Finance Minister P Chidambaram today cautioned the Enforcement Directorate not to hurt legitimate investments while probing money laundering cases, and to focus on the ones that are important.
"We must remember that economic activity must not be hindered by mindless investigation and prosecutions... All legitimate trading and investment activity must be fully respected and protected even while we investigate crimes involving money and laundering of money," he said while addressing officials of Enforcement Directorate (ED).
He further said caution was necessary in deciding which cases to prosecute under the money laundering law. "Otherwise, we will be overwhelmed with cases that we would be required to prosecute," he said.
The ED, which probes cases involving foreign exchange violation and laundering of money, is investigating alleged violation of FEMA regulation by cash and carry chain Bharti-Walmart, money laundering by Saradha Group and other high profile cases.
"What drives the economy is trade and investments, especially foreign trade. Investments can flow both ways... We must facilitate foreign trade. We must facilitate investments," Chidambaram said.
Stating that money laundering was behind crimes like human and drug trafficking and terror financing, the Minister called for greater international cooperation to deal with the menace.
"It is important that agencies across the world cooperate, share technology, share information and chase the offenders," Chidambaram said.
