Q. Consider the following statements regarding Enforcement Directorate (ED)
1.It is a specialized financial investigation agency under the Department of Revenue
2.It is mandated with the task of enforcing the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) only Which of the above statements is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A
Notes:

The Supreme Court recently stated that the investigation agencies (CBI, ED) should not keep the “sword hanging” over the accused and there must be time-bound completion of investigations.

About Enforcement Directorate

  • Directorate of Enforcement is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance, Government of India.
  • On 1 May 1956, an ‘Enforcement Unit’ was formed, in the Department of Economic Affairs, for handling Exchange Control Laws violations under Foreign Exchange Regulation Act, 1947.
  • In the year 1957, this Unit was renamed as ‘Enforcement Directorate’.
  • It is mandated with the task of enforcing the provisions of two special fiscal laws
    • Foreign Exchange Management Act, 1999 (FEMA)
    • The Prevention of Money Laundering Act, 2002 (PMLA).

Read more: CBI, ED can’t keep sword hanging over accused: Supreme Court