Chief Minister of Delhi Arvind Kejriwal was taken into custody late on March 21st. A Chief Minister has never before been arrested while serving in their position. The Enforcement Directorate, or ED, is the name of the investigating body that carries out this type of work.
The reckless acts of ED have garnered media attention in the past few years. These days, this investigative body is thought to be more potent than the NIA and CBI. Nonetheless, the opposition comprises 85% of the leaders that ED has apprehended.
A tiny team grew into the nation's most potent investigative organization.
After independence, there was a need to look into individuals who were transacting on foreign stock exchanges. Since the nation's independence, the Foreign Exchange Regulation Act, or FERA 1947, has been in place to address this.
Jawaharlal Nehru was the leader of the nation's government in 1956. The Department of Economic Affairs suggested setting up a distinct division during this period. This unit was called the Enforcement Unit. 1957 marked the debut of this unit, one year later. A Legal Service officer was appointed as its head, and its office was established in Delhi. He oversaw this unit as its director.
Following this, this director's assistant was promoted to another RBI officer. Additionally, three inspector level police officers were part of this unit. Since there used to be stock exchanges in Bombay, Madras, and Calcutta, three Enforcement Unit branches were also established in these three cities. Following this, the organization's name was changed from Enforcement Unit to Enforcement Directorate, or ED.
The Department of Economic Affairs lost administrative authority over ED in 1960 when it was moved to the Revenue Department. The 'Foreign Exchange Regulation Act' of 1947 was eventually repealed and replaced by the new Foreign Exchange Regulation Act of 1973. In other words, FERA 1947 was replaced by FERA 1973. ED began operating under the new legislation. Administrative responsibility over ED was held by the Department of Personnel and Administrative Reforms from 1973 to 1977.
ED handled cases involving numerous well-known, prominent individuals. For instance, in cases involving Vijay Mallya, TTV Dhinakaran, Hema Malini, Maharani Gayatri Devi, Jayalalitha, Orkey Group, the competitor of Reliance, and BCCL Chairman Ashok Jain, the ED looked into claims of breaking the FERA rule.
FERA gave the ED the authority to enter a person's office without a warrant and make an arrest. Furthermore, ED was charged with third-degree torture. The majority of industrialists' dread of ED persisted into the 1990s.
FERA was canceled in 2000 because it was too onerous. Foreign exchange-related felonies were changed to civil offenses under the FEMA Act, which took its place. As a result, the ED was no longer able to make arrests and hold individuals.
Atal Bihari Vajpayee was the central government's leader in 2002. The Prevention of Money Laundering Act, or PMLA, was introduced in the Parliament during this time. The Congress-led UPA coalition government came into power in 2004. The Minister of Finance was P Chidambaram.
The PMLA law, which was created during the Atal government, was put into effect by the UPA government on July 1, 2005. The PMLA (Amendment) Act was then introduced in 2012 by the UPA government itself, broadening the range of offenses covered by it.
These included obtaining and using money for illegal purposes, as well as hiding it. This amendment granted ED more privileges. For instance, ED is able to combat political scams because to the PMLA.
The 'Fugitive Economic Offenders Act' (FEOA) was passed by the BJP-led NDA government in 2018 in response to the rise in economic offenders seeking asylum overseas. ED was also tasked with carrying out this law's requirements.
The case is sent to ED when?
The police notify the ED of each case involving wrongful earnings of at least Rs 1 crore that is reported to them. In addition, the ED may request a copy of the police station's charge sheet or FIR on its own if any such case is brought to its attention on its own. Following this, the ED investigates if money laundering is involved.
Compared to CBI and NIA, ED is more powerful.
Recall that 2020 tale. when eight states in a row forbade the CBI from entering their borders without authorization. Among them were states like Mizoram, Kerala, Chhattisgarh, Maharashtra, West Bengal, Punjab, and Rajasthan.
It is evident that the CBI, which was established by the Delhi Police Special Establishment Act of 1946, needs state government approval before it can operate in any state. Yes, the CBI is able to go anyplace as long as the inquiry is being carried out under a court's directives. can make arrests and question as well. The Department of Justice must also grant authority for the CBI to prosecute officers in situations of corruption.
In a similar vein, the NIA Act 2008 grants the National Investigating Agency, or NIA, legal authority. Although NIA is able to operate across the nation, its purview is restricted to terrorist-related matters.
In contrast to these two, only the Economic Department (ED) is a central government investigative body authorized to call in or bring charges against public servants and politicians in cases involving money laundering. ED has the authority to raid and seize assets. However, a residence or hotel that is in operation cannot have its premises abandoned.
Bail is extremely difficult to get for an ED-arrested person under the Money Laundering Act. The statement made to the investigating officer is treated as evidence by the court under this statute, but it is not considered evidence under other laws.
148 well-known figures have fallen victim to ED in the past 18 years; opposition leaders make up 85% of those affected.
Indian Express stated in one of its reports from 2022 that the ED had looked at 147 well-known politicians during the previous 18 years. Leaders of the opposition made up 85% of them.
Simultaneously, the use of ED against politicians has increased fourfold in the eight years of NDA administration following 2014. A total of 121 politicians, including 115 opposition leaders, were the subject of investigations during this time. This indicates that 95% of the opposition leaders were the targets of action during this time.
Under the UPA government, from 2004 to 2014, the ED looked at cases involving just 26 politicians. Among them were 14 opposition leaders, or around 54%.
The ED recorded over 6,000 cases, with 0.4% resulting in penalty.
Following inquiries from opposition parties, the ED made data regarding cases filed up until January 31, 2023, public. Since the PMLA law's inception, 5,906 cases have been registered as of January 31, 2023, according to ED. Just 176 instances, or 2.98% of the total, were filed against MLAs, former MLAs, MLCs, MPs, and former MPs.
Of these, 513 persons have been taken into custody and 1,142 chargesheets have been submitted. Of these, 25 cases have had their trials concluded. In twenty-four of the cases, the accused have been found guilty; in one, they were found not guilty. In these 24 cases, 45 defendants have been found guilty in accordance with the Money Laundering Act, according to ED.
