ED seeks additional staff to enforce black money Bill

Agency says increased number of officials are needed to enforce the proposed Black Money Bill

The Enforcement Directorate (ED) has sought additional staff to enforce various provisions of the Undisclosed Foreign Income and Assets Bill, popularly termed the black money Bill. The Bill, which the government hopes will be passed in the Budget session of Parliament, vests additional responsibilities on the directorate to bring to book those stashing unaccounted assets abroad, under the Prevention of Money Laundering Act (PMLA).

The investigative agency has told the finance ministry its staff strength isn’t enough to handle the responsibilities. “The black money Bill lays additional responsibilities on us, as the offences would be tried as violation of PMLA. We would need at least 50 officials at various roles and positions to discharge our duties well,” said a source.

In March, the government had introduced the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015, which provides for steep penalties and imprisonment of up to 10 years for stashing unaccounted funds abroad.

The government will give a window to help those with such funds abroad to come clean by paying tax and penalty.

At an event, Enforcement Director Rajan Katoch said his organisation had accorded “high priority” to tackling cases pertaining to black money. In the last financial year alone it had attached assets worth about Rs 9,000 crore for hawala and money laundering crimes, he added.

Katoch said lack of manpower was the biggest challenge for the agency. “Manpower recruitment and retention is our single-most critical issue today. This (good results) has been achieved despite not only a large number of vacancies but an actual decline in staff numbers during the course of the year. Just think what would have been possible is we were anywhere near the full strength,” he said.

In 2014-15, the agency completed investigations in a total of 1,918 cases, against 1,836 in the previous year. About 2,000 preliminary inquiries were “resolved” during 2014-15, Katoch said. “With a new government in place and high priority accorded to tackling black money, the ED has been a busy place last year.”

In the past year, the directorate attached laundered assets valued at Rs 3,657 crore, against Rs 1,773 crore the previous year. Filing of prosecutions rose from 11 in 2012-13 and 55 in 2013-14 to 69 in 2014-15.