Enforcement Directorate steps up drive to check Covid-linked corruption

Corrupt practices including hoarding, profiteering and black marketing of Covid-related essentials can now attract strict punishment under the anti-money laundering laws.

The Enforcement Directorate (ED) has directed  officials to consider cases of crime related to Covid-19 as predicate offence. Officials have been told to step up the drive against entities indulging in activities such as hoarding and overcharging of essential life saving drugs including Remdesevir injections. Issuing fake RT PCR certificates and charging exorbitant prices for hospital beds/ICU/ventilator too would be treated as an offence under the anti-money laundering provisions.

Bulk promotions claiming availability of Covid treatment, duping people on the pretext of providing oxygen cylinder, ambulance service at a premium cost etc must be immediately dealt with through provisions of the Prevention of Money Laundering Act (PMLA), the agency said in an internal note reviewed by Business Standard.  

The enforcement agency added that during the second wave, it has experienced that money laundering activities pertaining to Covid-19 related offences are on the rise within the country and internationally. Some first information reports (FIRs) filed with the police have been examined by enforcement sleuths and taken up under the PMLA.

“It has been noticed that the worst form of Covid- related crimes have been committed by  unscrupulous elements during the second wave, turning disaster into an opportunity resulting in unprecedented misery to human life. Incidents of exploitation, cheating and extortion of varied kinds have been committed against people who were in dire need of medical help,” according to the note. It added that an action report would be submitted by all zones (across the country) by June 30.

Sources said the move followed a government constituted-committee suggesting extension of ED jurisdiction to Covid-related offences.

The agency also asked officials to take appropriate action if not taken yet. They have been told to make use of database to address the complaints. Help from local police and other agencies can be sought for this before registering  cases.

According to the agency, Covid-related crime intensified during the second wave. During the first wave, there were cases mainly related to low-quality or duplicate hand sanitiser, mask and PPP kits. Hoarding, profiteering, adulteration, and black marketing of items such as medicines medical equipment, oxygen cylinder, hospital beds have been noticed at a massive scale during the second wave. 

In April and May, such cases have risen in several states. Close to 100 arrests have also been made. Delhi police alone has registered more than 70 cases in the matter. Last month,  the Delhi High Court had asked the government to take measures to prevent black-marketing of Covid-related items.