Source-This post on ED can summon ‘any person’ for ‘any information’- SC in sand mining case is based on the article “Sand mining case: ED can summon ‘any person’ for ‘any information’, Supreme Court tells Tamil Nadu” published in “The Hindu” on 2nd April 2024.
Why in the News?
The Supreme Court, in a recent hearing on a sand mining case, endorsed the Enforcement Directorate’s (ED) authority to summon “anyone for any information.”
What is Enforcement Directorate (ED)?
| Aspect | Details |
| About | It is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance. |
| Headquarters | New Delhi |
| Origin | 1. On 1 May 1956, an ‘Enforcement Unit’ was formed, in the Department of Economic Affairs, for handling Exchange Control Laws violations under Foreign Exchange Regulation Act, 1947. 2. In the year 1957, this Unit was renamed as ‘Enforcement Directorate’. |
| Mandate | It has been given the task of enforcing the provisions of two special fiscal laws- a. Foreign Exchange Management Act, 1999 (FEMA). b. The Prevention of Money Laundering Act, 2002 (PMLA). |
What are the key powers and functions of Enforcement Directorate?
1. Probing financial crimes– The ED has the authority to probe and enforce regulations concerning money laundering, breaches of foreign exchange regulations, and similar economic infractions.
2. Freezing and Seizing Assets– The ED is authorized to freeze and confiscate assets believed to be connected to money laundering or illicit operations.
3. Properties Attachment– The Directorate has the authority to seize properties implicated in or derived from money laundering activities, thus halting their disposal during the investigation. This attachment directive lasts for 180 days and may be prolonged by the Adjudicating Authority.
4. Issuing Summons– Section 50(2) of the PMLA allows the ED to summon any individual deemed necessary to provide evidence or produce records during an investigation or proceeding under the statute. Section 50(3) mandates that the summoned person must attend in person or through authorized agents, providing truthful statements and required documents.
5. Arrests– The agency can arrest individuals engaged in money laundering or foreign exchange violations, as per the law’s provisions. Arrests may be made with or without a warrant, depending on the case’s circumstances.
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