Facing staff crunch, ED could take 6 years to probe black money cases
An internal assessment of Enforcement Directorate, which handles all PMLA cases, shows that its investigating officers achieved an average disposal rate of just 1.4 cases during 2013-14.
NEW DELHI: Ambitious plans on recovering black money could run into reality check soon.
Official estimates show that for investigating officers to complete just the existing cases under Prevention of Money Laundering Act (PMLA), the most effective legislation for dealing with black money, would take at least six more years. And if the trend of more and more cases being referred for investigation under PMLA continues, this could take even longer.
An internal assessment of Enforcement Directorate, which handles all PMLA cases, shows that its investigating officers achieved an average disposal rate of just 1.4 cases during 2013-14. And the pendency of PMLA cases per officer was a staggering 7.7.
If the existing number of investigating officers were to complete the PMLA cases, it would take 5.5 years.
READ ALSO: Black money — Come with proof, not for fishing expedition, Swiss envoy tells India
Never talked about bringing black money in 100 days: Govt
However, this pendency could further go up as the SIT on black money has been referring more and more cases to ED for registration under PMLA. Among those cases that are now being taken up under PMLA are those originating from mining scams and some from the list of Indians holding accounts in tax havens.
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Officials concede that PMLA is the most effective legislation on black money issues, especially since it provides for easy attachment of assets linked to money laundering. In 2013-14, properties valued at over Rs 1395 crore had been confirmed by adjudicating authority, while another Rs 1773 crore worth of assets were under attachment.
The Central Board of Excise and Customs has recently written to the government to give powers to act under PMLA to the customs and Directorate of Revenue Intelligence (DRI).
ED is also facing similar delays in the administration of FEMA (foreign exchange management act). While an investigating officer disposes on average 15.7 FEMA cases a year, each one has 50.8 cases pending against them. This means each officer would take over three years to dispose of existing FEMA cases.
The delay in ED is caused by huge shortage of manpower, with the agency running with just 33% of the sanctioned strength. Out of a sanctioned strength of 2064, it has just 686 employees. A total of 1378 posts are to be filled up.
ED is also facing a fresh exodus of officials on deputation in recent months, because of their eagerness to return to the parent cadre for career progression.
Official estimates show that for investigating officers to complete just the existing cases under Prevention of Money Laundering Act (PMLA), the most effective legislation for dealing with black money, would take at least six more years. And if the trend of more and more cases being referred for investigation under PMLA continues, this could take even longer.
An internal assessment of Enforcement Directorate, which handles all PMLA cases, shows that its investigating officers achieved an average disposal rate of just 1.4 cases during 2013-14. And the pendency of PMLA cases per officer was a staggering 7.7.
If the existing number of investigating officers were to complete the PMLA cases, it would take 5.5 years.
READ ALSO: Black money — Come with proof, not for fishing expedition, Swiss envoy tells India
Never talked about bringing black money in 100 days: Govt
However, this pendency could further go up as the SIT on black money has been referring more and more cases to ED for registration under PMLA. Among those cases that are now being taken up under PMLA are those originating from mining scams and some from the list of Indians holding accounts in tax havens.
Officials concede that PMLA is the most effective legislation on black money issues, especially since it provides for easy attachment of assets linked to money laundering. In 2013-14, properties valued at over Rs 1395 crore had been confirmed by adjudicating authority, while another Rs 1773 crore worth of assets were under attachment.
The Central Board of Excise and Customs has recently written to the government to give powers to act under PMLA to the customs and Directorate of Revenue Intelligence (DRI).
ED is also facing similar delays in the administration of FEMA (foreign exchange management act). While an investigating officer disposes on average 15.7 FEMA cases a year, each one has 50.8 cases pending against them. This means each officer would take over three years to dispose of existing FEMA cases.
The delay in ED is caused by huge shortage of manpower, with the agency running with just 33% of the sanctioned strength. Out of a sanctioned strength of 2064, it has just 686 employees. A total of 1378 posts are to be filled up.
ED is also facing a fresh exodus of officials on deputation in recent months, because of their eagerness to return to the parent cadre for career progression.