Friday, 12 Sep, 2025
In addition, the conviction rate is abysmally low. In around 5,400 PMLA cases in 17 years, there have been only 23 convictions
The Enforcement Directorate (ED) is in news for several reasons. First, the Supreme Court upholding the validity of Prevention of Money Laundering Act and the investigative powers, arrest, attachment of property of the ED in totality. And second, the agency's raid at Arpita Mukherjee close aide of West Bengal Minister Partha Chatterjee's residence leading to their arrest.
Under the Narendra Modi government, there has been a sharp increase in the number of cases taken up by the Enforcement Directorate. The increase has been even sharper since the Modi government returned to power in 2019. In a written reply to a question by Janata Dal (United) MP Rajiv Ranjan Singh, who had asked for details of cases registered by the ED over the past decade, Union minister of state for finance Pankaj Chaudhary replied that “during the last 10 years, the Directorate of Enforcement has taken up around 24,893 cases for investigation under the provisions of Foreign Exchange Management Act, 1999 (FEMA) and has recorded around 3,985 cases under the Prevention of Money Laundering Act, 2002 (PMLA)". Overall, the number of cases taken up by the ED have risen by nearly five times, from 1,093 in 2014-15 to 5,493 in 2021-22.
The number of cases taken up for investigation under FEMA has seen a sharp rise. In 2014-15, 915 PMLA cases were registered which shot up to 5,313 in 2021-22. Likewise the cases under PMLA rose from 178 in 2014-15 to 1,180 in 2021-22. The highest number of money laundering and foreign exchange violation instances were taken up in 2021-22 when 1,180 PMLA and 5,313 FEMA complaints. Till 2022, the agency has attached proceeds of crime of ₹1,04,702 crores (approximately), and filed prosecution complaints (charge sheets) in 992 cases resulting in the confiscation of ₹869.31 crore and conviction of 23 accused
In addition, the conviction rate is abysmally low. In around 5,400 PMLA cases in 17 years, there have been only 23 convictions.
Under FEMA, money laundering is a compoundable civil offence, whereas PMLA specifically deals with money laundering where proceeds of a crime are involved. The Prevention of Money Laundering Act was enacted in 2002 and implemented in 2005. It was enacted to prevent money laundering mainly resulting from the international narcotics and drugs trade. Over the years a number of crimes have been brought under the ambit of this law through amendments, increasing the scope of Enforcement Directorate to start proceedings under the Act. It started with offences from six legislations but now it has offences from 30 legislations.
