ED Takes Major Action Against Illegal Coal Mining in West Bengal

In Kolkata, the Enforcement Directorate (ED) has launched a significant operation amid the assembly elections in West Bengal. The agency has temporarily seized assets worth ₹159.51 crores under the Prevention of Money Laundering Act (PMLA), 2002, as part of an ongoing investigation into large-scale illegal coal mining and theft in areas leased by Eastern Coalfields Limited (ECL). The investigation revealed that the illegal mining activities were orchestrated by a syndicate led by Anup Majhi, also known as Lala. Several beneficiary companies in West Bengal were found to be knowingly purchasing illegally extracted coal for cash, aiding in concealing the proceeds of crime and presenting them as legitimate income.

The seized assets include investments in financial instruments such as corporate bonds and alternative investment funds, held in the names of beneficiary entities like Shyam Steel and Power Limited and Shyam Ferro Alloys Limited. These companies are part of the Shyam Group, managed by Sanjay Agarwal and Brij Bhushan Agarwal. Further investigations confirmed the syndicate's involvement in illegal excavation and extensive coal theft.

They supplied the stolen coal to various factories in West Bengal with the active collusion of local administrative elements. A key method employed by them was an illegal transportation invoice system known as 'Lala Pad.' This system functioned as a fake tax invoice issued in the names of non-existent entities.

Along with the fake transport invoices, transporters were given a ₹10 or ₹20 note. The transporter would place this note next to the license plate of trucks, dumpers, or tippers carrying illegal coal, take a photo, and send it to the coal syndicate operator.

The operator would then forward this image via WhatsApp to the relevant police and government officials along the vehicle's route, ensuring that the truck would not be stopped. If it was halted, it would be released immediately. The investigation also uncovered that a clandestine 'hawala' network was used to transfer money earned from crime in cash, bypassing formal banking channels. Specific identifiers, usually the serial number of the note, were utilized to authenticate these transactions, shared between the sender and receiver.

Once the notes matched, cash was handed over without any formal documentation, allowing for a seamless transfer of funds without leaving a trace. With this latest asset attachment, the total value of seized properties in this case has risen to ₹482.22 crores, involving multiple layers of complex financial transactions designed to obscure the sources and ownership of illegally acquired funds.