With reference to the Government of India, consider the following information:
In how many of the above rows is the information correctly matched? Organization — Some of its functions — It works under; Directorate of Enforcement — Enforcement of the Fugitive Economic Offenders Act, 2018 — Internal Security Division-I,
Ministry of Home Affairs; Directorate of Revenue Intelligence — Enforces the Provisions of the Customs Act, 1962 — Department of Revenue, Ministry of Finance; Directorate General of Systems |and Data Management — Carrying out big data analytics to assist tax officers for better policy and nabbing tax evaders — Department has identified.
of Revenue, Ministry of Finance

Correct Answer:

(b) Only two

Explanation of the Correct Answer:

Let us examine each row carefully:

1. Directorate of Enforcement (ED)
   • Function: Enforcement of the Fugitive Economic Offenders Act, 2018 – Correct.
   • Administrative control: Shown as Internal Security Division-I, Ministry of Home Affairs – Incorrect.
   • The Enforcement Directorate works under the Department of Revenue, Ministry of Finance, not under the Ministry of Home Affairs.
2. Directorate of Revenue Intelligence (DRI)
   • Function: Enforces provisions of the Customs Act, 1962 – Correct.
   • Administrative control: Department of Revenue, Ministry of Finance – Correct.
   • This row is fully correct.
3. Directorate General of Systems and Data Management (DGSDM)
   • Function: Big data analytics to assist tax officers and detect tax evasion – Correct.
   • Administrative control: Department of Revenue, Ministry of Finance – Correct.
   • DGSDM functions under CBIC (Central Board of Indirect Taxes and Customs), which itself is under the Department of Revenue.

Hence, Rows 2 and 3 are correctly matched.

Why Other Options Are Incorrect

Relevant Supplementary Information

Table: Key Economic Enforcement Agencies of Government of India

Context and Current Relevance

• ED’s role has expanded due to increased enforcement of Prevention of Money Laundering Act (PMLA) and Fugitive Economic Offenders Act.
• DRI remains central to tackling cross-border smuggling and customs fraud.
• DG Systems is critical for GST analytics, faceless assessment, and AI-driven tax compliance.

Key Takeaways from the Table

• Most economic enforcement bodies operate under the Department of Revenue, Ministry of Finance.
• ED is not under MHA, despite its law-enforcement role.
• Data and analytics wings (DG Systems) are increasingly important for modern tax administration.
• UPSC often tests administrative control vs functional role—both must be checked carefully.

• Economic and financial enforcement agencies mostly fall under the Department of Revenue, Ministry of Finance.
• Law-and-order or national security agencies (NIA, IB) fall under Ministry of Home Affairs.
• ED is commonly confused as an MHA body—but it is firmly under Ministry of Finance.
• Data & analytics wings (DG Systems) reflect the shift toward technology-driven governance.
• In UPSC questions, always separately verify “function” and “administrative control”—errors are often planted there.

Table: Key Enforcement, Intelligence, and Data Agencies under Government of India