Roadmap for Answer Writing 1. Introduction Overview of the Arbitration and Conciliation Act, 1996: Briefly explain the purpose of the Act in providing an effective framework for arbitration and conciliation in India. Context of Recent Changes: Introduce the recent ordinance promulgated by the ...
Model Answer The Enforcement Directorate (ED), tasked with enforcing economic laws such as the Foreign Exchange Management Act (FEMA) 1999 and the Prevention of Money Laundering Act (PMLA) 2002, has faced significant criticisms regarding its functioning and effectiveness. These criticisms stem fromRead more
Model Answer
The Enforcement Directorate (ED), tasked with enforcing economic laws such as the Foreign Exchange Management Act (FEMA) 1999 and the Prevention of Money Laundering Act (PMLA) 2002, has faced significant criticisms regarding its functioning and effectiveness. These criticisms stem from concerns about its operational transparency, fairness, and accountability.
1. Low Conviction Rate
- Despite initiating a large number of investigations, ED’s conviction rate is remarkably low.
Fact: As of March 31, 2022, ED achieved convictions in only 23 cases out of 5,422 PMLA cases, reflecting a conviction rate of less than 0.5%.
Implication: This undermines public confidence in its ability to ensure justice and effectively combat money laundering.
2. Lack of Accountability
- The ED’s operations lack transparency, which raises concerns about fairness and due process.
Fact: The ED is not obligated to share the Enforcement Case Information Report (ECIR) with the accused, severely hampering their defense.
Criticism: This opacity reduces credibility and raises questions about impartiality.
3. Abuse of Wide Powers
- The ED possesses broad powers without adequate checks and balances.
Fact: The agency can search and seize property without registering a scheduled crime with a magistrate.
Implication: This undermines judicial oversight and compromises individual rights.
4. Discretion in Application of Law
- There are allegations of selective enforcement, often influenced by political considerations.
Fact: Under Section 65 of PMLA, ED has discretion to apply CrPC or PMLA provisions, raising concerns about potential bias.
5. Delayed Pre-trial Processes
- Prolonged investigations and repeated summons are often perceived as harassment.
Fact: The Supreme Court criticized ED for filing multiple charge sheets, delaying trials, and prolonging legal uncertainty.
Conclusion
While the ED plays a crucial role in maintaining India’s financial integrity, its functioning is marred by issues that undermine public trust. Improving accountability, ensuring judicial oversight, and streamlining investigative processes are essential to bolster its credibility and effectiveness.
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Model Answer Introduction The Arbitration and Conciliation Act, 1996, serves as the cornerstone for arbitration and conciliation in India, promoting efficient dispute resolution outside traditional courts. Recent amendments through an ordinance aim to enhance this framework, addressing long-standingRead more
Model Answer
Introduction
The Arbitration and Conciliation Act, 1996, serves as the cornerstone for arbitration and conciliation in India, promoting efficient dispute resolution outside traditional courts. Recent amendments through an ordinance aim to enhance this framework, addressing long-standing concerns.
Major Changes Brought by the Recent Ordinance
Impact on India’s Dispute Resolution Mechanism
Conclusion
The recent changes to the Arbitration and Conciliation Act, 1996, through the ordinance, address critical issues of efficiency, transparency, confidentiality, and clarity. These improvements are poised to encourage more parties to embrace arbitration, thus strengthening India’s alternative dispute resolution framework.
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