The performance of the Enforcement Directorate (ED) has drastically improved during the Narendra Modi government’s tenure, as per the agency’s data. And this, despite the fact that the ED has half of its total sanctioned manpower.
At present, the ED functions under the Department of Revenue, Ministry of Finance, and is responsible for investigating economic offences under the PMLA (Prevention of Money Laundering Act, 2002), and the Foreign Exchange Management Act (FEMA), 1999.
The agency’s data speaks about the ED’s transformation and suggests that its performance under the current government has shown marked improvement, with prosecution compliance in cases registered under PMLA and FEMA having gone up sharply.
According to data provided by the ED, during 2012-13, in all, 212 cases were registered, out of which in only 11 cases, prosecution complaints were filed. After a change in government at the Centre, in 2017-18, in all 148 cases were filed, out of which 103 cases reached the prosecution stage.
ED data also suggests that from January 2005 to March 2012, the agency registered 1,434 cases, but prosecution complaints were filed in only 38 cases. Poor prosecution complaints resulted in zero prosecution rates in the ED.
The value of assets attached by the ED from 2005 to 2012 was Rs 1,214.66 crore. The value has gone up to Rs 7,432.04 crore in fiscal 2017-18.
Until 31 March this year alone, the ED had already attached property worth Rs 29,468.31 crore. Better functioning of the ED has made the lives of criminals involved in hawala and finance-related crimes, difficult, say experts.
The performance of the ED under FEMA’s mandate has also improved. As per the agency’s data, from January 2005 to March 2012, the ED initiated investigation in 5,823 cases, but issued show cause notices (SCNs) in only 1,560 cases. In 2017-18, the ED initiated investigation under FEMA in 3,627 cases, out of which the directorate completed the adjudication process in 868 cases.
The strength of staff members, however, is still low against the total sanctioned posts, but in the past couple of years, the ED has inducted a comparatively high number of staff.
In 2014, when the Modi government came to power at the Centre, the total number of staff was 691 against the sanctioned capacity 2,064. This number has now reached 1,005.
Initially tasked with enforcing PMLA and FEMA, the ED has now been given the responsibility of enforcing the Fugitives Economic Offenders law 2018, which gives the government powers to confiscate the property of fugitive economic offenders, both within and outside India. The ED can probe whether or not the property has been purchased from proceeds of crime. It also covers a wide array of white collar offences that can lead to an individual being classified as an economic offender.
The Modi government’s zeal to counter and curb black money in the country has led to the transformation of the ED, say experts.
The ED has been on the forefront of many high-profile investigations, including the recent Rs 12,636 crore fraud at the Punjab National Bank, allegedly involving jewellers Nirav Modi and Mehul Choksi. The agency has also been probing fugitive liquor baron Vijay Mallya in the Rs 9,000 crore Kingfisher Airlines scam in August 2017.
The ED’s crackdown is not limited to individuals from the field of business. Many political leaders, too, have been facing the brunt of the ED’s action.
Among the prominent cases, ED’s is probing Karti Chidambaram, son of former Finance Minister P. Chidambaram, in an ongoing PMLA case against him in the Aircel-Maxis deal. The agency has been probing the aspect of Foreign Investment Promotion Board (FIPB) approvals in the Aircel-Maxis foreign direct investment case, which were granted in 2006 when P. Chidambaram was Finance Minister.
Former Bihar Chief Minister Lalu Yadav is another political heavyweight who is facing an ED probe. The ED is also probing the former chairman of the Indian Premier League, Lalit Modi under FEMA, for having allegedly told selective bidders how much to bid in order to win during the first IPL team auction in 2008.