Bhubaneswar: The Enforcement Directorate (ED) seized Rs 2.63 crore cash and several benami vehicles during simultaneous searches at over 25 locations in Odisha’s Ganjam district as part of an ongoing probe into illegal mining and related money laundering activities.
The raids were conducted by ED’s Bhubaneswar Zonal Office on January 16 under the provisions of the Prevention of Money Laundering Act (PMLA), according to the central probe agency.
The raids were carried out on properties linked to people allegedly involved in illegal sand and black stone mining, country liquor (Bhati) operations, contractors, brokers, and other associated business partners. Over 175 officials from six states took part in the operation.
The searches covered the premises of syndicates accused of forcibly conducting illegal mining of minor minerals by using muscle power and terrorising local people. These syndicates are suspected to be involved in the illegal extraction and transportation of sand and black stone within Ganjam and to other districts and states.
he investigation was initiated after multiple FIRs were registered against members of these syndicates for illegal mining and transportation using forged and fabricated Y Forms, which are transit permits.
Probe by the ED was also based on reports of the Comptroller and Auditor General (CAG), which flagged rampant illegal mining along the riverbeds of Rushikulya, Bahuda and Bada rivers in Ganjam district. The illegal activities allegedly caused huge losses to the government exchequer.
Several members of the syndicates reportedly have serious criminal cases registered against them, including charges of murder, kidnapping, physical assault, forgery, cheating and extortion.
Probe by the agency showed that mining leases issued in the names of genuine leaseholders were unlawfully and forcibly taken over by syndicate members. This was allegedly done under the guise of paying commissions at fixed rates.
As mining licences are non-transferable under law, their unauthorised use allowed syndicate members to extract far more sand and black stone than permitted. A large portion of the illegally mined minerals was sold in the grey market through cash transactions, often using forged Y Forms.
The proceeds of crime were allegedly routed through cash dealings, including country liquor businesses and other ventures, making most transactions unaccounted and unrecorded.
Following the searches, the ED recovered cash amounting to Rs 2.63 crore. Officials also seized several incriminating documents, property records, agreements, powers of attorney and mining lease papers linked to the accused.
This apart, several high-end benami vehicles, suspected to have been purchased using proceeds of crime, were unearthed during the operation. Further investigation into the case is in progress.
