Kolkata, January 9: The Directorate of Enforcement (ED), Kolkata Zonal Office, has filed a Prosecution Complaint (PC) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, against Arun Saraf, M/s G D Mining Private Limited, and other associated entities in connection with an alleged illegal sand mining and money laundering racket, officials said.
The prosecution complaint was filed on January 3, 2026, before the Special Court (PMLA), Kolkata. Earlier, on January 2, 2026, the ED had provisionally attached 149 immovable properties worth ₹8.26 crore, held in the names of M/s G D Mining Private Limited and other group entities, as part of the ongoing investigation.
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The ED initiated its probe on the basis of multiple FIRs registered by the West Bengal Police, which alleged offences relating to theft of sand, illegal mining, unauthorised possession and transportation, and unlawful sale of sand. According to investigators, several entities were involved in the theft and sale of sand by using fake and forged road e-challans, enabling large-scale evasion of regulatory checks.
During the course of investigation, the ED identified a systematic modus operandi adopted by the accused entities. M/s G D Mining Pvt. Ltd., led by Arun Saraf, is accused of engaging in illegal extraction, transportation, storage and sale of sand, primarily through the use of forged e-challans, reuse of the same challans for multiple trips, and manipulation of transport records.
Officials said these illegal activities resulted in the generation of huge proceeds of crime running into several crores of rupees, leading to undue enrichment of the accused persons. The agency stated that the offences involved large-scale theft of natural resources, causing significant loss to the state exchequer.
Earlier searches conducted at various premises linked to the accused resulted in the recovery of incriminating documentary and digital evidence, which substantiated the alleged modus operandi. These materials indicated the generation of substantial unexplained income from illegal sand mining activities.
As part of the investigation, the ED sought technical assistance from the Central Public Works Department (CPWD) to accurately estimate the quantum of sand theft in recent years. Based on discrepancies in records and documentary evidence, the agency carried out detailed examinations. During questioning, the accused individuals were reportedly unable to provide satisfactory explanations for the inconsistencies flagged by investigators.
The probe further revealed that cash generated from illegal sand mining was partly brought into the formal accounting system through cash deposits and accounting manipulations. According to the ED, the accused entities attempted to project the illicit income as legitimate business receipts, thereby disguising the true origin of the funds.
Investigators also found that GST returns were manipulated after the ED initiated its probe, in an apparent attempt to account for excess cash deposits and legitimize the proceeds of crime. These laundered funds were subsequently used to purchase multiple immovable properties in the names of M/s G D Mining Pvt. Ltd. and its group companies, which have now been provisionally attached.
Earlier in the case, Arun Saraf, promoter of M/s G D Mining Private Limited, was arrested on November 6, 2025, and is currently in judicial custody. So far, multiple search operations have been conducted, resulting in the seizure of ₹99 lakh in cash, along with various incriminating documents and digital devices.
The ED said the investigation remains ongoing, with a focus on identifying the role of other individuals and entities, examining financial transactions involving shell companies, and further tracing, layering and utilisation of the proceeds of crime linked to the illegal sand mining network.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
