Enforcement Directorate (ED)

  • It is economic intelligence and law enforcement agency responsible for enforcing economic laws and fighting economic crime in India.
  • It functions under aegis of Department of Revenue, Union Ministry of Finance.
  • Its prime objective is enforcement of two key Acts of Government of India namely:
    • Foreign Exchange Management Act 1999 (FEMA) and
    • Prevention of Money Laundering Act 2002 (PMLA)
to check money laundering by curb black money and hawala trade cases.
  • It is composed of officers from the Indian Revenue Service, Indian Police Service and the Indian Administrative Service.
  • It was established in 1956 as ‘Enforcement Unit’ in Department of Economic Affairs.
  • It is headquartered in New Delhi.
  • The tenure of ED director has been extended from two years to five years now.  The change in tenure of the ED Director was done by amending the Central Vigilance Commission Act, 2003. The ED director can be appointed first for a period of two years. But if needed, the tenure can be extended for three more years. This will require three separate annual extensions. However, no extension can be granted to an ED chief after a period of five years.

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