ED is a law enforcement agency formed by the Department of Revenue by the government of India. It is founded on May 1, 1956, and its headquarter is in New Delhi, India. The Ministry of Finance is responsible for ED. ED consists of its cadre while more than 60% of IAS, IRS, AND IPS are promoted officers by this department.

ED was a government agency which forms to fight against economic crimes in India. It has also other 4 regional offices in Mumbai, Chennai, Chandigarh, and Kolkata, and it is maintained by Special Directors of Enforcement. At the time of starting the ED department, it was named ‘Enforcement Unit, and later it was renamed “Enforcement Directorate” in short ED.

The main functions of ED department include the following acts:

• The Prevention of Money Laundering Act,2002 (PMLA)
• The Foreign Exchange Management Act, 1999 (FEMA)
• The Fugitive Economic Offenders Act, 2018 (FEOA)
• The Foreign Exchange Regulation Act, 1973 (FERA)
• Sponsoring agency under COFEPOSA

In simple words, the ED department was take cares about the criminal laws and to prevent money laundering. ED has also have rights to amend the laws relating to the external trade and payments, and it also promotes the development and maintenance of foreign exchange market in India. ED has also rights to issue show cause notice under the foreign Exchange Regulation Act, 1973. And according to the COFEPOSA Act ED empowered to sponsor cases of preventive detention with regard to contraventions of FEMA.

Sanjay Kumar Sharma is the chief of the ED department, and it is work under the Ministry of Finance. ED enforces 2 laws, FEMA and PMLA. FEMA is civil law and the PMLA is criminal law.