Enforcement Directorate wants broader powers under Black Money Act

NEW DELHI: Enforcement Directorate (ED) has sought broader powers under the newly enacted Undisclosed Foreign Income and Assets Act, popularly termed as the black money act. The agency is currently investigating over two dozen high-net worth Indians, including politicians and businessman, after their names figured in HSBC list, Liechtenstein Bank and Panama Papers.

In a letter to the Income-Tax department, ED has asked authorities to come up with a detailed guideline on the latest legislation dealing with black money. It has asked the I-T department to identify the stage at which ED would take over the probe to carry out criminal investigations under the money laundering act, explained a senior official.

According to section 51 of the black money act, the maximum punishment for "wilful tax defaulter" is 10 years with a fine. ED officials told ET: "The I-T department needs to define the stage at which a criminal action can be initiated against a wilful defaulter. It may also be possible to initiate action under PMLA when the assessment against an individual reaches at the level of a joint commissioner or higher."

Under section 4 of PMLA, punishment for money laundering may extend to seven years with a fine. ED has authority to attach the property of a person indulging in money laundering under section 5 of the act. ED has asked taxmen to define ‘search and seizure’ powers that will be with the agency in cases of black money.