New Delhi — The Enforcement Directorate (ED) on Friday launched one of its most expansive operations in recent months, conducting synchronised raids across more than 40 locations in Jharkhand and West Bengal. The crackdown is part of an ongoing probe into large-scale coal theft, illegal mining and the laundering of proceeds generated through these activities.
According to officials, the searches were carried out under the Prevention of Money Laundering Act (PMLA) and targeted a network accused of causing losses worth hundreds of crores to the exchequer. The agency recovered significant quantities of unaccounted cash, gold jewellery, digital evidence and financial records during the operation.
Coordinated Action Against Coal Mafia Networks
The multi-state operation began early Friday morning, with ED teams simultaneously reaching sites linked to:
- Illegal coal extraction
- Coal transportation operators
- Storage depots
- Logistics handlers
- Middlemen suspected of facilitating laundering activities
Officials described the raids as a “coordinated push against entrenched coal mafia networks”, adding that these groups have been operating across mining belts for years, manipulating transport records and routing illegally mined coal into the formal market.
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How the Network Operated: Extraction to Laundering
ED’s investigation has indicated that the racket operated through a three-tier structure, enabling the seamless movement of illegal coal and the subsequent legitimisation of illicit profits.
- Illegal Extraction : Coal was allegedly mined beyond permitted limits or from unauthorised pockets near legal mining zones.
- Transportation and Diversion: Loaded trucks and dumpers diverted high-grade coal to private buyers, while manipulated records showed lower quantities or inferior quality being transported.
- Laundering Through Shell Firms: Proceeds from these illegal sales were allegedly routed through shell companies, fake invoices, cash layering, hawala channels, and benami bank accounts.
ED claims that the profits were eventually funnelled into real estate, trading businesses and personal assets.
Major Recoveries: Cash, Gold and Digital Trails
Initial reports show that ED seized:
- Large amounts of cash without accounting records
- Gold and jewellery suspected to be purchased from proceeds of crime
- Mobile phones, laptops and hard drives
- Ledgers, transport slips and books of accounts
- GPS data from trucks linked to suspicious movements
Officials noted that these materials will help establish the scale of the operation and identify the key beneficiaries and controlling entities behind the racket.
Scrutiny Likely to Expand: Political and Administrative Links Under Watch
While ED has not named any political leaders or government officials so far, officers confirmed that the financial trail will determine the next stage of the probe. A senior official said:
“A money-laundering investigation remains incomplete until the end beneficiaries are identified. Further questioning is inevitable.”
This signals that the investigation may expand to individuals holding influential positions if their involvement is established through recovered evidence.
More Raids Expected as Agency Analyses Seized Records
The agency is now conducting a detailed forensic examination of digital and physical documents. The next phase of the probe could involve: Arrests of key operatives, Freezing of bank accounts, Attaching properties acquired through illegal proceeds, Summons for individuals linked to financial transactions. Officials hinted that this is only the first phase, and more searches may be conducted in the coming days.
