Lok Sabha Question No. 386 (STARRED), answered on 2016-08-12
Subject: Financial Frauds
Ministry: FINANCE
Asked by: RAVINDRA KUMAR PANDEY

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA STARRED QUESTION NO. *386

## TO BE ANSWERED ON FRIDAY, AUGUST 12, 2016

SHRAVANA 21, 1938 (SAKA)

## Financial Frauds

* 386. Shri Ravindra Kumar Pandey:

Will the Minister of FINANCE be pleased to state:

- (a) whether  any  survey  has  been  conducted  to  assess  the  efficacy  of  the  Enforcement Directorate (ED), Income Tax Department and Central Customs and Excise Department in implementation of the Prevention of Money Laundering Act, 2002, the Foreign Exchange Management Act,1999 and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 and if so, the outcome thereof;
- (b) whether ED has started investigation against accused persons/entities in cheating and corruption cases and if so, the details of such cases during the last three years and the current year;
- (c) whether the Customs Department has started investigation against alleged malpractices/irregularities at the Inland Container Depots in the country and if so, the details thereof for the above period; and
- (d) the action being taken by the Government in these cases?

## ANSWER

## FINANCE MINISTER (SHRI ARUN JAITLEY)

- (a) to (d) :  A statement is laid on the Table of the House.

* * * * *

## Statement referred to in parts (a) to (d) of the Lok Sabha Starred Question No. *386 for answer on 12-08-2016 regarding  'Financial Frauds' by Shri Ravindra Kumar Pandey

- (a) The different agencies of Revenue Department implement so many different Acts.  The  efficacy  of  these  agencies  is  measured  by  way  of  monitoring  of  their activities regularly. No specific survey is conducted by the Government to assess the efficacy of these law enforcement agencies.
- (b) Enforcement Directorate conducts investigations under PMLA in cases where one  or  more  offences  included  in  the  schedule  to  PMLA  are  committed  by  any persons/entities. These include cases involving predicate offence under Section 420 of Indian Penal Code, 1860 (i.e. cheating) and under the Prevention of Corruption Act, 1988  (i.e.  corruption).  The  number  of  such  cases  registered  during  the  last  three financial years and the current year (upto 31.07.2016) are as follows:-
- (c) In  the  year  2013,  Directorate  of  Revenue  Intelligence  (DRI)  had  started investigation,  wherein  some  containers  were  imported  in  the  name  of  different firms/companies and before examination, goods contained in the said containers were stolen from ICD, Tughlakabad, New Delhi.
- (d) The cases under Enforcement Directorate are at various stages of investigations. Disclosure of details, names of persons and other particulars of these cases  at  this  stage  will  not  be  in  public  interest  as  the  same  may  hamper  the investigations.

| S.No.   | Nature of offence                      | Cases registered during the financial year   | Cases registered during the financial year   | Cases registered during the financial year   | Cases registered during the financial year   |
|---------|----------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|
|         |                                        | 2013-14                                      | 2014-15                                      | 2015-16                                      | 2016-17(upto 31.07.2016)                     |
| 1       | Section 420 of Indian Penal Code, 1860 | 95                                           | 101                                          | 57                                           | 24                                           |
| 2       | Prevention of Corruption Act, 1988     | 55                                           | 49                                           | 47                                           | 10                                           |

Further, DRI has initiated action for demanding duty of Rs.87.21 lakhs in respect of stolen goods under the Customs Act, 1962 from the Custodian, i.e., CONCOR.