Functions of the Enforcement Directorate

1. Intelligence Collection and Dissemination

• Objective: To collect and analyze intelligence related to violations of FEMA, 1999.
• Sources: Intelligence inputs come from central and state intelligence agencies, complaints, and other reliable channels.
• Focus Areas: Activities like hawala transactions, foreign exchange racketeering, non-realization of export proceeds, and other FEMA violations.

2. Investigation of FEMA Violations

• The ED investigates suspected violations of FEMA, 1999, focusing on:
  • Illicit foreign exchange dealings.
  • Hawala operations.
  • Non-repatriation of foreign earnings.
  • Other irregularities under FEMA.

3. Adjudication and Penalty Realization

• The ED adjudicates cases of violations under:
  • The erstwhile FERA, 1973.
  • The current FEMA, 1999.
• Upon conclusion of proceedings, the ED ensures the realization of penalties imposed on offenders.

4. Handling Appeals and Prosecution Cases

• The Directorate manages adjudication, appeals, and prosecution cases under the erstwhile FERA, 1973.

5. Preventive Detention under COFEPOSA

• The ED processes and recommends preventive detention cases under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA) to prevent repeat offences and safeguard the nation’s economic interests.

6. Enforcement of PMLA

• The ED is tasked with:
  • Conducting surveys, searches, seizures, arrests, and prosecution actions against offenders under the PMLA.
  • Ensuring that proceeds of crime are attached and confiscated as per the Act.

7. Mutual Legal Assistance

• The ED facilitates international cooperation by:
  • Providing and seeking legal assistance in cases involving proceeds of crime.
  • Coordinating the transfer of accused persons and the attachment/confiscation of assets in contracting states under the PMLA.

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Our Strengths:

1. Expertise: Our lawyers possess in-depth knowledge and experience in dealing with PMLA violations and enforcement agency procedures.
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4. Confidentiality: We prioritize the utmost discretion in handling all cases to protect client interests.