17 May 2024

About Enforcement Directorate (ED)

• 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.
• The origin of the ED goes back to May 1956, when an "enforcement unit" was formed, for handling Exchange Control Laws violations under the Foreign Exchange Regulation Act, 1947.
• In 1957, the unit was renamed as the Enforcement Directorate.
• Nodal Ministry: Department of Revenue, Ministry of Finance.
• Objectives of the ED
• The prime objective of the Enforcement Directorate is the enforcement of three key Acts of the Government of India namely:

• Foreign Exchange Management Act, 1999 (FEMA),
• Prevention of Money Laundering Act, 2002 (PMLA), and
• Fugitive Economic Offenders Act, 2018 (FEOA).

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; and
• To deal with any other issue connected with money laundering in India.

• Money laundering : Sec. 3 of the Act defines offence of money laundering as whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of offence of money-laundering.
• The Act was amended by the Prevention of Money Laundering (Amendment) Act, 2009 and by the Prevention of Money Laundering (Amendment) Act, 2012.
• Most recently, the PMLA was amended through the -

• Finance Act, 2015 ('2015 Amendment')
• Finance Act, 2018 ('2018 Amendment')
• Finance Act, 2019 ('2019 Amendment')

GS 2 : [IR : Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests] 

BRICS

• BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China, and South Africa.
• In 2001, the British Economist Jim O’Neill coined the term BRIC to describe the four emerging economies of Brazil, Russia, India, and China.
• The grouping was formalized during the first meeting of BRIC Foreign Ministers in 2006.
• South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym BRICS.
• The Johannesburg declaration,2023 issued after the summit, said Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE) had been invited to become full members from January 1, 2024.
• The BRICS (prior to expansion) represented 41% of the global population, 24% of the global GDP, and 16 % of the global trade.
• Since 2009, its summits are held annually.

GS 2 : [Indian Constitution - Historical underpinnings, evolution, features, amendments, significant provisions and basic structure]

The Supreme Court’s ruling safeguards landowners from arbitrary government acquisition, emphasizing adherence to Article 300A, ensuring the constitutional right to property and sub-rights compliance.

Procedural Sub-Rights under Right to Property

These seven rights are foundational components of a law that is in tune with Article 300A, and the absence of one of these or some of them would render the law susceptible to challenge:

• Right to Notice: Individuals must be informed about the intention to acquire their property.
• Right to Be Heard: Affected individuals have the right to voice objections.
• Right to a Reasoned Decision: The government must justify the acquisition with a reasoned decision.
• Public Purpose Justification: Acquisitions must serve a demonstrable public purpose.
• Right of Restitution or Fair Compensation: Landowners are entitled to fair compensation for their property.
• Right to An Efficient and Expeditious Process: Acquisition procedures should be efficient and adhere to set timelines.
• Right of Conclusion: The process concludes with the physical transfer of property; failure to take possession renders the acquisition incomplete.

What is Right to Property under Constitution of India?

Initial Position of Right to Property:

• The Right to Property was initially recognized as a fundamental right under Article 19(1)(f) and Article 31 of the Constitution of India.
• These provisions guaranteed citizens the right to acquire, hold, and dispose of property, and prohibited the deprivation of property without the authority of law.

1st Amendment (1951):

44th Amendment (1978):

• The most significant change came with the 44th Amendment Act, 1978, which altered the constitutional landscape by abolishing the fundamental right to property altogether.
• Article 19(1)(f) and Article 31 were omitted with effect from 20th June 1979.
• The 44th Amendment Act inserted a new provision, Article 300-A, which acknowledged the right to property as a legal right rather than a fundamental right.

Current Status:

• As of the present constitutional framework, the Right to Property is primarily governed by Article 300-A of the Constitution of India.
• Article 300-A states that no person shall be deprived of his or her property save by authority of law.
• Unlike the earlier provisions, the current stance emphasizes that the right to property is not absolute and can be regulated by law.

What the Landmark Cases Related to Right to Property?

A K Gopalan v. State of Madras (1950):

• This case, heard by the Madras HC, was one of the early instances where the court grappled with the conflict between the right to property and the state's power to regulate it.
• The court upheld the constitutionality of the Madras Maintenance of Public Order Act, 1949, which authorized the state to take possession of any property for public order.

Kesavananda Bharati v. State of Kerala (1973):

• This case is often referred to as the "basic structure doctrine" case.
• While not directly related to the right to property, it is crucial in understanding the constitutional context.
• The Supreme Court, in a historic decision, held that while the Parliament has the power to amend the Constitution, it cannot alter its basic structure.
• This case indirectly influenced the subsequent amendment that transformed the right to property into a legal right.

Minerva Mills Ltd. v. Union of India (1980):

• In this case, the Supreme Court struck down parts of the 42nd Amendment Act, 1976, which gave Parliament unbridled power to amend the Constitution.
• The court, while upholding the amendment abolishing the fundamental right to property, emphasized that even though the right to property is no longer a fundamental right, it continues to be a constitutional right.

Jilubhai Nanbhai Khachar v. State of Gujrat (1995):

• SC held that the Right to Property is not a part of the Basic Structure Doctrine of the Constitution.

GS-2: [Polity and Contitution : Representation Of People's Act]

Registering a Political Party

• A political party recognized as a ‘National’ or ‘state’ party under the Election Symbols (Reservation and Allotment) Order, 1968 (Symbols Order) by the Election Commission of India (ECI) is referred to as a Recognized Political Party (RPP).
• Recognition as a ‘National’ or ‘state’ political party is contingent upon meeting specific criteria, such as winning a requisite number of seats or obtaining a required percentage of votes in a general election to the Lok Sabha or State Assembly.
• Currently, there are 6 National political parties and 61 state political parties that have been granted recognition. Recognized parties benefit from additional privileges, including the reservation of a symbol during elections and the designation of forty ‘star campaigners’.
• Registered political parties enjoy the following legal benefits:

• Tax exemption for donations received under Section 13A of the Income Tax Act, 1961.
• Common symbol for contesting general elections to the Lok Sabha/State Assemblies
• Twenty ‘star campaigners’ during the election campaign. As per the ECI, there are 2,790 active registered political parties in India.

 

Note: There is no procedure available for de-registration of dormant political parties.

 

What are the issues related Criteria for Deregistration?

• Misuse of Privileges: Non-contesting RUPPs raise concerns about potential misuse of benefits like income tax exemption and donations for purposes such as money laundering.
• Absence of De-registration Powers: The Representation of the People Act (RP Act) does not explicitly empower the Election Commission of India (ECI) to de-register political parties for failure to contest elections, conduct inner-party elections, or submit required returns.
• Legal Limitations: The Supreme Court ruling in “Indian National Congress versus Institute of Social Welfare & Ors (2002)” affirmed that the ECI lacks the authority to de-register political parties under the RP Act, except under extraordinary circumstances such as fraudulent registration or cessation of allegiance to the Constitution.
• Violations of Model Code of Conduct (MCC): Recognised political parties have been found guilty of breaching the MCC, which prohibits the exploitation of caste and communal sentiments for electoral gain, as well as voter bribery and intimidation.