Updated March 22nd, 2024 at 16:22 IST

ED Kya Hain Ji: Detailed Guide To The Enforcement Directorate That Arrests Delhi CM Arvind Kejriwal

Every person in India is covered under FEMA and PMLA, which gives the ED the authority to initiate legal action.

Reported by: Pritam Saha
Detailed Guide To The Enforcement Directorate (ED) That Arrests Delhi Chief Minister Arvind Kejriwal | Image:X
Advertisement

Chief Minister of Delhi Arvind Kejriwal was taken into custody by the Enforcement Directorate (ED) on Thursday in connection with a money laundering case involving an alleged liquor policy scam. Explore the content below to gain thorough knowledge about the duties, authority, tenure, and power of ED.   

Date Of Formation 

Under the Department of Economic Affairs, the Enforcement Directorate was first established on May 1, 1956, as an 'Enforcement Unit'. This unit later changed its name to 'Enforcement Directorate' in 1957. Administrative control transferred to the Department of Revenue in 1960. Investigations into money laundering offenses and breaches of foreign exchange regulations are the responsibility of this multidisciplinary organization.

Functions

It is an agency, not a statutory organization, within the Ministry of Finance, Department of Revenue. It enforces laws, such as: 

  1. Conservation Of Foreign Exchange and Prevention Of Smuggling Activities Act, 1974 (COFEPOSA) - empowered to sponsor cases of Preventive Detention Foriegn Exchange Management Act, 1999 (FEMA).
  2. Prevention of Money Laundering Act, 2002 (PMLA)
  3. Fugitive Economic Offenders Act, 2018 (FEOA) 

PMLA Functions

Caries out search and seizure under section 16 and 17 of PMLA. It decides on arrest under Section 19 of PMLA. It can also directly carry out search and seizure under Section 50 of PMLA. 

Advertisement

FEMA Functions

In India, the Foreign Exchange Management Authority (FEMA) aims to control foreign exchange transactions in a way that upholds market stability, encourages economic expansion, guarantees adherence to legal requirements, and discourages illegal activity.

Advertisement

Jurisdiction

Every person in India is covered under FEMA and PMLA, which gives the ED the authority to initiate legal action. A civil court handles FEMA cases, a criminal court handles PMLA cases. For investigations, ED needs a complaint to be filed with another agency or the police. It cannot take action on its own. 

Advertisement

Structure

With its central office located in Delhi and five regional offices located in Mumbai, Chennai, Chandigarh, Kolkata, and Delhi, it is led by the Director of Enforcement. Each of its 10 zonal offices is led by a deputy director. 11 Assistant Directors oversee the sub-zonal offices. 

Advertisement

Recruitment And Tenure

The ED comprises officers from the IRS, IPS and IAS. The Central Vigilance Commissioner chairs a committee that includes Vigilance Commissioners, the Home Secretary, the Department of Personnel and Training (DOPT) Secretary, and the Revenue Secretary. The committee's proposal is used by the central government to choose the ED Director. Directors may serve for a maximum of five years, with a two-year term option. 

Advertisement

Published March 22nd, 2024 at 16:02 IST