Let us see under whose instruction ED can take action – in other words Who can instruct Indian Enforcement Directorate to take action on an individual?
The Indian Enforcement Directorate (ED) operates under the Ministry of Finance and has the authority to investigate and enforce laws related to money laundering and foreign exchange violations. The initiation of an investigation or action by the ED typically follows certain protocols and legal procedures. Here are the primary ways in which the ED can be instructed to take action against an individual:
- Judicial Direction: Courts can direct the ED to investigate specific cases. For example, if a court, such as the Supreme Court or a High Court, receives a petition or observes a potential violation of laws within the ED’s jurisdiction, it can instruct the agency to take appropriate action.
- Government Referrals: The central government, particularly the Ministry of Finance, can refer cases to the ED. This usually happens when there is evidence of serious financial crimes or violations that fall under the purview of the ED.
- Complaints and FIRs: Law enforcement agencies, like the police or the Central Bureau of Investigation (CBI), may refer cases to the ED if they uncover evidence of money laundering or foreign exchange violations during their investigations. These referrals are often based on the filing of First Information Reports (FIRs) or other formal complaints.
- Reports from Financial Institutions: Banks and other financial institutions are required to report suspicious transactions to the Financial Intelligence Unit (FIU-IND). If the FIU-IND identifies potential money laundering activities or foreign exchange violations, it can forward these reports to the ED for further investigation.
- Internal Investigations: The ED can also initiate action based on its own intelligence and investigations. This might involve analyzing financial records, monitoring transactions, and other proactive measures to identify potential violations.
Once a directive or referral is received through any of these channels, the ED follows due process, which includes gathering evidence, conducting searches and seizures if necessary, and potentially arresting individuals involved in the violations.
SC CALLED CBI CAGED PARROTS :
Supreme Court judge denounced the elite Central Bureau of Investigation (CBI) as a “caged parrot” and “its master’s voice”.
Justice R.M. Lodha loudly berated the attorney-general, the government’s top lawyer, for what he said was clear evidence of interference in a CBI inquiry into alleged irregularities in the allocation of coalfield licences to private companies, a case dubbed “Coalgate” by the media.
There are loud accusations that the ruling party at Centre NOW uses ED for its political agenda: For example this is one case they quote:
The Enforcement Directorate on Monday, May 30, 2021 arrested Delhi health minister Satyendar Jain in a five-year-old money laundering case which had arisen out of a First Information Report filed by the Central Bureau of Investigation in August 2017.
Jain and others were accused of possessing of “disproportionate assets.”
TIMING AND POLITICAL GAIN TO RULING PARTY : His arrest has come at a time when Jain – as the AAP’s in charge of the poll-bound Himachal Pradesh – has been busy with the party’s organisational and political affairs.
Though the ED had questioned the Shakur Basti MLA of Aam Aadmi Party in 2018 in connection with this case, for the next three (3) years there was little progress in it.
Earlier this year, Delhi chief minister Arvind Kejriwal had said he has been “informed by sources that the ED may arrest Jain just before assembly elections in Punjab.”
“From our sources we have got to know that right before Punjab polls in the coming few days the ED is going to arrest Satyendar Jain. They are most welcome. Previously too, the Union government had conducted raids at Satyendar Jain but got nothing,” Kejriwal had said in a virtual press conference in the national capital.
Jain too had brushed aside the matter, saying: “They are welcome to come whenever they want. Even before this, they have raided me twice but all has been in vain. This is all politics and they did it during the last Punjab elections also. ED, CBI all are welcome. I am ready, if they want to arrest me, they can arrest me.”
AAP eventually won in the Punjab elections.
In April, the agency said that assets worth Rs 4.81 crore belonging to Jain’s family and companies “beneficially owned and controlled” by him were provisionally attached as part of a money laundering probe against him.
In a statement, the ED had then stated that it has issued a provisional order under the Prevention of Money Laundering Act (PMLA) for the attachment of the assets.
Mr.Manish Sisodia, Deputy CM of Delhi linked the development to the upcoming polls in Himachal Pradesh and wrote: “A fake case is being run against Satyendra Jain for 8 years. Till now ED has been called many times. In between, ED stopped calling for many years as they did not get anything. Now they have started again because Satyendra Jain is the election in-charge of Himachal. BJP is losing badly in Himachal. That is why Satyendra Jain has been arrested today so that he cannot go to Himachal. They will be released in a few days as the case is completely fake.”
COMING BACK TO LIQUOR SCAM: Lt.Governor Mr.V.K.Saxena recommended on 22nd July 2022 a CBI Investigation on the Delhi (Excise) Liquor Policy Scam. Mr.Arvind Kejriwal’s Deputy Sisodia was arrested on 26 February 2023 in relation to the Excise Scam by CBI. The FIR said that Sisodia, former Delhi Excise Commissioner Arava Gopi Krishna, and two other senior excise department officials were “instrumental in recommending and taking decisions pertaining to excise policy for the year 2021-22 without the approval of competent authority with an intention to extend undue favours to the licensee post tender”. .
Another Arrest when Election is happening: Until now there was no mention of Mr.Arvind Kejriwal in Liquor case by any agencies .The Election Commission of India (ECI) on March 16 announced general elections to the 18th Lok Sabha. On March 21st Kejriwal was arrested in case tied to the excise policy scam.