Enforcement Directorate Essay Example for Free

Enforcement directorate EssayEnforcement conductorate Pertains to the establishment of directorate of Enforcement and the powers to study the entrancement of any(prenominal) viands of spell, rule, regulation, notifications, directions or order issued in recital of the powers nether this Act. The conductor have been empowered to take up investigations. Enforcement Directorate The Directorate of Enforcement is mainly interested with the usement of the provisions of the FEMA to prevent leakage of hostile exchange which generally occurs by dint of the following malpractices. 2.Remittances of Indians abroad otherwise than through normal banking channels, i. e. through compensatory payments.3.Acquisition of foreign currency lawlessly by person in India. 4.Unauthorized precaution of accounts in foreign countries. 5.Illegal acquisition of foreign exchange through Hawala. 6.Secreting of commission abroad. Organizational Set-Up *The Enforcement directorate, with its HQs at r ude(a) Delhi has seven zonary offices at Bombay, Calcutta, Delhi, Ja addhar, Madras, Ahmedabad and Bangalore. The zonal offices atomic number 18 headed by the Dy. Directors * The Directorate has 9 bomber zonal offices at Agra,Srinagar, Jaipur, Varanasi, Trivendrum, Calicut, Hyderabad, Guwahati and Goa, which are headed by the Asstt.Directors.FEMA 1999 ENFORCEMENT DIRECTORATE Established by Central Govt to investigate due chemical bond to the provisions of the Act by market participants. Concerned with enforcement of the provisions of the Act to prevent leakage of foreign exchange occurring through various malpractices. Directorate of Enforcement is responsible for detection of cases relating to violation and performance of adjudicatory functions to suppress malpracticesFUNCTIONS To collect and coach intelligence relating to violation of provisions of FEMA. To conduct searches of suspected persons, conveyances and premises for seizing evoke materials. To enquire into and inves tigate suspected violations or provisions of FEMA. To adjudicate cases of violations of FEMA for levying penalties and also for confiscating the amounts convoluted in contraventions. To ensure penalties in departmental adjudication.The Parliament has enacted the Foreign Exchange Management Act,1999 to replace the Foreign Exchange regularisation Act, 1973. This Act came into force on the 1st day of June,2000. To investigate provisions of the Act, the Central Govt. have realized the Directorate of Enforcement with Director and other officers as officers of the Enforcement.ROLE OF ENFORCEMENT DIRECTORATEThe Directorate of Enforcement is mainly concerned with the enforcement of the provisions of the Foreign Exchange Management Act to prevent leakage of foreign exchange which generally occurs through the following malpractices 1) Remittances of Indians abroad otherwise than through normal banking channels, i.e. through compensatory payments. Acquisition of foreign currency illegally by person in India. Nonrepatriation of the proceeds of the exported goods. Unauthorised maintenance of accounts in foreign countries. Underinvoicing of exports and everywhereinvoicing of imports and any other type of invoice manipulation. Siphoning off of foreign exchange against fictitious and bogus imports land by Illegal acquisition of foreign exchange through Hawala. Secreting of commission abroad.2) 3) 4) 5)6) 7) 8)Directorate has to detect cases of violation and also perform substantial adjudicatory functions to curb such malpract ices.ORGANISATION SET-UPThe Enforcement Directorate, with its Headquarters at invigorated Delhi has seven zonal offices at Bombay, Calcutta, Delhi, Jalandhar, Madras, Ahmedabad and Bangalore. The zonal offices are headed by the Deputy Directors. The Directorate has nine subzonal offices at Agra, Srinagar, Jaipur, Varanasi, Trivandrum, Calicut, Hyderabad, Guwahati and Goa, which are headed by the Assistant Directors. The Directorate has also a Unit at Madurai, which is headed by a Chief Enforcement Officer. Besides, there are three Special Directors of Enforcement and one Additional Director of Enforcement,FUNCTIONS The main functions of the Directorate are as under The main functions of the Directorate are as under 1 2 3 4 5 6 7 8 9 To enforce Foreign Exchange Management Act 1999 and Prevention of money launder Act 2002. To collect and develop intelligence relating to violation of the provisions of Foreign Exchange Management Act and Prevention of money Laundering Act 2002. To conduct searches of suspected persons, conveyances and premises and seize incriminating materials (including Indian and foreign currencies multiform) To enquire into and investigate suspected violations of provisions of Foreign Exchange Management Act and Prevention of money Laundering Act 2002. To adjudicate cases of violations of Foreign Exchange Management Act penalties departmentally and also for confiscating the amounts involved in violations. T o realize the penalties imposed in departmental adjudication To attach and confiscate properties involved in the act of Money laundering. To keep back the person suspected to be involved in the act of money laundering. To prosecute the person involved in the act of money laundering.In addition to the preceding(prenominal) functions relating to the Foreign Exchange Management Act. Directorate also processes and recommends cases for detention of habitual offender under the Conservation of Foreign Exchange and Prevention of export Activities Act,1974 (COFEPOSA), which provides interalia for detention of a person with a intention of preventing him from acting in a manner negative to the conservation and augmentation of exchange. PROCEDURAL PROVISIONS For enforcing the provisions of various sections of FEMA,l999, the officers of Enforcement Directorate of the level of Assistant Director and above will have to undertake the following functions 1) 2) 3) 4) Collection and development of intelligence/information. Keeping surveillance over suspects. Searches of persons/vehicles as per provisions of Incometax Act,1961. Searches of premises as per provisions of Incometax Act,1961.5) Summoning of persons for giving narrate and producing of documents as per provisions of Incometax Act,l96l. Power to examine persons as perprovisions of Incometax Act,196l. Power to lcall for any information/document as per provisions of Incometax Act , 1961. Power to seize documents etc. as per provisions of Incometax Act,196l. Custody of documents as per Incometax Act,196l. Adjudication and good luck charms- Officers of and above the rank of Dy Director of Enforcement, are empowered to adjudicate cases of contravention of the provisions of the Act these proceedings which are quasijudicial in nature, start with the issuance of show cause notice in the event of cause tshown by the carte du journot being found satisfactory, farther proceedings are held, vis. personal hearing, in which th e noticee has a further right to present his defence, either in person or through any authorised interpretive program on conclusion of these proceedings, the adjudicating authority has to examine and consider the evidence on record, in its entirety and in case the charges not being found proved, the noticee is acquitted, and in the event of charges being found substantiated, such penalty, as is considered appropriate as per provisions of section 13 of the Act can be imposed, besides arrogation of amount involved in these contraventions.The penalty imposed has to be deposited in the concerned office of the Dy. Director within 45 days of the date of receipt of the Adjudication order. In case the party feels aggrieved by the orders of the adjudicating authority, he/she/they can refer appeal, before the Appellate Tribunal/Special Director (Appeal), Foreign Exchange. Whereas, another appeal lies to the High Court, against the order of the Appellate Tribunal, however, only in the matter s involving question/points of Law.PUBLIC GRIEVANCES MACHINERYThe Directorate keeps a constant vigil over its officers/staff and strict action is taken against anybody found/suspected to be involved in any undesirable activity. The Vigilance Cell of the Directorate works under the direct superintendence of the Director of Enforcement, and, at present, it includes two very senior officers.