Jharkhand

• 09 May 2024

ED Raids Jharkhand's Rural Development Department

Why in News?

Recently, The Enforcement Directorate (ED) raided the premises of the Jharkhand rural development department in Ranchi as part of a money laundering investigation in which it recently seized huge cash.

Key Points

• The ED had claimed before a court that the government officials from "top to bottom" of the rural development department are involved in the alleged illegal cash payments nexus.
  • It also claimed that the names of "senior bureaucrats and politicians" have emerged in the case and this is being investigated.
• The money laundering case of September, 2020 is based on an anti-corruption branch (Jamshedpur) case of Jharkhand Police and a March 2023 FIR filed by the Economic Offences Wing (EOW) of the Delhi Police against former chief engineer of the state rural works department and some others.

The Directorate of Enforcement (ED)

• It is a multi-disciplinary organization mandated with investigation of offences of money laundering and violations of foreign exchange laws.
  • It functions under the Department of Revenue of the Ministry of Finance.
• As a premier financial investigation agency of the Government of India, the Enforcement Directorate functions in strict compliance with the Constitution and Laws of India.

Money laundering

• It is concealing or disguising the identity of illegally obtained proceeds so that they appear to have originated from legitimate sources. It is frequently a component of other, much more serious, crimes such as drug trafficking, robbery or extortion.
• According to the International Monetary Fund (IMF), global Money Laundering is estimated between 2 to 5% of World Gross Domestic Product (GDP).