How to make a Complaint to the Enforcement Directorate (ED)?

Read on to learn all about how to make an ED complaint online. For further assistance, LawRato can help you seek free legal advice and the option to connect to top-ranking lawyers.

Jurisdiction of the Enforcement Directorate

Learning about “ how to make a complaint to the Enforcement Directorate?” starts with knowing its jurisdiction. The Enforcement Directorate primarily enforces two laws: the Foreign Exchange Management Act (FEMA), 1999, and the Prevention of Money Laundering Act (PMLA). Both FEMA and PMLA apply to all of India, including Jammu & Kashmir. Therefore, the Enforcement Directorate has the authority to take action against anyone under these laws. FEMA cases may proceed in civil court, while PMLA cases would be addressed in criminal court. Whether a politician or a businessman, the agency has authority over any person or legal entity who commits a crime. If a public employee is involved in any money laundering offense, they are subject to the agency's jurisdiction.

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Offenses against which a Complaint can be made to the Enforcement Directorate

The Enforcement Directorate handles both civil and criminal violations, allowing ED complaint online or offline. It's tasked with enforcing economic laws like FEMA and PMLA, dealing with offences under these Acts.

1. Offenses related to FEMA: The designated Enforcement Directorate Officials investigate and adjudicate violations under Foreign Exchange Regulation Act (FERA), 1947, and FEMA. Violations under FEMA may include non-realization of export earnings, foreign exchange racketeering, and non-repatriating foreign exchange. A violation under these provisions is punishable by an arrest by the Enforcement Directorate, settlement, or imposition of a penalty up to three times the sum involved.

2. Offenses related to PMLA: The Enforcement Directorate is entrusted with the power to attach the assets of the accused, search, seize, or freeze the property of the accused if they are found guilty of committing an offense under the PMLA. The offenses covered under PMLA are criminal in nature.

3. Handling cases under The Fugitive Economic Offenders Act, 2018: The Fugitive Economic Offenders Act, 2018 prohibits economic offenders who choose to stay outside the country's jurisdiction to protect themselves from evading the law of the country and preserve its justice system. Under the Act, the ED has been conferred with the power to cooperate with the Government of India and foreign governments to trace and arrest the guilty.

Step-by-step procedure for filing a Complaint to the Enforcement Directorate

Step 1: Filing Complaint to Other Agencies If a person wants to report a matter relating to the FEMA and PMLA, they have to register their complaint with an agency or the police other than the Enforcement Directorate. Before complaining to the Enforcement Directorate, a person has to complain to any other agency or the Police after which the Enforcement Directorate will investigate the matter and identify the accused. PMLA comprises 157 sections of offenses that relate to money laundering. If the offense registered in the complaint is one of these 157 offenses, then the Enforcement Directorate has the power to take action on the complaint directly. The Officers have the power to investigate, search, and seize the property of the person against whom the complaint is made.

Step 2: Sending a complaint to the Enforcement Directorate directly While a person does not have an option to approach the Enforcement Directorate directly, they can send a complaint relating to illegalities in money laundering and foreign exchange to the following address: Director, Enforcement Directorate, 6th Floor, Lok Nayak Bhawan, Khan Market, New Delhi- 110003 A person may also apply to a court for them to refer the matter to the Enforcement Directorate so that the matter can be investigated by the Enforcement Directorate agency.

Can the Enforcement Directorate take action on its own?

The Enforcement Directorate does not have the power to take action on its own (suo moto). It can only do so when a complaint is made. The Enforcement Directorate Agency may also attach the property of the accused and arrest them. The matter is resolved through adjudication by courts or the PMLA court.

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The procedure of Investigation after the filing of a Complaint

1. Searching a place or a person: Upon receipt of a complaint by any authority or the Police, Enforcement Directorate Officers must promptly notify the Magistrate as per Section 157 of the Code of Criminal Procedure (CrPC). Subsequent to securing the approval of the Magistrate, Officers are empowered to conduct searches of premises and or vehicles or forcibly open safes or lockers to fulfil their duties. The Officers are also empowered to search any person if there is a reason to believe that they could be involved in a crime. Under Section 19 of the PMLA, the Officers have the power to arrest a person if they have any reason to believe that they are involved in a crime that relates to money laundering.

2. Seizing or confiscating any Property: The Enforcement Directorate Officers are entrusted with the power to seize or confiscate any property if they have reason to believe that it has a connection with the money laundered. Section 17 and 18 of the PMLA lay down provisions for the search and seizure of the property connected to the laundered money.

3. Preparation of a Report: After the investigation has been conducted, the Officers shall prepare a report detailing the entire matter. It must also include the investigation undertaken by the officers, details of places or persons investigated, details of the property attached, if any, and details of the person arrested if any.

4. Taking action based on Report: Following the preparation of the report, the matter can either be resolved by the Enforcement Directorate's own adjudicating body or it may be referred to the CBI court or the Supreme Court. The aggrieved party also has the option to file an appeal with a higher court. For the purpose of appealing, the agency has its appellate panel. In the event of a violation of FEMA's provisions, the court may impose a fine of three times the amount involved, as well as a sentence of rigorous imprisonment of not more than seven years.

Why do you need a lawyer?

Any successful defense, whether civil or criminal, is based on a sound strategy. It is significant to lay down an effective way to counter the prosecution's case which can only be done with the help of a criminal lawyer . A case in the hands of the Enforcement Directorate can be extremely complicated and a lawyer well-versed with civil and criminal laws will enable the accused to defend their case effectively. Therefore, it is exceedingly significant for an accused to contact a lawyer as soon as they are charged with an offense under either Act.

Advocate Jaspreet Singh Rai provides service in various fields of law including civil and criminal law. With 18 years of experience in the field of law, he has provided advisory and legal consultancy services to numerous clients. He also specializes in matters pertaining to corruption and CBI cases.

Testimonials

1. “ My brother was falsely accused of money laundering when he obtained a large amount of money as a part of his income. However, a false FIR alleging that the money was in fact obtained from a crime led to an investigation by the ED. Only after consulting with a lawyer were we able to defend my brother in the case and get a favorable outcome.” -Mr. Om Khanna 2. “ I was charged with money laundering and as a result, the ED attached my residential property. I immediately contacted a lawyer from LawRato.com who developed an effective defense for my case and enabled me to get my property back. The case is still pending, but with the help of my lawyer I have been able to defend myself in the money laundering case and secured substantial evidence to present in court.” -Mrs. Mira Bhatt 3. “ My sister was falsely charged with violating the FEMA Act. I immediately consulted a civil lawyer who helped me understand the technicalities of the law. He helped my sister in defending her case and she was saved from paying a hefty amount of penalty for the offense.” -Ms. Sushila Sibal

Advocate Chikirsha Mohanty

Greater Kailash - 1, Delhi
5 years

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