Enforcement Directorate(ED) has decided to expand the scope of investigation by reviewing all loans sanctioned during former ICICI MD Chanda kochhar’s tenure.
ED had registered the case against Chanda Kochhar under financial provisions of the Prevention of Money Laundering Act (PMLA).They are investigating whether she made any personal gains by alleged irregularities in release of loans sanctioned by ICICI bank to Videocon in 2012.
Money laundering is the process by which large amounts of illegally received money is given the appearance of having originated from a legitimate source.
The Prevention of money Laundering Act 2002(PMLA) came into force in 2005.It defines money laundering offence and provides for the freezing, seizures and confiscation of the proceeds of crime.The provisions of this act are applicable to all financial institutions like banks, mutual funds, insurance companies, and their financial intermediaries.The act was amended thrice, first in 2005, then in 2009 and 2012. PMLA(Amendment) Act, 2012 has enlarged the definition of money laundering by including activities such as concealment, acquisition, possession and use of proceeds of crime as criminal activities.
ED is a law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India.It is part of the Department of Revenue,Ministry of Finance.
The prime objective of the Enforcement Directorate is the enforcement of two key Acts- (a)Foreign Exchange Management Act 1999 (FEMA) and (b)Prevention of Money Laundering Act 2002 (PMLA).Other objectives are primarily linked to checking money laundering in India