Question map
With reference to the Government of India, consider the following information : I. Directorate of Enforcement Enforcement of the Fugitive Economic Offenders Act, 2018 It works under Internal Security Division-I, Ministry of Home Affairs II. Directorate of Revenue Intelligence Enforces the Provisions of the Customs Act, 1962 It works under Department of Revenue, Ministry of Finance III. Directorate General of Systems and Data Management Carrying out big data analytics to assist tax officers for better policy and nabbing tax evaders It works under Department of Revenue, Ministry of Finance In how many of the above rows is the information correctly matched?
Explanation
The Directorate of Enforcement (ED) is indeed the executing agency for the Fugitive Economic Offenders Act, 2018 (FEOA)[2], making the first part of Row I correct. However, ED operates under the Department of Revenue[4], not under Internal Security Division-I, Ministry of Home Affairs. Therefore, **Row I is incorrect overall**.
The Directorate of Revenue Intelligence (DRI) was constituted on 4 December 1957 and exercises powers specified under various sections of the Customs Act, 1962[5], confirming it enforces the Customs Act. DRI operates under CBEC (now CBIC)[6], which is part of the Department of Revenue, Ministry of Finance. Therefore, **Row II is completely correct**.
Regarding Row III, the documents provided do not contain any information about the Directorate General of Systems and Data Management, its functions, or its organizational placement. Without documentary evidence, this row cannot be verified as correct.
Since only Row II is correctly matched in all aspects, the answer is **only one**.
Sources- [1] https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/may/doc202551549501.pdf
- [2] https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/may/doc202551549501.pdf
- [3] https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/may/doc202551549501.pdf
- [4] https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/may/doc202551549501.pdf
- [5] https://cag.gov.in/uploads/download_audit_report/2014/Union_Compliance_In_Direct_Tax_Customs_Revenue_Dept_8_2015_chapter_5.pdf
- [6] https://cag.gov.in/uploads/download_audit_report/2014/Union_Compliance_In_Direct_Tax_Customs_Revenue_Dept_8_2015_chapter_5.pdf
PROVENANCE & STUDY PATTERN
Full viewThis is a classic 'Ministry Swap' trap disguised as a difficult factual question. While Row III is niche, Row I is the gatekeeper: ED is the most visible agency in current affairs, and knowing it reports to the Department of Revenue (Finance), not MHA, is non-negotiable. The question rewards organizational clarity over rote memorization of acts.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: Government of India: Is the Directorate of Enforcement responsible for enforcing the Fugitive Economic Offenders Act, 2018?
- Statement 2: Government of India: Does the Directorate of Enforcement operate under Internal Security Division‑I in the Ministry of Home Affairs?
- Statement 3: Government of India: Does the Directorate of Revenue Intelligence enforce the provisions of the Customs Act, 1962?
- Statement 4: Government of India: Does the Directorate of Revenue Intelligence function under the Department of Revenue, Ministry of Finance?
- Statement 5: Government of India: Does the Directorate General of Systems and Data Management carry out big‑data analytics to assist tax officers in policy formulation and detecting tax evaders?
- Statement 6: Government of India: Does the Directorate General of Systems and Data Management operate under the Department of Revenue, Ministry of Finance?
- Explicitly names ED as the executing agency for the Fugitive Economic Offenders Act, 2018.
- Links ED's role to international coordination (extradition) in FEOA cases, showing operational responsibility.
- States that with enactment of FEOA, ED was further empowered to act against offenders who flee the country.
- Presents ED's empowerment under FEOA as part of its core enforcement functions.
- Describes a specific power under FEOA vested in ED — the ability to attach and confiscate proceeds and properties of fugitive economic offenders.
- Shows substantive enforcement authority given to ED by the Act.
Mentions the Fugitive Economic Offenders Act (FEOA) 2018 and its purpose (confiscation/recovery of property) without naming an enforcing agency.
A student could consult the FEOA text or official notifications to see which agency is legally empowered to declare and pursue fugitive economic offenders.
States that the CBI investigates 'economic offenses' and serious organized crime, suggesting that economic offences are typically within remit of central enforcement agencies.
Use this pattern to check whether FEOA enforcement is assigned to a central economic/criminal investigation agency like CBI or another central agency (e.g., Directorate of Enforcement).
Explains CBI's role in anti‑corruption and economic crime, showing that central statutory agencies are commonly tasked with investigating economic offences.
Compare the statutory mandate of agencies described here with the enforcement provisions of FEOA to see which agency's statutory functions align.
Describes a 'Directorate' (DGCA) as an attached office of a Ministry that is 'primarily responsible for regulation... and enforcement of' sector-specific regulations.
Apply this general rule: if FEOA designates a 'Directorate' attached to a ministry, check which ministry and whether that directorate is empowered to enforce the Act.
Gives an example of a statutory bureau (WCCB) created to 'complement the efforts' of state enforcers and other agencies, illustrating that Parliament creates specialised enforcement bodies for particular laws.
Use this pattern to look for any statutory creation or notification under FEOA that sets up or assigns enforcement to a specialised agency (which could be the Directorate of Enforcement).
- Explicitly states the Directorate came under the Department of Revenue and continues to operate there.
- Department of Revenue is part of the Ministry of Finance, indicating ED is under Finance, not Home Affairs.
- Confirms ED returned to and remained part of the Department of Revenue (DoR) after a brief period elsewhere.
- Reinforces administrative control by DoR rather than any unit in the Ministry of Home Affairs.
- Describes administrative actions (cadre restructuring) being taken via the Ministry of Finance through the Department of Revenue.
- Shows active administrative linkage of ED with the Ministry of Finance/Department of Revenue.
This snippet shows that some central investigation agencies (NIA) work under the administrative control of the Ministry of Home Affairs, illustrating a pattern where certain investigative bodies are placed within MHA.
A student could use this pattern to check MHA’s official organizational chart or Allocation of Business rules to see whether Enforcement-related bodies are listed under an MHA division.
The CBI’s establishment and administrative link to the Ministry of Home Affairs demonstrates that major central investigative agencies can be created/placed under MHA.
One could compare how agencies like CBI are allocated within ministries and then look up where the Directorate of Enforcement is allocated in similar official allocations.
Description of CBI’s composition and superintendence under central authorities again exemplifies the recurring rule: investigative organisations may be under central ministries (including MHA).
Use this as a model to search ministry-level divisions and superintendence entries (e.g., in Annual Reports or Allocation of Business) to locate the Directorate of Enforcement.
This snippet shows the Ministry of Home Affairs is the controlling ministry for IPS and internal security personnel — indicating MHA’s role in internal security administration.
From this, a student could examine whether bodies concerned with internal security or enforcement are typically grouped under MHA divisions such as Internal Security Division‑I.
The Allocation of Business Rules 1961 are cited as assigning nodal roles to MHA for certain functions, highlighting that formal allocation rules determine which ministry houses particular functions/agencies.
A student could consult the Government of India (Allocation of Business) Rules or the MHA’s Division-wise allocation to verify whether the Directorate of Enforcement appears under Internal Security Division‑I.
- Explicitly states DRI was constituted to exercise powers under specific sections of the Customs Act, 1962.
- Describes DRI's investigative and intelligence roles (collecting, analysing, disseminating intelligence) that support enforcement actions.
- Defines the DRI as India’s premier intelligence and enforcement agency for customs-related offenses.
- Specifically lists 'Enforcing compliance under the Customs Act, 1962' among DRI's key functions.
- States the Customs Act vests significant enforcement powers in customs officers and names DRI among authorities responsible.
- Specifies DRI's roles: implementing customs regulations, conducting investigations, seizing goods, and prosecuting offenders — all enforcement activities under the Act.
States that Basic Customs Duty is imposed under the Customs Act, 1962, establishing that the Act is the statutory source for customs regulation and duties.
A student could use this to infer that a central enforcement body would exist to implement a major central statute like the Customs Act and then check which agency is assigned that role.
Discusses other indirect taxes and central excise/customs matters, showing customs-related taxation is administered at the central level.
A student might combine this with knowledge that central taxes are enforced by central authorities and then look up which central agency handles customs enforcement.
Explains that customs duties are part of central taxation/finance domain, implying enforcement responsibility lies with central government agencies.
One could extend this by checking central government organizational charts or statutory schedules to identify the specific central agency tasked with customs law enforcement.
Describes a pattern where a central investigation agency (NIA) is explicitly empowered to investigate and prosecute offences under Acts listed in its schedule — illustrating the common model of central agencies being given statutory enforcement powers for specified laws.
Using this pattern, a student could look for a similar statutory or administrative instrument that lists the Customs Act among laws entrusted to a particular central enforcement agency (e.g., DRI).
Notes that enforcement authorities coordinate actions towards implementation of the provisions of an Act, showing that Acts are implemented via designated enforcement agencies and coordination mechanisms.
A student can apply this general rule to the Customs Act by searching for which enforcement authority coordinates and enforces customs provisions (suggesting an identifiable agency like DRI might fulfill that role).
This snippet explicitly mentions the 'Department of Revenue' in the context of Union Government functions (preparation of Union Budget), showing the Department of Revenue is a distinct, named department within central financial administration.
A student could use this to justify checking an official Ministry of Finance departmental list (or organogram) to see which agencies report to the Department of Revenue, to test whether DRI is among them.
Shows that the Ministry of Finance contains multiple named departments (e.g., Department of Expenditure, Department of Economic Affairs) that handle specific functions.
From this pattern a student can infer the Ministry of Finance is organized into specialized departments and therefore look for a Department of Revenue as the likely parent for revenue-related agencies like DRI.
Explains that most Central Services and specialized technical positions are controlled and managed by their respective ministries/departments.
A student could use this rule to expect an enforcement/technical body dealing with customs/revenue (like DRI) to be administered by the relevant ministry/department (e.g., Department of Revenue), then verify via an official organizational chart.
Discusses revenue receipts and the budget framework, underscoring the functional domain ('revenue') which is typically handled by a revenue-focused department within the Ministry of Finance.
A student can combine this with the knowledge that agencies dealing with revenue enforcement normally fall under the ministry/department responsible for revenue administration, and hence look for DRI under Department of Revenue.
Describes a 2016 Union Finance Ministry project that uses data mining and big‑data analytics to monitor high‑value transactions and detect tax evaders.
A student could use this to infer that the Finance Ministry commissions analytics work and then check whether DG Systems & Data Management is the unit implementing such projects for the tax department.
Explains that the government sets objective parameters to pick large numbers of cases for review/assessment (e.g., mismatches between income and deposits), implying the need for systematic data screening.
One could infer analytics tools are required to apply these parameters at scale and therefore look for which agency/unit (e.g., DGSDM) provides that capability for tax officials.
Notes regulatory attention to where payment‑system data are stored and audited, indicating the existence of large centralized data holdings and formal data‑management requirements.
A student could reason that a central data‑management directorate would be involved in handling/analyzing such data and then check DGSDM’s mandate or published work on analytics.
Mentions introduction of GAAR to classify arrangements for evading taxes, showing institutional emphasis on technical/administrative measures to detect evasion.
One could combine this with evidence of analytics projects (snippet 1) to hypothesize that specialized systems/data units support enforcement, and then verify whether DGSDM is that unit.
Identifies NSO as a government statistical organisation under MOSPI, illustrating that specific agencies manage and publish official data.
This pattern (dedicated agencies for data/statistics) supports the plausibility that a Directorate General exists for systems and data management — prompting a check of DGSDM’s charter or activities regarding analytics for tax authorities.
States that central services and specialized positions are generally controlled and managed by their respective ministries/departments.
A student could use this rule to infer that a Directorate General (a specialized body) would normally be placed under the specific ministry/department responsible for its functional domain (check if DGS&DM's function aligns with Dept. of Revenue).
Gives an example (NSO) of a central statistical organisation created and placed under a specific ministry (MoSPI) with Director Generals reporting to the Secretary.
Compare organisational precedent: if NSO (a data/statistics body) is under MoSPI, ask whether a systems/data management directorate would be placed under Revenue or a different ministry based on its remit.
Explicitly notes that NSO is an organisation under a named ministry (MoSPI) and provides the ministry website as source.
Use this pattern to look up whether DGS&DM is similarly listed on the Department of Revenue or Ministry of Finance website (basic web check).
Describes regulatory directives about data storage and auditing responsibilities for payment system providers, showing that data governance is handled via specific regulatory and administrative channels.
A student can use this to reason that data/system management roles may be distributed across agencies (RBI, ministries); so verify whether DGS&DM's remit overlaps Revenue (tax/data) or lies elsewhere (e.g., finance sector regulators).
Shows that key financial administration functions (budget preparation) are allocated to specific divisions within the Ministry of Finance (Budget Division, Department of Economic Affairs).
Use this to note that Ministry of Finance houses multiple departments with distinct roles (DEA, Revenue); check whether systems/data management functions are assigned to the Department of Revenue or to another department within the Ministry of Finance.
- [THE VERDICT]: Trap (Ministry Swap). Row I is the key; ED falls under Ministry of Finance, not Home Affairs.
- [THE CONCEPTUAL TRIGGER]: Institutional Framework for Economic Offences vs. Internal Security (GS-3 Linkage).
- [THE HORIZONTAL EXPANSION]: Map the 'Parents': CBI → DoPT (Ministry of Personnel); NIA → MHA; ED → Dept of Revenue (MoF); SFIO → Ministry of Corporate Affairs; NCB → MHA; DRI → Dept of Revenue (MoF).
- [THE STRATEGIC METACOGNITION]: Apply the 'Functional Alignment' logic. If an agency enforces 'Economic' acts (PMLA, FEOA, FEMA), its parent is almost certainly the Ministry of Finance. If it enforces 'Terror/Order' acts (UAPA), it is MHA.
Central agencies often complement state governments and some central investigative powers in states are subject to state consent or limits.
High-yield for federalism and public administration questions: helps determine which level of government enforces a law and the practical limits on central agencies. Connects enforcement institutions to constitutional distribution of powers and jurisdictional constraints, enabling answers about agency authority and inter-governmental coordination.
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 27: Environmental Organizations > 27.4. WTLDLIFE CRTME CONTROL BUREAU (WCCB) > p. 383
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 65: Central Bureau of Investigation > ESTABLISHMENT > p. 503
Different central bodies (CBI, DGCA, WCCB) have clearly defined subject-matter mandates for investigation or regulatory enforcement.
Essential for questions that ask 'which agency enforces/ investigates X': it trains you to map laws and sectors to the correct enforcing body, linking administrative structure, sectoral regulation, and criminal vs regulatory enforcement approaches.
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 65: Central Bureau of Investigation > FUNCTIONS > p. 505
- Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 12: Transport, Communications and Trade > Directorate General of Civil Aviation > p. 30
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 27: Environmental Organizations > 27.4. WTLDLIFE CRTME CONTROL BUREAU (WCCB) > p. 383
The Act targets economic offenders who flee the country and provides for declaring them fugitive economic offenders and confiscating/ auctioning properties to recover debt.
High-yield for contemporary law and economy topics: useful for questions on banking fraud, recovery mechanisms, and recent legislation. Connects criminal/asset-forfeiture measures with financial sector governance and policy responses to large frauds.
- Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 39: After Nehru... > Disbanding Planning Commission and Setting up NITI Aayog > p. 783
The National Investigation Agency and the Central Bureau of Investigation are described as being under the administrative/establishment control of the Ministry of Home Affairs.
High-yield for questions on institutional placement and control of investigatory bodies; helps answer which ministry supervises various central agencies and distinguishes administrative control from legal/judicial oversight. Connects to questions on central-state relations in policing and to understanding which ministry handles internal security portfolios.
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 67: National Investigation Agency > ESTABLISHMENT > p. 513
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 65: Central Bureau of Investigation > ESTABLISHMENT > p. 503
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 65: Central Bureau of Investigation > COMPOSITION > p. 504
The Ministry of Home Affairs is designated the nodal ministry for Union Territories and is the central authority linked to internal security organisations.
Useful for UPSC questions about federal administrative responsibilities and the role of central ministries; clarifies why certain security and administrative agencies are housed under MHA and aids in answering institutional allocation and inter-ministerial jurisdiction questions.
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 41: Union Territories > ADVISORY COMMITTEES OF UNION TERRITORIES > p. 412
- Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 41: Union Territories > ADVISORY COMMITTEES OF UNION TERRITORIES > p. 412
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 67: National Investigation Agency > ESTABLISHMENT > p. 513
The Indian Police Service is explicitly listed as being under the Ministry of Home Affairs, illustrating central control over policing cadres.
Important for governance and public administration questions involving All-India Services; helps distinguish which services fall under which ministries and explains cadre control, disciplinary authority, and centre–state administrative linkages.
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 74: Public Services > All-India Services > p. 546
Basic Customs Duty is levied on imported goods and is imposed under the Customs Act, 1962.
High-yield for UPSC: understanding the legal basis of import taxation is essential for questions on trade policy, tariff structure and revenue. Connects to public finance, international trade and administrative law and helps identify which statutes govern import duties.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > OTHER INDIRECT TAXES NOT REPLACED BY GST > p. 95
Financial Intelligence Unit - India (FIU-IND). It is also under the Dept of Revenue (MoF) but, unlike ED, it is NOT an investigative agency. It only receives and analyzes Suspicious Transaction Reports (STRs) to disseminate to ED/CBI.
Use the 'Adjective Heuristic'. The Act in Row I is the Fugitive *Economic* Offenders Act. In the Government of India, 'Economic' administration is the turf of the Ministry of Finance. 'Internal Security' is the turf of MHA. An economic agency under an internal security division is a bureaucratic mismatch.
Mains GS-3 (Money Laundering): Understanding the split between 'Predicate Offence' (investigated by Police/CBI) and 'Proceeds of Crime' (investigated by ED) explains why multiple agencies exist for the same crime.
SIMILAR QUESTIONS
With reference to India, consider the following pairs : Action The Act under which it is covered 1. Unauthorized wearing of police or military uniforms : The Official Secrets Act, 1923 2. Knowingly misleading or otherwise interfering with a police officer or military officer when engaged in their duties : The Indian Evidence Act, 1872 3. Celebratory gunfire which can endanger the personal safety of others : The Arms (Amendment) Act, 2019 How many of the above pairs are correctly matched?
With reference to the history of India, consider the following pairs : 1. Aurang - In-charge of treasury of the State 2. Banian - Indian agent of the East India Company 3. Mirasidar - Designated revenue payer to the State Which of the pairs given above is/are correctly matched ?
Consider the following information : 1. Dhuandhar - Malwa - Narmada 2. Hundru - Chota Nagpur - Subarnarekha 3. Gersoppa - Western Ghats - Netravati In how many of the above rows is the given information correctly matched ?