Jaitley asks ED to use penal powers 'expeditiously'

New Delhi: Union Finance Minister Arun Jaitley today advocated expeditious use of penalising power by the Enforcement Directorate to deal with any non-compliance of the laid-down rules.

Speaking at the Enforcement Directorate Day, he said the interest of the larger public takes a hit when people indulge in non-compliance and hence, the revenue department and the ED have a key role to play to catch offenders.

The government, the finance minister stressed, trusts its citizens and allows them to deal in foreign exchange. "There is an expectation of compliance and in the event of non-compliance, there is this power of penalising that the ED has. This power has to be expeditiously used whenever violations are detected," Jaitley said.

He expressed hope that the enforcement agency will strictly implement law and help the exchequer raise legitimate revenue.

Earlier, at the same function, Revenue Secretary Hasmukh Adhia said as many as 8-9 lakh registered companies are not filing annual returns with the Ministry of Corporate Affairs (MCA) and pose as a potential source of money laundering.

The task force set up by the PMO is monitoring these companies every 15 days, Adhia added.

"There are 15 lakh registered companies... as many as 8-9 lakh are not filing annual returns with the corporate affairs ministry. They have become a potential threat for money laundering," the secretary said.