ED to focus more on Forex and FDI violations in FY25: ED Chief Rahul Navin

The Directorate of Enforcement (ED) will prioritise investigations into Foreign Exchange Management Act (FEMA) and Foreign Direct Investment (FDI) violations in the current financial year, according to ED Director Rahul Navin. This strategic focus comes after India improved its global standing in anti-money laundering efforts last year.

Speaking at the Enforcement Directorate Day event in Delhi, Navin said the ED will target violations involving export-import manipulation, irregular FDI inflows, misuse of external commercial borrowings, unauthorised overseas fund transfers, and land ownership by non-residents. Where applicable, defaulters will be encouraged to file applications for compounding of offences.

Navin applauded the agency’s recent enforcement achievements, including the restitution of Rs. 15,261 crore to banks and investors in 30 money laundering cases during FY25.

He also emphasised the ED’s growing use of ‘non-conviction-based confiscation’ — a global practice used to recover assets in cases where criminal prosecution is not feasible due to factors such as the accused being deceased, untraceable, or where proceedings are not viable in old cases. This method is helping to speed up asset recovery without requiring a criminal conviction.

Navin pointed to a major increase in enforcement under the Prevention of Money Laundering Act (PMLA) over the past decade. While fewer than 200 cases were registered annually between 2005 and 2014, the ED has since initiated over 5,100 money laundering cases.

In FY25 alone, the ED launched 775 new PMLA investigations, filed 333 prosecution complaints, and secured 34 convictions.

The agency also issued 461 provisional attachment orders worth Rs. 30,036 crore this year—marking a 44% increase in the number of orders and a 141% rise in their value compared to the previous year. The total value of assets under provisional attachment reached Rs. 1.55 trillion as of March 31, 2025.

Pankaj Chaudhary, Minister of State for Finance, commended the ED’s asset restitution efforts, highlighting how the process benefits small investors defrauded by scamsters.

Additional Solicitor General SV Raju, also present at the event, urged ED officials to exercise restraint in making arrests, emphasising the importance of having solid legal grounds and appropriate timing.

Navin acknowledged that the progress of PMLA cases has been hindered by judicial delays, and noted that this remains a challenge for the agency moving forward.