Paper: GS – II, Subject: Polity, Topic: Institution, Issue: Enforcement Directorate.
Context:
The recent Supreme Court proceedings regarding the Enforcement Directorate’s (ED) raids on the Tamil Nadu State Marketing Corporation (TASMAC).
- The Chief Justice of India (CJI) B.R. Gavai has raised significant concerns about the legality and implications of the ED’s actions, emphasizing the violation of the federal structure of the country.
Key Takeaways:
- The court’s observations highlight the ongoing tension between state and central authorities in matters of governance and law enforcement.
About Enforcement Directorate: The Directorate of Enforcement or Enforcement Directorate (ED) is a domestic law enforcement agency and economic intelligence agency. It is responsible for enforcing economic laws and fighting economic crimes in India.
Nodal Ministry: Ministry of Finance.
About Prevention of Money Laundering Act, 2002: The Prevention of Money Laundering Act (PMLA), 2002 was enacted in January, 2003.The Act seeks to combat money laundering in India and has three main objectives: To prevent and control money laundering To confiscate and seize the property obtained from the laundered money; andTo deal with any other issue connected with money laundering in India.
Powers of the ED under the Prevention of Money Laundering Act, 2002 (PMLA):
The Supreme Court stayed ED’s probe into TASMAC, criticizing it for violating federal principles and due process, stressing that criminal liability should target individuals, not a State-run corporation.
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