ED to expand PMLA, FEMA zones by 2027; cuts investigation time

The Enforcement Directorate will expand its structure to 50 PMLA and five FEMA Zones by 2027. The move, part of a cadre restructuring, will increase staff strength by 60% and aims to reduce investigation timelines from 4-5 years to 1.5 years.

The Enforcement Directorate (ED) will expand its field structure to 50 PMLA Zones and five dedicated FEMA Zones from January 1, 2027, as part of its newly approved cadre restructuring, while setting a target to reduce the lifecycle of investigations from the current four to five years to around one-and-a-half years.

The 50 PMLA zones will handle cases related to money laundering under the Prevention of Money Laundering Act, while the five dedicated FEMA Zones will focus on foreign exchange violations under the Foreign Exchange Management Act (FEMA). The restructuring will increase the Directorate's sanctioned strength from 2,029 to 3,256 posts, a rise of around 60 per cent, and expand the number of functional units from 131 to 241. The five dedicated FEMA Zones will be established in Delhi, Chandigarh, Mumbai, Kolkata and Chennai, while the expanded PMLA network will strengthen the Directorate's field presence and investigation capacity across the country.

The roadmap for the restructuring and the reduction in investigation timelines was discussed at the ED's 36th Quarterly Conference of Zonal Officers, held in Bengaluru on September 14-15. The conference was chaired by ED Director Rahul Navin and attended by senior officers from the headquarters and field formations.

ED Restructuring and Infrastructure Roadmap

"The first working session dealt with implementation of the approved cadre restructuring and the related infrastructure roadmap. The restructuring raises the sanctioned strength of the Directorate from 2,029 to 3,256 posts, expands the field structure to fifty PMLA Zones along with five dedicated FEMA Zones at Delhi, Chandigarh, Mumbai, Kolkata and Chennai, and increases the number of functional units from 131 to 241, with rollout targeted from January 1, 2027. The objective is to compress the lifecycle of investigations from the present four to five years to about one and a half years," said the ED after conclusion of the event.

On infrastructure, the session set the goal of owned office premises across all thirty-nine cities in the Directorate’s footprint by 31st March, 2029 under the ‘Project Pravartan Bhavan’, and reviewed the status of land acquisition and construction across several locations, along with deployment of security cover at the remaining offices.

Technological and Intelligence Overhaul

The conference reviewed the use of NATGRID, the Inter-operable Criminal Justice System, corporate and immigration databases, virtual digital asset transaction records and analytical inputs from the Financial Intelligence Unit-India.

The Directorate also reviewed plans to augment its cyber-forensic capabilities through advanced forensic tools and field acquisition kits, besides expanding its arrangement with the National Forensic Sciences University for deployment of experts at regional laboratories.

Directives from ED Director Rahul Navin

As part of the drive to expedite enforcement action, ED Director Rahul Navin called for "quick and decisive decision-making" and cautioned against over-deliberation that could delay searches and other enforcement measures. He also directed all zonal heads to conduct formal cascade briefings in their respective zones down to the level of Assistant Enforcement Officers and to record the proceedings.

On technology, ED Director cautioned that even offline deployments of Artificial Intelligence carry risks of data leakage and that confidential case material must be handled with the utmost care, while underlining the shift in intelligence culture from a ‘need to know’ basis to a ‘duty to share’ among law enforcement agencies.

He further directed that the achievements of the Directorate, including action in bank frauds, builder-buyer frauds, insolvency-related frauds and cybercrime, be projected through regular press releases and media engagement, and reaffirmed an uncompromising policy of zero tolerance towards corruption within the organisation.

He also emphasised the usefulness of general management principles in the day-to-day working of the Directorate, and called upon every officer and member of staff to update themselves on new developments in the areas of criminal investigation, legal principles, international practices and management principles, including through the use of social media and artificial intelligence tools.

Core Operational Thrust Areas

The ED Director identified the core operational thrust areas for the zones that included unearthing frauds under the Insolvency and Bankruptcy Code and the PMLA, including re-examination of collusive resolution cases involving disproportionately large haircuts through which promoters re-acquire assets; closer coordination with the State Police and other law enforcement agencies, including recourse to the attachment and bail provisions of the PMLA against organised criminal elements; fast-tracking of trials, with identification of at least ten high-profile cases in each region for conclusion of trial and conviction within six to eight months; aggressive pursuit of restitution of attached and confiscated assets to legitimate victims; and mandatory valuation of all confirmed attached properties by government-approved valuers, with geo-tagging, within six months, along with the taking of constructive possession.

Fast-Tracking High-Profile Cases

The Directorate has also set a target of identifying at least 10 high-profile PMLA cases in each region for conclusion of trial and "conviction within six to eight months."

The ED said restitution of attached and confiscated assets has crossed Rs 73,800 crore across 76 cases. The agency directed its zones to pursue restoration of assets to legitimate victims without necessarily waiting for the framing of charges.

The conference further directed zones to strengthen coordination with State Police and other law enforcement agencies, including CBI, Customs, DRI, NCB and SEBI, for faster flow of information and coordinated action.

Strengthening Prosecution and Trial Processes

On the prosecution front, the ED approved a structured monitoring mechanism, including a live trial pendency dashboard and an adjournment and delay-attribution register, while cases pending for more than 10 years will be placed in a dedicated monitoring register for monthly review.

The Directorate also set a target for mandatory valuation and geo-tagging of all confirmed attached properties by government-approved valuers within six months, along with constructive possession.

The conference concluded with a roadmap focused on implementing the expanded organisational structure, accelerating investigations and trials, strengthening technological capabilities and ensuring faster restitution of assets to victims of economic crimes.

Zones were also directed to tighten pre-trial discipline through curated lists of relied-upon documents and witnesses, a calendar of evidence accompanying every prosecution complaint, prompt electronic and substituted service, and monthly review of cases awaiting cognisance beyond six months. Measures to counter dilatory defence tactics, and a graded sequence of coercive steps against evading and absconding accused culminating in trial in absentia, were also settled.

Addressing Emerging Cryptocurrency Threats

The conference also reviewed emerging threats involving cryptocurrencies, including decentralised finance, stablecoins, hawala networks, chain-hopping, cross-chain bridges, mixers, tumblers and privacy coins.

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