Question map
Which one of the following is not correct in respect of Directorate of Enforcement ?
Explanation
The Directorate of Enforcement (ED) is a specialized financial investigation agency operating under the Department of Revenue, Ministry of Finance [3]. Its primary mandate is the enforcement of three specific laws: the Foreign Exchange Management Act, 1999 (FEMA), which is a civil law [2]; the Prevention of Money Laundering Act, 2002 (PMLA), which is a criminal law [3]; and the Fugitive Economic Offenders Act, 2018 [3]. While the ED investigates money laundering, the Prohibition of Benami Property Transactions Act, 1988, is primarily administered by the Income Tax Department under the Central Board of Direct Taxes (CBDT), not the ED. Although the ED may coordinate with other agencies regarding benami properties during money laundering probes, it is not the designated authority for enforcing the Benami Act. Therefore, option 4 is the incorrect statement regarding the ED's statutory functions.
Sources
- [1] https://dor.gov.in/sites/default/files/inline-documents/HQ.pdf
- [3] https://en.wikipedia.org/wiki/Enforcement_Directorate
- [2] https://enforcementdirectorate.gov.in/what-we-do