Directorate of Enforcement
Rajat Dixit
Origin
● 1956- Established as Enforcement Unit.
○ Administrative Control- Department of Economic Affairs.
○ Purpose- handling Exchange Control Laws violations under FERA 1947.
○ Head of Unit- Legal Service Officer, as Director of Enforcement, assisted by an
Officer drawn on deputation from RBI, besides 03 Inspectors of Special Police
Establishment.
○ Branches- Delhi (HQ), Bombay and Calcutta.
● 1957- Unit was renamed as ‘Enforcement Directorate’
○ Branch opened at Madras.
● 1960- The administrative control- Department of Revenue.
● 1974- FERA 1947 was repealed and replaced by FERA 1974.
● 1974 to 1977- Administrative control- Department of Personnel & Administrative
Reforms.
● 2000- Foreign Exchange Management Act, 2000 (FEMA) came into operation.
● 2002- Prevention of Money Laundering Act, 2002 (PMLA) was enacted, and entrusted
for its enforcement to the Directorate, w.e.f. 01.07.2005.
Offices
● Headquarter- New Delhi
○ Organizational head- Director of Enforcement.
● Regional Office- Mumbai, Chennai, Chandigarh, Kolkata and Delhi
○ Organizational head- Special Directors of Enforcement.
● Zonal Offices- Ahmedabad, Bangalore, Chandigarh, Chennai, Kochi, Delhi, Panaji,
Guwahati, Hyderabad, Jaipur, Jalandhar, Kolkata, Lucknow, Mumbai, Patna and
Srinagar.
○ Organizational head- Joint Director.
● Sub-Zonal Offices- Bhubaneshwar, Kozhikode, Indore, Madurai, Nagpur, Allahabad,
Raipur, Dehradun, Ranchi, Surat, Shimla, Vishakhapatnam and Jammu.
○ Organizational head- Deputy Director.
Organizational Structure
Functions
● To collect, develop and disseminate intelligence relating to violations of FEMA,
2000, the intelligence inputs are received from various sources such as Central and
State Intelligence agencies, complaints etc.
● To investigate suspected violations of the provisions of the FEMA, 2000 relating to
activities such as “hawala” foreign exchange racketeering, non-realization of export
proceeds, non-repatriation of foreign exchange and other forms of violations under
FEMA, 2000.
● To adjudicate cases of violations of the erstwhile FERA, 1974 and FEMA, 2000.
● To realize penalties imposed on conclusion of adjudication proceedings.
● To handle adjudication, appeals and prosecution cases under the erstwhile FERA,
1974.
● To process and recommend cases for preventive detention under the Conservation
of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA)
● To undertake survey, search, seizure, arrest, prosecution action etc. against
offender of PMLA offence.
● To provide and seek mutual legal assistance to/from contracting states in respect of
attachment/confiscation of proceeds of crime as well as in respect of transfer of
accused persons under PMLA.
● Sponsor cases of preventive detention under Conservation of Foreign Exchange
and Prevention of Smuggling Activities Act, 1974(COFEPOSA) in regard to
contraventions of FEMA.
● Render cooperation to foreign countries in matters relating to money laundering
and restitution of assets under the provisions of PMLA and to seek cooperation in
such matters.
Directorate of Enforcement
(Chapter VI- S. 36)
● CG to establish a Directorate of Enforcement (ED) with a Director and such other
officers or class of officers as it thinks fit, who shall be called officers of Enforcement.
● CG may authorise the Director of Enforcement or an Additional Director of Enforcement
or a Special Director of Enforcement or a Deputy Director of Enforcement to appoint
officers of Enforcement below the rank of an Assistant Director of Enforcement.
● Subject to such conditions and limitations as CG may impose, an officer of
Enforcement may exercise the powers and discharge the duties conferred or imposed
on him under this Act.
Power of Search, seizure, etc. (S. 37)
● Director and other officers of Enforcement, not below the rank of an Assistant Director,
shall take up for investigation the contravention.
● CG may also authorise any officer or class of officers in CG, SG or RBI, not below the
rank of an Under Secretary to GOI to investigate any contravention.
● The officers to exercise the like powers which are conferred on income tax authorities
under the Income Tax Act, 1961 and shall exercise such powers, subject to such
limitations laid down under Income Tax Act.
Contravention- Section 13
Special Provisions relating to assets held
outside India in contravention of S. 4 (S.
37-A)
● If Authorised Officer by CG has reason to believe that any foreign exchange, foreign
security, or any immovable property, situated outside India, is suspected to have been
held in contravention of section 4, he may after recording the reasons in writing, by an
order, seize value equivalent, situated within India, of such foreign exchange, foreign
security or immovable property:
○ Proviso: no such seizure shall be made in case where the aggregate value of
such foreign exchange, foreign security or any immovable property, situated
outside India, is less than the value as may be prescribed.
● Order of seizure along with relevant material shall be placed before the Competent
Authority ( appointed by CG), who shall be an officer not below the rank of Joint
Secretary to GOI by Authorised Officer within 30 from the date of seizure.
● Competent Authority shall dispose of petition within 180 days from date of seizure by
either confirming or by setting aside such order, after giving an opportunity of being
heard to representatives of ED and aggrieved person.
○ Explanation: While computing 180 days, the period of stay granted by court shall
be excluded and a further period of at least 30 days shall be granted from the
date of communication of vacation of such stay order.
● Order of Competent Authority confirming seizure of equivalent asset shall continue till
the disposal of adjudication proceedings and thereafter, Adjudicating Authority shall
pass appropriate directions in the adjudication order with regard to further action.
○ Proviso: if at any stage of the proceedings, aggrieved person discloses the fact of
such foreign exchange, foreign security or immovable property and brings back
the same into India, then Competent Authority or Adjudicating Authority on receipt
of such application, and after affording an opportunity of being heard to the
aggrieved person and representatives of ED, shall pass an appropriate order,
including setting aside of the seizure.
● Any person aggrieved by any order passed by the Competent Authority may prefer an
appeal to the Appellate Tribunal.
Empowering other Officers (S. 38)
● CG may authorise any officer of customs or any central excise officer or any police
officer or any other officer of CG or SG to exercise such of the powers and discharge
such of the duties of the Director of Enforcement or any other officer of .
● Such officers shall exercise the like powers which are conferred on the income tax
authorities under the Income Tax Act, 1961, subject to such conditions and limitations
as CG may impose.
