Coal – ED Attaches Rs 159 Crore Assets in Illegal Mining Probe
Coal – The Enforcement Directorate has provisionally attached assets worth Rs 159.51 crore as part of its ongoing investigation into alleged illegal coal mining and diversion activities linked to Eastern Coalfields Limited (ECL).
Probe Expands Into Financial Links
According to an official statement released on Wednesday, the action has been carried out under the Prevention of Money Laundering Act (PMLA), 2002. Investigators have been examining a wide network suspected of extracting and distributing coal illegally from leasehold areas operated by ECL.
Authorities say the case has revealed a structured system in which illicitly mined coal was introduced into the supply chain and sold to industrial buyers. The operation is believed to involve multiple intermediaries and financial channels designed to conceal the origins of the material.
Syndicate Allegedly Led by Key Figure
The investigation points to a syndicate reportedly headed by Anup Majee, also known as “Lala.” Officials allege that this network coordinated illegal excavation and organized the movement of coal across various locations in West Bengal.
The Enforcement Directorate has indicated that certain companies knowingly purchased coal sourced through illegal means. These transactions were often conducted in cash, which investigators believe helped disguise the proceeds as legitimate business income.
Corporate Entities Under Scanner
Among the assets attached are investments in financial instruments such as corporate bonds and alternative investment funds. These holdings are linked to entities including Shyam Sel and Power Limited and Shyam Ferro Alloys Limited.
Both companies are part of the Shyam Group, which is reportedly managed by Sanjay Agarwal and Brij Bhushan Agarwal. Authorities suspect that funds generated from illegal coal operations were routed into these investments to obscure their origin.
Method Used to Avoid Detection
Investigators have identified a distinctive system used by the syndicate to transport coal without raising suspicion. A fake documentation method, referred to as the “Lala pad,” was allegedly used as a substitute for legitimate tax invoices. These documents were issued in the names of non-existent firms.
In addition, transporters were reportedly given small denomination currency notes along with the forged documents. Drivers would photograph these notes alongside their vehicle number plates and share the images with operators.
These photographs were then circulated via messaging platforms to certain officials along transit routes. This process is believed to have ensured that vehicles carrying illegal coal were either not stopped or quickly cleared during inspections.
Hawala Network and Cash Movement
The Enforcement Directorate has also uncovered the use of an underground hawala system to transfer funds linked to the illegal operations. This method allowed cash to be moved without passing through formal banking systems.
Transactions were verified using unique identifiers, often the serial numbers of currency notes shared between sender and receiver. This approach enabled the transfer of large sums without documentation, making it difficult to trace financial trails.
Total Attachments Rise Significantly
With the latest action, the total value of assets attached in this case has reached Rs 482.22 crore. Officials describe the financial structure involved as complex, with multiple layers of transactions designed to hide ownership and source of funds.
The agency has stated that further investigation is underway to identify additional beneficiaries and track the full extent of proceeds generated through illegal mining activities. Authorities are also examining the roles of individuals and entities suspected to be part of the laundering network.