ENFORCEMENT DIRECTORATE (Syllabus: GS Paper 2 – Polity)

Context:The Directorate of Enforcement told a special court that former Chief Minister Hemant Soren allegedly had several incriminating chats on WhatsApp with a close aide about transfer postings, exchanged confidential information about several properties, and shared government records .

Enforcement Directorate (Ed)

• About: The Directorate of Enforcement is a multi-disciplinary organization mandated with investigation of offence of money laundering and violations of foreign exchange laws.
• Origin:
• The origins of this Directorate can be traced back to May 1, 1956, when the Department of Economic Affairs established an ‘Enforcement Unit' to handle Exchange Control Laws violations under the Foreign Exchange Regulation Act (FERA), 1947.
• Nodal minister: Department of Revenue of the Ministry of Finance.
• Appointment of ED director:

oThe ED director is appointed as per provisions of the Central Vigilance Commission Act, 2003.

oThe Centre appoints the director on recommendation of a committee, with the Central Vigilance Commissioner as chairperson.

o Other committee members are secretaries in the Finance (Revenue), Home and Personnel & Training ministries.

• Tenure: The Director holds a fixed tenure of 2 years, with the possibility of a maximum of 3 annual extensions.