Enforcement – ED Reports Fewer Arrests but Record Asset Seizures in FY26
Enforcement – India’s Enforcement Directorate reported a decline in arrests but a sharp rise in asset attachments and faster case resolution during the 2025–26 financial year.
The Enforcement Directorate (ED) recorded a noticeable drop in arrests linked to money laundering cases in the financial year ending March 31, 2026. However, official figures show that the agency simultaneously achieved its highest-ever value of assets attached, highlighting a shift in investigative strategy and enforcement focus.
Decline in Arrests Amid Strategic Shift
According to the agency’s annual report, the ED arrested 156 individuals during FY26, down from 214 in the previous financial year and 272 in FY24. This marks a reduction of roughly 27 percent compared to FY25. Officials attributed the fall in arrests to a more focused approach, emphasizing evidence-based investigations rather than volume-driven action.
The agency operates under the Prevention of Money Laundering Act (PMLA), which grants wide-ranging authority, including arrest, search, seizure, and attachment of properties suspected to be linked with proceeds of crime. Bail provisions under the law remain stringent, requiring courts to be satisfied of the accused’s innocence before granting relief.
Surge in Asset Attachments Reaches Record High
While arrests declined, the value of assets provisionally attached by the ED surged dramatically. During FY26, the agency issued 712 attachment orders, covering assets worth ₹81,422 crore. This represents a significant increase of over 170 percent compared to ₹30,036 crore attached through 461 orders in the previous year.
Officials described asset attachment as a key enforcement tool designed to prevent individuals from benefiting from illicit financial gains. These provisional orders are later reviewed and confirmed by the adjudicating authority under the PMLA framework.
Raids and Investigations See Sharp Increase
The number of search operations carried out by the ED rose sharply during the same period. The agency conducted 2,892 searches in FY26, nearly double the 1,491 operations recorded in FY25. These raids, often widely covered in media reports, form a critical component of ongoing investigations.
At the same time, the ED registered 1,080 Enforcement Case Information Reports (ECIRs), marking a 39 percent increase from the previous year’s 775 cases. This rise reflects a broader expansion in investigative activity across sectors.
Faster Case Resolution and More Chargesheets
The ED also reported a substantial increase in prosecution efforts. It filed 812 prosecution complaints during FY26, compared to 457 in FY25. This rise indicates improved efficiency in completing investigations and presenting cases before courts.
Officials noted that the average lifecycle of cases has been reduced significantly, from around three to four years earlier to approximately one to one-and-a-half years now. The agency credited this improvement to the use of advanced data analysis, including real-time access to financial records and blockchain-based tracking of cryptocurrency transactions.
Significant Progress in Asset Restitution
One of the key highlights of the report was the restoration of assets to victims of financial fraud. The ED returned properties worth ₹32,678 crore during FY26, more than double the ₹15,263 crore restored in the previous year.
This achievement also exceeded the agency’s initial target of ₹15,000 crore set at the beginning of the financial year. A major contribution came from the PACL ponzi scheme case, where assets worth ₹15,582 crore were restored, accounting for nearly half of the total restitution.
The beneficiaries of such actions include investors, homebuyers, and financial institutions affected by fraudulent schemes.
Growing International Cooperation in Investigations
The report also highlighted increased cross-border cooperation in tackling financial crimes. As of March 31, 2026, the ED had 353 pending requests under mechanisms such as Mutual Legal Assistance Treaties (MLATs) and Letters Rogatory (LR).
The highest number of pending requests were with the United Arab Emirates, followed by Singapore, the United Kingdom, Hong Kong, the United States, Switzerland, and Mauritius. In addition, the ED received 246 cooperation requests from foreign jurisdictions, with the UK contributing the largest share.
Technology-Driven Approach Reshaping Enforcement
Officials emphasized that the agency is no longer relying solely on traditional search operations. Investigators are increasingly integrating financial intelligence from multiple databases, enabling more precise tracking of transactions and assets.
This technology-driven approach has allowed the ED to strengthen its enforcement capabilities while reducing dependency on large-scale arrests, signaling a shift toward targeted and data-backed investigations.