Cases Under FEMA, PMLA Nearly Triple In First 3 Years Of Modi-Led NDA Govt’s Second Term: Union Ministry

The data was shared by the Union government in Lok Sabha on Monday by the Minister of State for Finance, Pankaj Chaudhary.

Enforcement Directorate
Enforcement Directorate logo for representational purpose. (PTI Photo)

New Delhi: In the 5,400 money laundering cases filed since the criminal law was enacted back in 2005, the Enforcement Directorate (ED) has till now secured the conviction against only 23 of them. The data was provided to Lok Sabha on Monday in a written reply by the Union Minister of State for Finance, Pankaj Chaudhary.

In addition, the total number of cases filed under the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA) nearly tripled in the Narendra Modi-led NDA government’s second tenure in 2019-2022 as compared to the corresponding 2014-2017 period of their first term.

In his reply to a question by Janata Dal (United) MP Rajiv Ranjan Singh, alias Lalan Singh, Chaudhary said that the ED recorded 5,422 cases under the PMLA till March 31, 2022. Further, it attached proceeds of crime of approximately Rs. 1,04,702 crore, and filed charge sheets in 992 cases, resulting in the confiscation of Rs 869.31 crore and conviction of the 23 accused.

The PMLA, which was enacted back in 2002, was implemented on July 1, 2005.

“In the last 10 years, the ED registered the highest number of money laundering and foreign exchange violation cases during the 2021-22 financial year — at 1,180 and 5,313 complaints respectively,” the Minister wrote in response to Lok Sabha.

In addition, ED filed a total of 3,985 criminal complaints under the PMLA and 24,893 under the civil law of the FEMA during the financial years between 2012-13 to 2021-22.

The Minister added that the ED registered 221 money laundering cases during the 2012-13 fiscal year, 209 (2013-14), 178 (2014-15), 111 (2015-16), 200 (2016-17), 148 (2017-18), 195 (2018-19), 562 (2019-20), 981 (2020-21) and 1,180 cases (2021-22).

Similarly, the registration of FEMA cases stood at 1,722 (2012-13), 1,041 (2013-14), 915 (2014-15), 1,516 (2015-16), 1,993 (2016-17), 3,627 (2017-18), 2,659 (2018-19), 3,360 (2019-20), 2,747 (2020-21) and 5,313 (2021-22).

Notably, the FEMA was enacted in 1999 after repealing the Foreign Exchange Regulation Act (FERA) of 1973.

“Till March 31, 2002, the agency took up a total of 30,716 cases for investigation under FEMA and issued 8,109 show cause notices (after completion of the investigation)”, the minister added.

According to Chaudhary, over 6,472 show cause notices were adjudicated under the FEMA, and a penalty of around Rs 8,130 crore was imposed. Assets worth approximately Rs 7,080 crore were seized under FEMA, said the minister.

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