Prevention of Money Laundering Act (PMLA), 2002
PMLA, 2002, is India's primary law to combat money laundering, enabling the ED to investigate, attach, and confiscate laundered assets and imposing reporting...
ED attaches 4 hotels, 2 flats in DA probe against ex-IPS officer from Assam
The Enforcement Directorate (ED) has provisionally attached four hotels in Guwahati and two flats in Mumbai, collectively valued at ₹53.28 crore, in a money laundering case linked to disproportionate assets against a retired IPS officer from Assam, Prasanta Kumar Dutta. The action was taken under the Prevention of Money Laundering Act (PMLA). The case stems from an FIR by the Assam Anti-Corruption and Vigilance Bureau, alleging that Dutta amassed assets worth ₹79 crore against a disclosed income of ₹7.23 crore during his service from 1992-2019. The ED claims he laundered money through companies, including Ishan Commercial, becoming its largest shareholder and beneficial owner of three hotels.
Syllabus mapping
Prelims takeaways
- The Enforcement Directorate (ED) is a multi-disciplinary organization mandated to investigate offenses of money laundering and violations of foreign exchange laws.
- The Prevention of Money Laundering Act (PMLA) empowers the ED to attach properties derived from or involved in money laundering.
- Disproportionate assets cases often involve collaboration between state anti-corruption bureaus and central agencies like the ED.
- Understanding the powers and functions of statutory bodies like the ED is crucial for UPSC Prelims.
Elimination traps
- Specific monetary values (e.g., ₹53 crore, ₹79 crore) are generally not asked.
- Names of specific properties or companies (e.g., Ishan Commercial, Samartha Deep) are usually irrelevant.
- The exact year of the officer's retirement or the specific dates of action are not typically tested.
Static concepts
- Prevention of Money Laundering Act (PMLA)
- Disproportionate Assets (DA)
- Money Laundering
- Attachment of Assets
Probable question areas
Question areas
- Powers and functions of the Enforcement Directorate (ED).
Question areas
- Key provisions and objectives of the Prevention of Money Laundering Act (PMLA).
Question areas
- Distinction between various anti-corruption agencies (e.g., CBI, ED, State Vigilance Bureaus).
Question areas
- Definition and implications of money laundering and disproportionate assets.
UPSC concepts in this story
Durable syllabus ideas for revision — not article memory.
Enforcement Directorate (ED)
ED is a key agency under the Ministry of Finance, combating economic crimes like money laundering and foreign exchange violations through acts like PMLA and ...
Previous year Prelims questions on overlapping themes and topics.
If a particular area is brought under the Fifth Schedule of the Constitution of India, which one of the following statements best reflects the consequence of it?
Explanation
Correct answer
A. This would prevent the transfer of land of tribal people to non-tribal people.
The Fifth Schedule of the Constitution deals with the administration and control of Scheduled Areas as well as of Scheduled Tribes residing in any State other than the States of Assam, Meghalaya, Tripura, and Mizoram. The governor can make regulations for the peace and good government of a scheduled area after consulting the tribes' advisory council. Such regulations may prohibit or restrict the transfer of land by tribal to non tribal members or among members of the scheduled tribes, and regulate the allotment of land to members of the scheduled tribes. Option B is incorrect. According to the provisions of Paragraph 4, under Article 244(1) of the Fifth Schedule of the Constitution of India, the Tribes Advisory Councils (TAC) shall be established in each State having Scheduled Areas therein and, if the President so directs, also in any State having Scheduled Tribes but not Scheduled Areas. The tribal advisory council is an advisory body, not a governing body. Option C is incorrect. Bringing any particular area under the Fifth Schedule of the Constitution of India does not convert the area into a Union Territory. Option D is incorrect. Bringing any particular area under the Fifth Schedule of the Constitution of India does not get declared as a Special Category State.
Indian Polity & Governance
Federal Structure & Centre State Relations
Constitutional & Statutory Bodies
With reference to India, consider the following:
I. The Inter-State Council
II. The National Security Council
III. Zonal Councils
How many of the above were established as per the provisions of the Constitution of India?
Explanation
Correct answer
A. Only one
Among the listed bodies, only the Inter-State Council is established by the Constitution of India. The others are based on statutory or executive provisions. ✅ I. Inter-State Council – Correct
* Established under Article 263 of the Constitution to facilitate Centre-State coordination. ❌ II. National Security Council – Incorrect
* Formed in 1998 by an executive order, not mentioned in the Constitution. ❌ III. Zonal Councils – Incorrect
* Established under the States Reorganisation Act, 1956, a statutory but non-constitutional body.
Indian Polity & Governance
Constitutional & Statutory Bodies
Federal Structure & Centre State Relations
Consider the following statements about Lokpal:
I. The power of Lokpal applies to public servants of India, but not to the Indian public servants posted outside India.
II. The Chairperson or a Member shall not be a Member of the Parliament or a Member of the Legislature of any State or Union Territory, and only the Chief Justice of India, whether incumbent or retired, has to be its Chairperson.
III. The Chairperson or a Member shall not be a person of less than forty-five years of age on the date of assuming office as the Chairperson or Member, as the case may be.
IV. Lokpal cannot inquire into the allegations of corruption against a sitting Prime Minister of India.
Which of the statements given above is/are correct?
Explanation
Correct answer
A. III only
❌ Statement I: Incorrect
Lokpal’s jurisdiction includes all Indian public servants, even those posted abroad. ❌ Statement II: Incorrect
Chairperson need not be only the CJI; former judges or eminent persons with 25+ years’ expertise can also be appointed. ✅ Statement III: Correct
Minimum age to be Chairperson or Member is 45 years. ❌ Statement IV: Incorrect
Lokpal can inquire against a sitting PM, but with safeguards and restrictions in sensitive areas. Therefore, only Statement III is correct.
Indian Polity & Governance
Constitutional & Statutory Bodies
With reference to the Government of India, consider the following information:
| Organization | Some of its Functions | It Works Under |
|--------------------|------------------------|--------------------------------|
| Directorate of Enforcement | Enforcement of the Fugitive Economic Offenders Act, 2018 | Internal Security Division-I, Ministry of Home Affairs |
| Directorate of Revenue Intelligence | Enforces the provisions of the Customs Act, 1962 | Department of Revenue, Ministry of Finance |
| Directorate General of Systems and Data Management | Carrying out big data analytics to assist tax officers for better policy and nabbing tax evaders | Department of Revenue, Ministry of Finance |
In how many of the above rows is the information correctly matched?
Explanation
Correct answer
B. Only two
The question relates to the correct mapping of key investigative and analytical bodies under the Government of India and their parent ministries or departments. ❌ Row I: Incorrect The Directorate of Enforcement does implement the Fugitive Economic Offenders Act, 2018, but it functions under the Department of Revenue, Ministry of Finance, not the Ministry of Home Affairs. ✅ Row II: Correct The Directorate of Revenue Intelligence (DRI) enforces the Customs Act, 1962 and works under the Department of Revenue, Ministry of Finance. ✅ Row III: Correct The Directorate General of Systems and Data Management aids in big data analytics for tax enforcement and operates under the Department of Revenue, Ministry of Finance.
Indian Polity & Governance
Indian Economy
Constitutional & Statutory Bodies
Public Finance & Taxation
How many Delimitation Commissions have been constituted by the Government of India till December 2023?
Explanation
Correct answer
D. Four
* Delimitation commissions have been set up four times in the past — 1953, 1962, 1972 and 2002 — under Delimitation Commission Acts of 1952, 1962, 1972 and 2002. * The Delimitation Commission is appointed by the President of India and works in collaboration with the Election Commission of India. The Delimitation Commission in India is a high-power body whose orders have the force of law and cannot be called into question before any court. * The Commission’s orders are laid before the Lok Sabha and the legislative assemblies concerned, but they cannot effect any modifications in the orders. * Composition: Retired Supreme Court Judge, Chief Election Commissioner and respective state election commissioners.
Indian Polity & Governance
Constitutional & Statutory Bodies
Parliamentary System & Procedures
Consider the following statements:
1. It is the Governor of the State who recognizes and declares any community of that State as a Scheduled Tribe.
2. A community declared as a Scheduled Tribe in a State need not be so in another State.
Which of the statements given above is/are correct?
Explanation
Correct answer
B. 2 only
Statement 1 is incorrect: The President of India, not the Governor of a State, has the power to specify a community as a Scheduled Tribe (ST) for a particular state or Union Territory. This is done through a notification in the Official Gazette, after consultation with the concerned State government. Statement 2 is correct: The specification of Scheduled Tribes is not uniform across the country. A community recognized as an ST in one State may not be recognized as such in another State. This is because the criteria for scheduling are based on social, educational, and economic backwardness, which can vary across regions.
Indian Polity & Governance
Constitutional & Statutory Bodies
Federal Structure & Centre State Relations
Who was the Provisional President of the Constituent Assembly before Dr. Rajendra Prasad took over?
Explanation
Correct answer
D. Dr. Sachchidananda Sinha
Dr. Sachchidananda Sinha was elected as the Provisional President of the Constituent Assembly on December 9, 1946. This was a temporary position. He served as the Chairman for two days, after which Dr. Rajendra Prasad was elected as the President of the Constituent Assembly on December 11, 1946. Here's why the other options are incorrect: * C. Rajagopalachari: He was the last Governor-General of India and played a significant role in the Indian independence movement. * Dr. B.R. Ambedkar: He was the Chairman of the Drafting Committee of the Constitution. * T.T. Krishnamachari: He was a prominent member of the Constituent Assembly and later served as the Finance Minister of India.
Indian Polity & Governance
History Of India
Constitutional & Statutory Bodies
Indian National Movement & Leadership
Consider the following statements
1. The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954.
2. The Food Safety and Standards Authority of India (FSSAI) is under the charge of Director General of Health Services in the Union Ministry of Health and Family Welfare.
Which of the statements given above is/are correct?
Explanation
Correct answer
A. 1 only
Statement 1 is Correct: The Food Safety and Standards Act, of 2006 did supersede the Prevention of Food Adulteration Act, of 1954. It established a more comprehensive framework for ensuring food safety and regulating the food industry in India. Statement 2 is Incorrect: The Food Safety and Standards Authority of India (FSSAI) is an autonomous body, not under the direct control of the Director General of Health Services. While the Ministry of Health and Family Welfare oversees FSSAI, it functions independently with its own governing board and chairperson. Therefore, the correct answer is option (a) 1 only.
Indian Polity & Governance
Constitutional & Statutory Bodies
In India, what is the role of the Coal Controller's Organization (CCO)?
1. CCO is the major source of Coal Statistics in Government of India.
2. It monitors progress of development of Captive Coal/Lignite blocks.
3. It hears any objection ' to the Government's notification relating to acquisition of coal-bearing areas.
4. It ensures that coal mining companies deliver the coal to end users in the prescribed time.
Select the correct answer using the code given below:
Explanation
Correct answer
A. 1, 2 and 3
The Coal Controller's Organisation (CCO) is a subordinate office of the Ministry of Coal, having its headquarters at Kolkata and field offices at Dhanbad, Ranchi, Bilaspur, Nagpur, Sambalpur, Kothagudem and Asansol. It collects and maintains coal production data of all private and public sector coal mines in the country. The information is collected every month. Statement 1 is correct. Under the Collection of Statistics Act, 2008 Coal Controller has been made the statistical authority concerning coal and lignite statistics. Entrusted with the responsibility of carrying out the Annual Coal & Lignite survey and publishing of Provisional Coal Statistics and Coal Directory of India. Statement 2 is correct. It is entrusted with the task of monitoring captive mines. Work such as permission for the opening and reopening of coal mines has been entrusted to the CCO. Statement 3 is correct. Under the Coal Bearing Area (Acquisition and Development) Act, 1957- the Coal Controller is the competent authority under this act to hear any objection to the Central Government's Notification relating to the acquisition of coal-bearing land and to furnish his reports to the Central Govt. Statement 4 is incorrect. Ensuring that coal mining companies deliver the coal to end users in the prescribed time is not the function of the Coal Controller's Organization (CCO).
Indian Economy
Indian Polity & Governance
Constitutional & Statutory Bodies
Executive & Council Of Ministers
Consider the following statements:
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest.
3. The Governor of the RBI draws his power from the RBI Act.
Which of the above statements are correct?
Explanation
Correct answer
C. 1 and 3 only
Statement 1 is correct. The Governor of RBI is appointed by the Central Government under the RBI Act, 1934. The Appointments Committee of the Cabinet (ACC), led by the Prime Minister, finalizes the selection. The tenure is typically four years, but the government has the authority to extend or terminate the term. Statement 2 is incorrect. The Constitution of India does not have any direct provision allowing the Central Government to issue directions to the RBI. However, Section 7 of the RBI Act, 1934, gives the Central Government the power to issue directions to the RBI in the public interest, but this is a statutory provision, not a constitutional one. Statement 3 is correct. The powers, functions, and responsibilities of the RBI Governor come from the Reserve Bank of India Act, 1934. The Act defines the Governor's role, monetary policy responsibilities, and overall authority over banking regulations.
Indian Economy
Indian Polity & Governance
Reserve Bank Of India & Monetary Policy
Constitutional & Statutory Bodies
Previous year Mains questions mapped to overlapping GS syllabus topics.
The National Commission for Protection of Child Rights has to address the challenges faced by children in the digital era. Examine the existing policies and suggest measures the Commission can initiate to tackle the issue.
Statutory, regulatory and quasi-judicial bodies
Government policies and interventions
Welfare schemes for vulnerable sections
View Mains PYQ
"In contemporary development models, decision-making and problem-solving responsibilities are not located close to the source of information and execution defeating the objectives of development." Critically evaluate.
Governance, transparency, accountability and e-governance
Government policies and interventions
Development processes, NGOs, SHGs and stakeholders
View Mains PYQ
What are environmental pressure groups? Discuss their role in raising awareness, influencing policies and advocating for environmental protection in India.
Executive, Judiciary and pressure groups
Development processes, NGOs, SHGs and stakeholders
Governance, transparency, accountability and e-governance
View Mains PYQ
Examine the evolving pattern of Centre-State financial relations in the context of planned development in India. How far have the recent reforms impacted the fiscal federalism in India?
Union and States — federal structure and devolution
Government policies and interventions
View Mains PYQ
Discuss the evolution of collegium system in India. Critically examine the advantages and disadvantages of the system of appointment of the Judges of the Supreme Court of India and that of the USA.
Indian Constitution — evolution, features, amendments, basic structure
Comparison of Indian constitutional scheme with other countries
Executive, Judiciary and pressure groups
View Mains PYQ
Indian Constitution has conferred the amending power on the ordinary legislative institutions with a few procedural hurdles. In view of this statement, examine the procedural and substantive limitations on the amending power of the Parliament to change the Constitution.
Indian Constitution — evolution, features, amendments, basic structure
Parliament and State legislatures
View Mains PYQ
The Enforcement Directorate (ED) recently provisionally attached assets under the Prevention of Money Laundering Act (PMLA). Which of the following statements about PMLA is/are correct? 1. It was enacted to combat money laundering and confiscate property derived from or involved in money laundering. 2. The Enforcement Directorate (ED) is the primary agency responsible for enforcing PMLA. 3. Provisional attachment of property under PMLA can be done for a period of 180 days.
Explanation
Statement 1 is correct: PMLA's main objective is to prevent money laundering and provide for confiscation of property derived from or involved in money laundering. Statement 2 is correct: The ED is indeed the primary agency responsible for investigating and prosecuting offenses under PMLA. Statement 3 is correct: Under Section 5(1) of PMLA, the Director or any other officer not below the rank of Deputy Director authorized by the Director can provisionally attach property for a period not exceeding 180 days.
The Enforcement Directorate (ED), a central agency, was mentioned in the context of a money laundering probe. Which of the following best describes the nature of the Enforcement Directorate?
Explanation
The Enforcement Directorate (ED) is a multi-disciplinary organization mandated to investigate offenses of money laundering and violations of foreign exchange laws. It was formed in 1956 and functions under the Department of Revenue, Ministry of Finance. It derives its powers primarily from the Prevention of Money Laundering Act (PMLA), 2002, and the Foreign Exchange Management Act (FEMA), 1999, making it a statutory body. It is not a constitutional body, nor does it function solely under the Ministry of Home Affairs, and while it exercises quasi-judicial powers, its establishment is statutory, not merely by executive order.
In the context of the recent case against a retired IPS officer, the Assam Anti-Corruption and Vigilance Bureau filed an FIR alleging disproportionate assets. Which of the following statements regarding such cases is generally correct? 1. Disproportionate assets cases typically involve public servants acquiring wealth beyond their known and legitimate sources of income. 2. The Prevention of Money Laundering Act (PMLA) is exclusively used for cases involving international financial transactions. 3. State Anti-Corruption Bureaus are empowered to investigate corruption cases against state government officials.
Explanation
Statement 1 is correct: Disproportionate assets refer to wealth accumulated by a public servant that cannot be accounted for by their known and legitimate sources of income. Statement 2 is incorrect: PMLA is applicable to both domestic and international money laundering activities, not exclusively international transactions. Statement 3 is correct: As seen in the article, the Assam Anti-Corruption and Vigilance Bureau (a state agency) filed the FIR, indicating their power to investigate corruption cases against state government officials.
The Enforcement Directorate (ED) plays a crucial role in combating financial crimes like money laundering. Discuss the powers and functions of the ED under the Prevention of Money Laundering Act (PMLA) and critically evaluate its effectiveness in promoting transparency and accountability in governance.
Introduce ED and PMLA, detail ED's powers (investigation, attachment, arrest, prosecution, survey, search), discuss its effectiveness in curbing financial crime and promoting accountability, and critically analyze challenges (e.g., conviction rates, alleged misuse, procedural delays) and suggest measures for improvement.
The case of a retired IPS officer accumulating disproportionate assets highlights the persistent challenge of corruption within the civil services. Examine the ethical dilemmas faced by public servants and suggest measures to strengthen probity and integrity in public administration.
Define corruption and disproportionate assets in the context of civil services. Discuss ethical dilemmas such as conflict of interest, temptation of power/wealth, and pressure from superiors/politicians. Suggest measures like strengthening vigilance mechanisms, promoting transparency, implementing robust ethical codes, protecting whistle-blowers, ensuring timely asset declarations, and fostering a culture of integrity.