Strengthening Financial Integrity and Combating Economic Crime
It is with a deep sense of responsibility and pride that I present an overview of the work and achievements of the Directorate of Enforcement (ED) for the Financial Year 2025–26. Over the years, the Directorate has evolved into a premier financial investigation agency, entrusted with enforcing key legislations such as the Prevention of Money Laundering Act (PMLA), the Fugitive Economic Offenders Act (FEOA), and the Foreign Exchange Management Act (FEMA). Its mandate extends beyond tackling illicit financial flows to addressing broader threats to financial integrity and national security.
The landscape of financial crime has undergone a significant transformation. While earlier investigations largely focused on bank frauds, corporate scams, and real estate irregularities, recent years have witnessed a decline in such offences, supported by sustained enforcement actions and systemic reforms such as the Insolvency and Bankruptcy Code (IBC) and the Real Estate (Regulation and Development) Act (RERA). At the same time, emerging threats such as cryptocurrency frauds, cyber-enabled financial crimes, terrorism financing, anti-national activities, and narcotics trafficking have gained prominence, necessitating a more agile and technology-driven enforcement response.
Recognizing these evolving challenges, the Directorate has adopted a forward-looking, intelligence-led approach. Particular emphasis has been placed on disrupting financial networks linked to narcotics trafficking, in alignment with national priorities to combat the drug menace. There has also been a notable increase in investigations relating to terror financing and espionage, reflecting the Directorate’s expanding role in safeguarding national interests.
Despite the inherent complexities of money laundering investigations—often involving cross-border transactions, layered financial structures, and rapidly evolving technologies—the Directorate has significantly strengthened its enforcement outcomes. During FY 2025–26, 657 main prosecution complaints were filed under the PMLA, nearly doubling the figure of the previous year, along with 155 supplementary complaints. Notably, over 41% of all prosecution complaints filed to date have been initiated in the last two years, indicating a marked acceleration in investigative and prosecutorial efforts.
With a conviction rate of approximately 94% in concluded cases, the Directorate continues to demonstrate strong legal outcomes. Beyond prosecution, a central objective remains the identification, attachment, and confiscation of proceeds of crime. Enforcement trends reflect a substantial escalation, with attachments in FY 2025–26 reaching ₹81,422.63 crore—far exceeding the cumulative figures of earlier years.
Equally significant is the Directorate’s focus on restitution. Through strengthened legal provisions and a victim-centric approach, meaningful progress has been made in returning assets to rightful claimants. As of 31 March 2026, properties worth ₹65,872.72 crore have been deprived from offenders, with over ₹63,142 crore restituted. Landmark interventions have ensured tangible relief to homebuyers, investors, and financial institutions.
Recognizing the transnational nature of financial crimes, international cooperation continues to be a cornerstone of our strategy. Active engagement with global partners, leadership roles in asset recovery networks, and participation in international forums reflect India’s growing contribution to global anti-money laundering efforts.
At the domestic level, coordinated action with agencies such as the Central Bureau of Investigation (CBI) has strengthened enforcement against serious economic offenders. Proceedings under the FEOA have led to significant outcomes, reinforcing the principle that economic offenders cannot evade the reach of the law.
Institutional strengthening has remained a priority, with enhanced transparency measures, adoption of technology-driven processes, and issuance of comprehensive operational frameworks. Investments in training, infrastructure, and advanced forensic capabilities have further augmented the Directorate’s capacity to respond effectively to emerging threats.
The progress achieved is a testament to the dedication, integrity, and professionalism of the officers and staff of the Directorate of Enforcement. The organisation remains committed to evolving in line with global best practices and addressing emerging challenges with resolve, while upholding the rule of law and safeguarding the nation’s financial integrity.
Jai Hind!
Written by : Rahul Navin, IRS, Director of Enforcement
