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Q3 (IAS/2025) Polity & Governance › Governance, Policies & Social Justice › Regulatory and statutory bodies Answer Verified

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?

Result
Your answer:  ·  Correct: A
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. [1] https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/may/doc202551549501.pdf
  2. [2] https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/may/doc202551549501.pdf
  3. [3] https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/may/doc202551549501.pdf
  4. [4] https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/may/doc202551549501.pdf
  5. [5] https://cag.gov.in/uploads/download_audit_report/2014/Union_Compliance_In_Direct_Tax_Customs_Revenue_Dept_8_2015_chapter_5.pdf
  6. [6] https://cag.gov.in/uploads/download_audit_report/2014/Union_Compliance_In_Direct_Tax_Customs_Revenue_Dept_8_2015_chapter_5.pdf
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Q. With reference to the Government of India, consider the following information : I. Directorate of Enforcement Enforcement of the Fugitiv…
At a glance
Origin: Mostly Current Affairs Fairness: Low / Borderline fairness Books / CA: 0/10 · 5/10
Statement 1
Government of India: Is the Directorate of Enforcement responsible for enforcing the Fugitive Economic Offenders Act, 2018?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"Being the executing agency for Prevention of Money Laundering Act 2002 and the Fugitive Economic Offenders Act, 2018 (FEOA), ED has over the past years coordinated with MHA and MEA to request the extradition of the accused in several cases."
Why this source?
  • 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.
Web source
Presence: 5/5
"With the enactment of the Fugitive Economic Offenders Act (FEOA), 2018, ED was further empowered to act against high-value economic offenders who flee the country to evade prosecution."
Why this source?
  • 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.
Web source
Presence: 5/5
"The Fugitive Economic Offenders Act, 2018 also empowers ED to attach and confiscate proceeds of crime and properties associated with economic offenders in the event of such offenders absconding to foreign jurisdictions."
Why this source?
  • 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.

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
Strength: 4/5
“It was made mandatory for every real estate project to be registered with its state's RERA. Unfortunately, this law required to be enforced by state governments. The Fugitive Economic Offenders Act (FEOA) which came into force in April 2018, was required to tackle the large fraud cases reported by banks. Under the law, if an economic offender flees the country to avoid due process, he/she can be declared a 'fugitive economic offender' and their properties can be confiscated and auctioned to recover at least part of the debt. The government adopted the Hydrocarbon Exploration and Licensing Policy (HELP) in 2016 with the major guiding principles of enhancing domestic oil and gas production; bringing substantial investment; generating sizable employment; enhancing transparency; and reducing administrative discretion.”
Why relevant

Mentions the Fugitive Economic Offenders Act (FEOA) 2018 and its purpose (confiscation/recovery of property) without naming an enforcing agency.

How to extend

A student could consult the FEOA text or official notifications to see which agency is legally empowered to declare and pursue fugitive economic offenders.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 65: Central Bureau of Investigation > ESTABLISHMENT > p. 503
Strength: 4/5
“On the other hand, the CBI investigates crimes of corruption, economic offenses and serious and organized crime other than terrorism. It must be noted here that the provisions of the Delhi Special Police Establishment Act (1946) do not enable the CBI to exercise its powers and jurisdiction in any area in a State (not being a railway area) without the consent of the Government of that State. In other words, the jurisdiction of the CBI can be extended to the States only with the consent of the State Government concerned.”
Why relevant

States that the CBI investigates 'economic offenses' and serious organized crime, suggesting that economic offences are typically within remit of central enforcement agencies.

How to extend

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).

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 65: Central Bureau of Investigation > FUNCTIONS > p. 505
Strength: 3/5
“It normally confines its activities in the anti-corruption field to offences committed by the employees of the Central Government and Union Territories and their public sector undertakings. It takes up investigation of conventional crimes like murder, kidnapping, rape etc. The CBI acts as the "National Central Bureau" of Interpol in India. The Interpol Wing of the CBI coordinates requests for investigation-related activities originating from Indian law enforcement agencies and the member countries of the Interpol.”
Why relevant

Explains CBI's role in anti‑corruption and economic crime, showing that central statutory agencies are commonly tasked with investigating economic offences.

How to extend

Compare the statutory mandate of agencies described here with the enforcement provisions of FEOA to see which agency's statutory functions align.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 12: Transport, Communications and Trade > Directorate General of Civil Aviation > p. 30
Strength: 4/5
“The Directorate General of Civil Aviation (DGCA) is an attached office of the Ministry of Civil Aviation and is headed by Director General (Civil Aviation). The headquarters is located in New Delhi and there are regional and sub-regional offices all over the country. DGCA is primarily responsible for regulation of air transport services to/from/within India and for enforcement of civil air regulations, air safety and airworthiness standards.”
Why relevant

Describes a 'Directorate' (DGCA) as an attached office of a Ministry that is 'primarily responsible for regulation... and enforcement of' sector-specific regulations.

How to extend

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.

Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 27: Environmental Organizations > 27.4. WTLDLIFE CRTME CONTROL BUREAU (WCCB) > p. 383
Strength: 3/5
“o The Government of India constituted a statutory body, the Wildlife Crime Control Bureau on 6th June 1980 by amending the Wildlife (Protection) Act, 1972. The bureau would complement the efforts of the state governments, primary enforcers of the Wildlife (Protection) Act, 1972 and other enforcement agencies of the country. All Rights Reserved. No part of this material may be reproduced in any form or by any means, without permission in writing.”
Why relevant

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.

How to extend

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).

Statement 2
Government of India: Does the Directorate of Enforcement operate under Internal Security Division‑I in the Ministry of Home Affairs?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"By 1960, the Directorate came under the Department of Revenue, where it continues to operate today"
Why this source?
  • 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.
Web source
Presence: 5/5
"After a short period under the Dept of Personnel and Administrative Reforms from 1973-77, ED again became part of DoR"
Why this source?
  • 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.
Web source
Presence: 5/5
"a proposal for Cadre Restructuring of ED has been submitted to the Ministry of Finance through Department of Revenue which is under consideration."
Why this source?
  • 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.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 67: National Investigation Agency > ESTABLISHMENT > p. 513
Strength: 4/5
“The NIA is headed by a Director-General. He/she is appointed by the central government. His/her powers are similar to the powers exercisable by a Director-General of Police in respect of the police force in a state. The NIA works under the administrative control of the Ministry of Home Affairs, Government of India. The state government extends all assistance and cooperation to the NIA for investigation of the offences specified under the NIA Act.”
Why relevant

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.

How to extend

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.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 65: Central Bureau of Investigation > ESTABLISHMENT > p. 503
Strength: 4/5
“t ESTABLISHMENT The Central Bureau of Investigation (CSI) traces its origin to the Special Police Establishment which was set up in 1941 by the Government of India. The functions of the Special Police Establishment then were to investigate cases of bribery and corruption in transactions with the War and Supply Department of India during World War II. The superintendence of the Special Police Establishment was vested with this War and Supply Department. The CBI was established in 1963 by a resolution of the Ministry of Home Affairs, Government of India. The Delhi Special Police Establishment was also merged with the CBI and was made one of the divisions of the CBI.”
Why relevant

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.

How to extend

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.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 65: Central Bureau of Investigation > COMPOSITION > p. 504
Strength: 3/5
“r COMPOSITION The CB I is headed by a Director. He/she is assisted by special directors and additional directors. Additionally, it has a number of joint directors, deputy inspector-Generals, superintendents of police and all other usual ranks of police personnel as well as forensic scientists and law officers. The Director of the Central Bureau of Investigation (CBI) as Inspector-General of Police, Delhi Special Police Establishment, is responsible for the administration of the organisation. With the enactment of the CVC Act, 2003, the superintendence of the Delhi Special Police Establishment vests with the Central Government save investigations of offences under the Prevention of Corruption Act, 1988, in which, the superintendence vests with the Central Vigilance Commission.”
Why relevant

Description of CBI’s composition and superintendence under central authorities again exemplifies the recurring rule: investigative organisations may be under central ministries (including MHA).

How to extend

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.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 74: Public Services > All-India Services > p. 546
Strength: 3/5
“They are: • IAS by the Ministry of Personnel, Public Grievances and Pensions • IPS by the Ministry of Home Affairs • IFoS by the Ministry of Environment, Forest and Climate Change It must be mentioned here that the AII-India Services are controlled jointly by the Central and state governments. The ultimate control lies with the Central Government while the immediate control vests with the state governments. Their salaries and pensions are met by the states. However, the disciplinary action (imposition of penalties) against these officers can only be taken by the Central government. Presently, there are twenty-six state cadres in all for the All-India Services.”
Why relevant

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.

How to extend

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.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 41: Union Territories > ADVISORY COMMITTEES OF UNION TERRITORIES > p. 412
Strength: 5/5
“Under the Government of India (Allocation of Business) Rules 1961, Ministry of Home Affairs is the nodal ministry for all matters of Union Territories relating to legislation, finance and budget, services and appointment of Lt. Governors and Administrators. All the five un-wit legislature (Andaman and Nicobar Islands, Chandigarh , Dadra and Nagar Haveli and Daman and Diu, Lakshadweep and Ladakh) have the forum.”
Why relevant

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.

How to extend

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.

Statement 3
Government of India: Does the Directorate of Revenue Intelligence enforce the provisions of the Customs Act, 1962?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"The Directorate of Revenue Intelligence (DRI) was constituted on 4 December 1957 and exercises all the powers specified in Section 100, 101, 103, 104, 106, 107 and 110 of the Customs Act, 1962."
Why this source?
  • 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.
Web source
Presence: 5/5
"Enforcing compliance under the **Customs Act, 1962**, and allied laws"
Why this source?
  • 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.
Web source
Presence: 4/5
"The customs act 1962 vests significant powers in customs officers for enforcement. Authorities such as the Central Board of Indirect Taxes and Customs (CBIC) and the Directorate of Revenue Intelligence (DRI) play a critical role in implementing customs regulations, conducting investigations, seizing goods, and prosecuting offenders."
Why this source?
  • 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.

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
Strength: 4/5
“• Basic Customs Duty: It is charged on goods imported to India. It is imposed under Customs Act, 1962. The rates of basic customs duty vary from 5 per cent to 40 per cent from product to product. • Surcharge on Customs Duty: It is basically tax on tax. A social welfare surcharge of 10 per cent is levied on aggregate duties of customs on import of goods. • Customs Cess: It is again tax on tax and is levied for a specific purpose. Customs cess is 3 per cent on aggregate of customs duty.”
Why relevant

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.

How to extend

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.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > OTHER INDIRECT TAXES NOT REPLACED BY GST > p. 96
Strength: 3/5
“the provisions of the State Stamp Act and Indian Stamp Act, 1899. Such documents include all agreements, bonds, powers of attorney, and others. It differs from state to state. Example - When a person buys a property, he or she has to pay stamp duty along with registration fees. • State Excise Duty - Excise duty is an indirect tax levied on excisable goods which are manufactured in India and are meant for home consumption. It is a tax on manufacturing, which is paid by the manufacturer, who passes its incidence to the customers. Majority of excise duties were levied by Central Government, and they have been subsumed into GST.”
Why relevant

Discusses other indirect taxes and central excise/customs matters, showing customs-related taxation is administered at the central level.

How to extend

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.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 15: Centre-State Relations > II Distribution of Tax Revenues > p. 153
Strength: 3/5
“Accordingly, the Amendment conferred concurrent taxing powers upon the Parliament and the State Legislatures to make laws for levying GST on every transaction of supply of goods or services or both. Duties) Act, 1955, (iv) Service Tax, (v) Additional Customs Duty commonly known as Countervailing Duty, (vi) Special Additional Duty of Customs, and (vii) Central Surcharges and Cesses so far as they related to the supply of goods and services After the above two amendments (Le. , 80th Amendment and 101 st Amendment), the present position with respect to the distribution of tax revenues between the centre and the states is as follows: A.”
Why relevant

Explains that customs duties are part of central taxation/finance domain, implying enforcement responsibility lies with central government agencies.

How to extend

One could extend this by checking central government organizational charts or statutory schedules to identify the specific central agency tasked with customs law enforcement.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 67: National Investigation Agency > 514 Midlan Polity > p. 514
Strength: 5/5
“agencies and law enforcement units both at central and state governments level. In more detail, the functions assigned to the NIA are as follows<sup>2</sup>: (a) To investigate and prosecute offences in respect of the Acts specified in the Schedule of the NIA Act. (b) To provide assistance to, and seek assistance from, other intelligence and investigation agencies of the central government and state governments. (c) To take other such measures which may be necessary for speedy and effective implementation of the provisions of the NIA Act.”
Why relevant

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.

How to extend

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).

Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 27: Environmental Organizations > Functions > p. 384
Strength: 3/5
“• (i) Collection, coliarion of intelligence and its dissemination and establishment of a centralized Wildlife Crime data bank; • (ii) Co-ordination of actions by various enforcement authorities towards the implementation of the provisions of this Act”
Why relevant

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.

How to extend

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).

Statement 4
Government of India: Does the Directorate of Revenue Intelligence function under the Department of Revenue, Ministry of Finance?
Origin: Weak / unclear Fairness: Borderline / guessy
Indirect textbook clues
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.15 Previous Years Questions > p. 187
Strength: 5/5
“With reference to the Union Government, consider the following statements: [2015] • (i) The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament• (ii) No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India• (iii) All the disbursements made from Public Account also need the authorization from the Parliament of India• Which of the statements given above is/are correct?• (a) (i) & (ii) only• (b) (ii) & (iii) only• (c) (ii) only• (d) (i), (ii) & (iii)”
Why relevant

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.

How to extend

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.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > Central Sector Schemes and Centrally Sponsored Schemes > p. 185
Strength: 4/5
“Public Finance (Central) Division under Department of Expenditure, Ministry of Finance in consultation with the Budget Division, Department of Economic Affairs, Ministry of Finance communicates the outlays for both Central Sector Schemes (CSs) and Centrally Sponsored Schemes (CSSs) over a Finance Commission cycle. The Public Finance (Central) Division is also responsible for preparation of outcome budgets for all Central Ministries/Departments in consultation with the NITI Aayog. This output-outcome framework (outcome budget) is for all CSSs and CSs dealing with identified measurable outcomes in the relevant mediumterm framework and physical and financial outputs are targeted on a year-to-year basis. Under Centrally Sponsored Schemes (CSSs), a certain percentage of the funding is borne by the States in the ratio such as 50:50, 70:30, 75:25 or 90:10.”
Why relevant

Shows that the Ministry of Finance contains multiple named departments (e.g., Department of Expenditure, Department of Economic Affairs) that handle specific functions.

How to extend

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.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 74: Public Services > Central Services > p. 546
Strength: 4/5
“The personnel of Central Services work under the exclusive jurisdiction of the Central Government. They manage specialized (functional and technical) positions in various departments of the Central Government. Most of them are controlled and managed by their respective ministries/departments, while a few of them are controlled and managed by the Ministry of Personnel. It (Ministry of Personnel) also determines the general policies pertaining to all the Central Services. In fact, the Ministry of Personnel is the central personnel agency in the Government of India. Before independence, the Central Services were classified into Class I, Class II, Subordinate and Inferior services.”
Why relevant

Explains that most Central Services and specialized technical positions are controlled and managed by their respective ministries/departments.

How to extend

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.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.4 Budget Classification > p. 151
Strength: 3/5
“The article 112 specifies that the budget must distinguish the expenditures on revenue account from other expenditures (capital account). Therefore, the budget comprises of the Revenue Budget and Capital Budget. Revenue Receipts: Those receipts of the government which neither creates a liability for the government nor reduces the assets (physical or financial) of the government are called revenue receipts. Revenue receipts are non-redeemable i.e., they cannot be reclaimed from the government. Revenue receipts can be of two types. • Tax Revenues consists of direct and indirect taxes of the central government.• Non-Tax Revenue consists of interest receipts on account of loans given by central government, dividend and profits on investments made by the central government (i.e., PSUs), fees and fines and other receipts for services rendered by the government like passport fees etc.”
Why relevant

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.

How to extend

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.

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?
Origin: Weak / unclear Fairness: Borderline / guessy
Indirect textbook clues
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > Project Insight > p. 119
Strength: 5/5
“• It is a project launched by the Union Finance Ministry in 2016 to monitor high-value transactions and detect tax evaders using technology with a view to curb the circulation of black money. • It uses data mining and big data analytics to scoop out tax evaders from social media platforms to deduce mismatches between spending patterns and income declaration.”
Why relevant

Describes a 2016 Union Finance Ministry project that uses data mining and big‑data analytics to monitor high‑value transactions and detect tax evaders.

How to extend

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.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.13 Direct Tax Reforms > p. 180
Strength: 4/5
“There are around 7.5 crore direct taxpayers. They pay tax and file return (tax document). Taxpayers use various ways to avoid paying taxes and showing their income way below the actual income. So, government has set certain parameters to pick for assessment/review of these cases. For example, those tax payers whose income is quite high (say 30 lakhs) but tax payment is very less supposing only 2 lakhs or suppose in any particular savings account more than Rs. 10 lakhs got deposited in a financial year etc. Now suppose there are 5 lakh such cases, out of which Govt. may pick randomly 50,000 cases for review/assessment (as all cannot be reviewed because of resource constraint).”
Why relevant

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.

How to extend

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.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > 2020 > p. 247
Strength: 3/5
“What was the purpose of Inter-Creditor Agreement signed by Indian Banks and Financial Institutions recently? • (a) To lessen the Government of India's perennial burden of fiscal deficit and current account deficit. • (b) To support the infrastructure projects of Central and State Governments. • (c) To act as independent regulator in case of applications for loans of \overline{50} crore or more The Reserve Bank of India's recent directives relating to 'Storage of Payment System Data', popularly known as data diktat, command the payment system providers that: • They shall ensure that entire data relating to payment systems operated by them are stored in a system only in India. • They shall endure that the systems are owned and operated by Public Sector Enterprises. • They shall submit the consolidated system audit report to the Comptroller and Auditor General of India by the end of the calendar year.”
Why relevant

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.

How to extend

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.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > Direct Tax Code (DTC) Bill, 2010 > p. 89
Strength: 3/5
“The DTC is an attempt by the Government of India to simplify the law relating to the direct taxes. The 2010 Bill seeks to replace IT Act, 1961 and Wealth Tax Act, 1957 and is yet to be implemented. The main proposals of the Bill are: • (a) It proposes a flat tax rate of 30 per cent on business income of companies. • (b) It widens the tax slabs for individuals with fresh slabs. (Minimum exemption limit - ₹52 lakh). • (c) It removes several tax deductions currently allowed for companies. • (d) As per the recommendations, General Anti-Avoidance Rule (GAAR) was introduced in 2014 to allow the authorities to classify any arrangements entered into for evading taxes.”
Why relevant

Mentions introduction of GAAR to classify arrangements for evading taxes, showing institutional emphasis on technical/administrative measures to detect evasion.

How to extend

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.

Understanding Economic Development. Class X . NCERT(Revised ed 2025) > Chapter 1: DEVELOPMENT > Sources for Information > p. 17
Strength: 2/5
“NSO is an organisation under the Ministry of Statistics and Programme Implementation, Government of India. The website you can log onto is: http:/mospi.gov.in. Employment data is also available from other sources such as Census of India.”
Why relevant

Identifies NSO as a government statistical organisation under MOSPI, illustrating that specific agencies manage and publish official data.

How to extend

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.

Statement 6
Government of India: Does the Directorate General of Systems and Data Management operate under the Department of Revenue, Ministry of Finance?
Origin: Weak / unclear Fairness: Borderline / guessy
Indirect textbook clues
Indian Polity, M. Laxmikanth(7th ed.) > Chapter 74: Public Services > Central Services > p. 546
Strength: 4/5
“The personnel of Central Services work under the exclusive jurisdiction of the Central Government. They manage specialized (functional and technical) positions in various departments of the Central Government. Most of them are controlled and managed by their respective ministries/departments, while a few of them are controlled and managed by the Ministry of Personnel. It (Ministry of Personnel) also determines the general policies pertaining to all the Central Services. In fact, the Ministry of Personnel is the central personnel agency in the Government of India. Before independence, the Central Services were classified into Class I, Class II, Subordinate and Inferior services.”
Why relevant

States that central services and specialized positions are generally controlled and managed by their respective ministries/departments.

How to extend

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).

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 1: National Income > 1.4 Indian Economy > p. 4
Strength: 4/5
“However, in 2019, Central Government merged the CSO and the NSSO and established National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI). National Statistical Office (NSO) - under the Ministry of Statistics and Programme Implementation (MoSPI). Created through the merger of the NSSO and CSO in 2019. • Rangarajan Commission envisaged NSO to implement and maintain statistical standards and coordinate statistical activities of Central and State agencies as laid down by the National Statistical Commission (NSC). There will be three Director Generals: DG (Statistics), DG (Coordination, Administration and \bullet Policy) and DG (National Sample Survey) - reporting to the Secretary (S&PI).”
Why relevant

Gives an example (NSO) of a central statistical organisation created and placed under a specific ministry (MoSPI) with Director Generals reporting to the Secretary.

How to extend

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.

Understanding Economic Development. Class X . NCERT(Revised ed 2025) > Chapter 1: DEVELOPMENT > Sources for Information > p. 17
Strength: 4/5
“NSO is an organisation under the Ministry of Statistics and Programme Implementation, Government of India. The website you can log onto is: http:/mospi.gov.in. Employment data is also available from other sources such as Census of India.”
Why relevant

Explicitly notes that NSO is an organisation under a named ministry (MoSPI) and provides the ministry website as source.

How to extend

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).

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > 2020 > p. 247
Strength: 3/5
“What was the purpose of Inter-Creditor Agreement signed by Indian Banks and Financial Institutions recently? • (a) To lessen the Government of India's perennial burden of fiscal deficit and current account deficit. • (b) To support the infrastructure projects of Central and State Governments. • (c) To act as independent regulator in case of applications for loans of \overline{50} crore or more The Reserve Bank of India's recent directives relating to 'Storage of Payment System Data', popularly known as data diktat, command the payment system providers that: • They shall ensure that entire data relating to payment systems operated by them are stored in a system only in India. • They shall endure that the systems are owned and operated by Public Sector Enterprises. • They shall submit the consolidated system audit report to the Comptroller and Auditor General of India by the end of the calendar year.”
Why relevant

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.

How to extend

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).

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.1 Introduction > p. 146
Strength: 3/5
“Budget is an estimate of income and expenditure for a future period of time. The estimated receipts and expenditure of the government of India in respect of each financial year is called the budget of GoI. Article 265 of the Constitution provides that no tax shall be levied or collected except by authority of law. And as per Article 266 no expenditure can be incurred except with the authorization of the legislature. Government takes the approval of the parliament for the taxes/receipts through the Finance Bill and the approval for the expenditures through the Appropriation Bill. Budget is prepared by the Budget Division, Department of Economic Affairs, Ministry of Finance.”
Why relevant

Shows that key financial administration functions (budget preparation) are allocated to specific divisions within the Ministry of Finance (Budget Division, Department of Economic Affairs).

How to extend

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.

Pattern takeaway: UPSC consistently tests the 'Allocation of Business Rules' by swapping the parent ministry of closely related agencies (e.g., confusing CBI's role under DoPT with MHA, or ED's role under MoF with MHA).
How you should have studied
  1. [THE VERDICT]: Trap (Ministry Swap). Row I is the key; ED falls under Ministry of Finance, not Home Affairs.
  2. [THE CONCEPTUAL TRIGGER]: Institutional Framework for Economic Offences vs. Internal Security (GS-3 Linkage).
  3. [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).
  4. [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.
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 Central vs State enforcement responsibilities
💡 The insight

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.

📚 Reading List :
  • 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
🔗 Anchor: "Government of India: Is the Directorate of Enforcement responsible for enforcing..."
📌 Adjacent topic to master
S1
👉 Domain-specific mandates of central enforcement agencies
💡 The insight

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.

📚 Reading List :
  • 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
🔗 Anchor: "Government of India: Is the Directorate of Enforcement responsible for enforcing..."
📌 Adjacent topic to master
S1
👉 Fugitive Economic Offenders Act — purpose and remedies
💡 The insight

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.

📚 Reading List :
  • 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
🔗 Anchor: "Government of India: Is the Directorate of Enforcement responsible for enforcing..."
📌 Adjacent topic to master
S2
👉 Administrative control of central investigative agencies by the Ministry of Home Affairs
💡 The insight

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.

📚 Reading List :
  • 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
🔗 Anchor: "Government of India: Does the Directorate of Enforcement operate under Internal ..."
📌 Adjacent topic to master
S2
👉 Ministry of Home Affairs as nodal ministry for Union Territories and internal security matters
💡 The insight

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.

📚 Reading List :
  • 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
🔗 Anchor: "Government of India: Does the Directorate of Enforcement operate under Internal ..."
📌 Adjacent topic to master
S2
👉 Placement and control of the Indian Police Service (IPS) under MHA
💡 The insight

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.

📚 Reading List :
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 74: Public Services > All-India Services > p. 546
🔗 Anchor: "Government of India: Does the Directorate of Enforcement operate under Internal ..."
📌 Adjacent topic to master
S3
👉 Customs Act, 1962 and Basic Customs Duty
💡 The insight

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.

📚 Reading List :
  • 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
🔗 Anchor: "Government of India: Does the Directorate of Revenue Intelligence enforce the pr..."
🌑 The Hidden Trap

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.

⚡ Elimination Cheat Code

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 Connection

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.

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SIMILAR QUESTIONS

IAS · 2023 · Q92 Relevance score: -0.58

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?

IAS · 2020 · Q71 Relevance score: -0.97

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 ?

IAS · 2024 · Q9 Relevance score: -1.45

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 ?

IAS · 2003 · Q58 Relevance score: -1.68

Which one of the following statements is correct with reference to FEMA in India?