ED conducted 112 raids from 2004-14, over 3,000 in 8 years after that: Centre
The ED carried out 3,010 raids and attached proceeds of crime worth ₹99,356 crore under Prevention of Money Laundering Act over the last eight years, since the Prime Minister Narendra Modi led NDA government came to power.
The Enforcement Directorate (ED) carried out 3,010 raids and attached proceeds of crime worth ₹99,356 crore under Prevention of Money Laundering Act (PMLA) over the last eight years, since the Prime Minister Narendra Modi led National Democratic Alliance (NDA) government came to power, as compared to only 112 raids and the attachment of ₹5,346 crore proceeds of crime between 2004-05 and 2013-14, the tenure of the United Progressive Alliance (UPA), the finance ministry told Parliament on Tuesday.
Similarly, while only 8,586 investigations were taken up for violation of Foreign Exchange Management Act (FEMA) by the federal agency between 2004-05 and 2013-14, this number rose to 22,320 FEMA cases over the following eight years.
The details were shared by union minister of state for finance Pankaj Chaudhary in Rajya Sabha on Tuesday while responding to a question by Congress member of parliament Priyanka Chaturvedi.
“During the first nine years of administration of PMLA, a small number of searches (112) were carried out which resulted in attachment of proceeds of crime of ₹5346.16 crore and filing of 104 prosecution complaints (charge sheets),” Chaudhary said. During this period, not a single accused was convicted by any court across the country for money laundering, he said, adding that no property was also confiscated.
In contrast, 3010 searches were conducted during the last eight years which resulted in attachment of proceeds of crime of ₹99,356 crore (approx.), filing of prosecution complaints (charge sheets) in 888 cases and conviction of 23 accused persons/entities and confiscation of proceeds of crime worth ₹869.31 crore, Chaudhary added.
As on March 31 this year, ED has filed charge sheets in 992 PMLA cases, he added. .
The central agency has registered 3,555 PMLA cases since April 1, 2014 till March end this year out of total 5,422 cases registered till date, Chaudhary said. Trial is going on in 931 cases which are at different stages.
Asserting that searches in the course of investigation of money laundering cases are very important from perspective of collection of evidence, Chaudhary said : “Increase in number of searches show government’s commitment to prevent money laundering and improved systems for gathering financial intelligence through use of technology, better interagency cooperation and exchange of information both domestically and internationally, concerted efforts to complete pending investigations in old cases and investigations in complex money laundering cases that have multiple accused requiring multiple searches are some of the reasons for increase in number of searches.”
PMLA was enacted in 2002 and implemented on July 1, 2005.
Responding to Chaturvedi’s question regarding FEMA cases through a written reply, the junior finance minister said that between 2004-05 and 2013-14 (when UPA was in power), 571 searches were conducted and 8,586 cases were taken up for investigation under provisions of FEMA which resulted in issuance of SCNs (show cause notices) in 2,780 cases and adjudication of 1,312 SCNs, thereby imposing penalty of ₹1,754.33 crores.” Subsequently, assets worth only ₹14 crore (approx.) were seized under FEMA during that period.
Talking about ED’s achievement in dealing with foreign exchange violations, he said “In order to dispose of pending investigation in old cases and to complete investigation in new cases in time bound manner under the FEMA, 996 searches were conducted and 22,330 cases were taken up for investigations which resulted in issuance of SCNs in 5,329 cases and adjudication of 5,160 SCNs thereby imposing penalty of ₹6,376.51 crores.” Assets worth ₹7,066 crore (approx.) were seized under FEMA during last eight years, he added.
FEMA was enacted in 1999 after repealing the Foreign Exchange Regulation Act (FERA) of 1973.