Context:
On January 8, the Enforcement Directorate (ED) conducted raids in Kolkata at premises linked to Indian Political Action Committee (I-PAC), which managed the Trinamool Congress (TMC) 2021 election campaign. The action has triggered political controversy ahead of elections in West Bengal.
Key Highlights:
Investigation Details
- ED searches linked to a money laundering probe.
- Objective: Trace proceeds of crime under investigation.
- ED approached the Calcutta High Court, alleging obstruction and removal of documents.
Political Reactions
- West Bengal CM Mamata Banerjee accused the Centre of:
- Political vendetta
- Misuse of central agencies
- Allegations of targeting opposition parties before elections.
Broader Pattern
- Previous instances cited:
- Actions by ED, CBI, IT Department against opposition-ruled States.
- Freezing of Congress bank accounts during 2024 general elections.
- Raises concerns about level playing field during elections.
Key Concepts Involved
- Enforcement Directorate (ED):
- Investigates offences under:
- Prevention of Money Laundering Act (PMLA), 2002
- Foreign Exchange Management Act (FEMA), 1999
- Investigates offences under:
- Money Laundering:
- Process of disguising illegally obtained funds.
- Centre-State Relations:
- Defined under Part XI of the Constitution.
- Based on cooperative federalism.
Relevant Prelims Points:
- ED functions under the Department of Revenue, Ministry of Finance.
- PMLA, 2002
- Provides for attachment and confiscation of property.
- Establishes Adjudicating Authority and Appellate Tribunal.
- ED officers have powers of:
- Search and seizure
- Arrest
- Provisional attachment of property
- Election Commission of India (ECI)
- Constitutional body under Article 324.
- Ensures free and fair elections.
- Doctrine of Cooperative Federalism
- Encourages coordination between Centre and States.
Relevant Mains Points:
- Institutional Autonomy and Democratic Integrity
- Allegations of selective targeting may:
- Undermine trust in investigative agencies
- Erode institutional credibility
- Free and fair elections are part of Basic Structure Doctrine.
- Centre–State Relations
- Perceived misuse of central agencies can:
- Deepen political polarization
- Strain federal balance
- Raises concerns about asymmetric power structures.
- Electoral Level Playing Field
- Investigative actions close to elections may:
- Impact campaign financing
- Influence voter perception
- Institutions like:
- ECI
- Judiciary
- Media
- IT Department
must ensure neutrality.
- Governance and Accountability
- Anti-corruption efforts are essential.
- However, enforcement must be:
- Transparent
- Non-partisan
- Legally sound
Way Forward
- Strengthen institutional independence safeguards.
- Ensure judicial oversight over investigative actions.
- Develop transparent protocols for agency action during election periods.
- Reinforce norms of cooperative federalism.
UPSC Relevance:
- GS 2: Polity – Federalism, Institutional integrity
- GS 2: Governance – Accountability of investigative agencies
- GS 3: Internal Security – Economic offences and money laundering