UPSC Prelims Practice Questions — Mamata govt., ED spar in SC over I-PAC raids

Q1. The Enforcement Directorate's action against I-PAC's head in Kolkata in January 2026 was a 'search and seizure' operation authorised under which one of the following statutory provisions?

  • A. Section 17 of the Prevention of Money Laundering Act, 2002
  • B. Section 37 of the Foreign Exchange Management Act, 1999
  • C. Section 132 of the Income-tax Act, 1961
  • D. Section 41 of the Code of Criminal Procedure, 1973

Q2. Within the Government of India, the Directorate of Enforcement — which conducted the I-PAC raids in January 2026 — functions under the administrative control of which one of the following?

  • A. Department of Revenue, Ministry of Finance
  • B. Department of Financial Services, Ministry of Finance
  • C. Internal Security Division, Ministry of Home Affairs
  • D. Department of Personnel and Training, Ministry of Personnel, Public Grievances and Pensions

Q3. In the context of the ED's January 2026 PMLA search at I-PAC's office, the term 'proceeds of crime' under the Prevention of Money Laundering Act, 2002 is best defined as:

  • A. Any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence, or the value of any such property
  • B. Any property whose source of acquisition cannot be satisfactorily explained by an assessee under the Income-tax Act, 1961
  • C. Any movable property seized by a police officer in the course of a search authorised by a Judicial Magistrate of the First Class
  • D. Any foreign currency held by a resident in contravention of the Foreign Exchange Management Act, 1999

Q4. With reference to a comparison between the Directorate of Enforcement (ED) — which is in the Supreme Court over the I-PAC raids — and the Central Bureau of Investigation (CBI), consider the following statements: 1. Unlike the CBI, which requires the general consent of a State Government to investigate offences within that State, the ED can conduct PMLA searches across India without such consent. 2. While the CBI derives its core investigative powers from the Delhi Special Police Establishment Act, 1946, the ED's core search-and-seizure powers flow from the PMLA, 2002 and FEMA, 1999. 3. Both the CBI and the ED function under the administrative control of the Department of Personnel and Training, Ministry of Personnel, Public Grievances and Pensions. Which of the statements given above is/are correct?

  1. Unlike the CBI, which requires the general consent of a State Government to investigate offences within that State, the ED can conduct PMLA searches across India without such consent.
  2. While the CBI derives its core investigative powers from the Delhi Special Police Establishment Act, 1946, the ED's core search-and-seizure powers flow from the PMLA, 2002 and FEMA, 1999.
  3. Both the CBI and the ED function under the administrative control of the Department of Personnel and Training, Ministry of Personnel, Public Grievances and Pensions.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3