ED Recorded 5,422 Cases under PMLA & 30,716 Cases under FEMA; Attached Crime Proceeds Worth Rs1.05 Lakh Crore: Govt

Moneylife Digital Team 25 July 2022

Economy & Nation

The enforcement directorate (ED) has taken up around 24,893 cases for investigation under the provisions of the Foreign Exchange Management Act, 1999 (FEMA) and has recorded around 3,985 cases under the Prevention of Money Laundering Act 2002 (PMLA) over the past 10 years, the Union government informed the Lok Sabha.

In a written reply, Pankaj Chaudhary, minister of state for finance, says, "Till 31 March 2022, the ED recorded around 5,422 cases under PMLA. "It is pertinent to mention here that, after recording of a case under PMLA, necessary action as per provisions of PMLA is taken which resulted in attachment of proceeds of crime to the tune of Rs1,04,702 crore, filing of prosecution complaint in 992 cases resulting in the confiscation of Rs869.31 crore and conviction of 23 accused persons under PMLA."

Data shared by the government shows that up to fiscal year (FY) 2019, the ED had recorded around 200 cases every year. However, it jumped to nearly three times to 562 cases in FY19-20 from 195 cases in FY18-19. It increased to 981 cases the following year and 1,180 cases in FY21-22, the information provided in the lower house shows.

"Till 31 March 2022, the ED has taken up around 30,716 cases for investigation under FEMA. It is pertinent to mention here that after taking up a case for investigation under FEMA, necessary action as per provisions of FEMA is taken which resulted in issuance of 8,109 show cause notices (SCNs). Further, 6,472 SCNs were adjudicated under FEMA, thereby imposing penalty of around Rs8,130 crore. Further, assets to the tune of Rs7,080 crore have been seized under FEMA," the minister says.

Rajiv Ranjan Singh alias Lalan Singh, a member of Parliament (MP), has asked about number of cases registered under ED over the past 10 years and number of cases that are under inquiry as well as results of ED action.

ED is an investigation agency which is mandated with the task of enforcing provisions of FEMA, PMLA and Fugitive Economic Offenders Act, 2018 (FEOA). "The role of the Directorate comes in to picture as and when any contravention under FEMA and occurrence of scheduled offence disclosing the generation of proceeds of crime (PoC) as defined under section 2(1)(u) of PMLA is noticed by the Directorate or a warrant of arrest issued by the magistrate or court after taking cognizance of any scheduled offence appended to FEOA and where the amount involved is Rs100 crore or above, provided the accused has gone outside India," the minister says.

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