ED: In the Chhattisgarh coal levy scam, the seizes assets valued at Rs 2.66 crore
The ED’s Raipur Zonal Office announced on Monday that it has issued a Provisional Attachment Order (PAO) under the Prevention of Money Laundering Act (PMLA), 2002, to seize eight real estate properties valued at about Rs 2.66 crore.
According to the ED, the accused Saumya Chaurasia and Nikhil Chandrakar allegedly used the proceeds of crime from illegal coal levy collection and extortion activities in Chhattisgarh to purchase these assets, which include residential apartments and land parcels, in the names of their relatives.
The ED’s move is the result of many ongoing investigations connected to the well-known coal levy fraud. An FIR filed by Bengaluru Police served as the basis for the investigation. The Income Tax Department filed a prosecution case on June 19, 2023, and the Economic Offences Wing (EOW)/Anti-Corruption Bureau (ACB), Raipur, filed another FIR on January 11, 2024.
According to investigations, between July 2020 and June 2022, a gang of private citizens ran an extortion scheme in cooperation with high-ranking state officials and bureaucrats.
The group reportedly made almost Rs 540 crore in illicit taxes during this time, earning Rs 25 for each tonne of coal moved. The extorted money, which is categorized as Proceeds of Crime (POC), was used to buy both immovable and moveable properties, pay election-related costs, and bribe politicians and authorities.
The scheme revolves on Chhattisgarh’s coal transportation industry. As of right now, the ED has located and seized assets valued at Rs 273 crore that belong to many of the defendants in this case.
Additionally, the agency has filed five prosecution complaints against 35 accused before the Special Court (PMLA) and arrested 11 people thus far.
This most recent attachment highlights the exploitation of family members to hide illegal income and targets “benami” purchases connected to important individuals Saumya Chaurasia (former deputy secretary in the Chhattisgarh CMO) and Nikhil Chandrakar.
The ED is still following the money trail and looking for other assets as part of the ongoing investigation. Over the years, several authorities have been involved in the coal tax scam, which has been a major political and investigative focus in Chhattisgarh and resulted in numerous arrests and asset seizures.