The Enforcement Directorate (ED) has provisionally seized assets amounting to Rs 100.44 crore as part of a continuing investigation into money laundering linked with extensive illegal coal mining activities. This operation involves significant pilferage within the leasehold areas of Eastern Coalfields Limited (ECL). The ED announced these actions on Friday, emphasizing the scale and organized nature of the illicit coal extraction.
Role of Anup Majee and Coal Extraction Syndicate
Anup Majee, also recognized as Lala, is identified by the ED as the leader of the syndicate conducting these illegal operations. The agency stated that the syndicate was actively involved in unauthorized coal excavation and extensive theft of resources. The coal extracted unlawfully was reportedly supplied to various factories across West Bengal, facilitated by support from local administrative bodies.
Manipulation of Transport Documentation
The investigation illuminated the use of an illegal transport challan known as the “Lala pad,” which was designed to circumvent regulatory checks. This counterfeit document served as a tax invoice, issued under fictitious business names. To further deceive authorities, a small denomination currency note was provided to transporters, who had to photograph the note alongside the vehicle’s registration plate. This image was then forwarded to the coal syndicate’s operator, allowing transporters to navigate law enforcement oversight, ensuring their cargo was not halted or was quickly released if stopped.
Financial Scale of the Operations
Records associated with the syndicate indicate that the operation generated significant Proceeds of Crime, approximating Rs 2,742 crore. Analysis during the investigation, which includes confiscated registers, digital data, and communication logs, has revealed a complex network of cash transactions and the utilization of hawala channels to facilitate the layering and transfer of these proceeds.
Hawala Network and Transaction Mechanism
The investigation further unveiled that the syndicate had established an underground hawala system to handle cash transactions without formal banking processes. Typically, the sender would provide a unique code, often the serial number of a currency note, which served as an authentication mechanism. This code was communicated to a hawala operator, who relayed it to an associate at the recipient’s end. Upon delivering the cash, the recipient would present the specific note with the pre-shared serial number. This arrangement allowed sizable transactions to occur without formal documentation, enhancing the obscurity of the financial activities.
Connecting Beneficiary Companies with Illicit Activities
The ED’s investigation has determined that certain companies in the steel and iron industries knowingly acquired illegally sourced coal for cash transactions, effectively integrating the Proceeds of Crime into their operational finances. The assets that have been seized include immovable properties, fixed deposits, and mutual funds associated with identified beneficiary companies, such as Shakambhari Ispat and Power Limited and Gagan Ferrotech Limited.
Accumulated Asset Attachments in the Case
With this recent seizure, the total value of assets attached in this case has now reached Rs 322.71 crore. The ED has characterized the offense as involving multiple layers of financial transactions, specifically designed to obscure and disguise the origins of the illicit earnings. Previously, on January 8, the ED executed searches at ten locations in both Kolkata and Delhi as part of this inquiry. The evidence obtained during these operations is currently under rigorous examination and has played a crucial role in establishing connections between the Proceeds of Crime and the properties that have been seized.