In a major crackdown on illegal coal mining and money laundering, the Directorate of Enforcement (ED) has provisionally attached assets worth ₹100.44 crore under the Prevention of Money Laundering Act (PMLA), 2002. The investigation centres on a syndicate allegedly led by Anup Majee alias Lala, accused of orchestrating large-scale illegal excavation and pilferage of coal from leasehold areas of Eastern Coalfields Limited (ECL).
Officials said illegally mined coal was supplied to multiple factories across West Bengal, with the network enjoying local protection that ensured unhindered movement of trucks. In cases of interception, immediate “clearances” were reportedly arranged, allowing vehicles to pass without delay.
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Fake ‘Lala pad’ ran the transport racket
The ED probe has revealed that Majee introduced an illegal transport challan system known as the “Lala pad”—a fake tax invoice issued in the names of non-existent firms. Along with this bogus challan, transporters were handed a ₹10 or ₹20 currency note.
Drivers were instructed to photograph the note while holding it next to the number plate of the truck, dumper or tipper carrying illegal coal and send the image to syndicate operators. These photographs were then circulated via WhatsApp to police personnel and other officials stationed along the route, ensuring that vehicles were not stopped—or were immediately released if intercepted.
Investigators say this digital “clearance mechanism” became the backbone of the illegal coal transportation network.
₹2,742 crore proceeds of crime, hawala used to move cash
Analysis of seized registers, digital records, Tally data and WhatsApp communications under the PMLA investigation has pointed to approximately ₹2,742 crore in alleged Proceeds of Crime. Officials said cash generated from illegal mining was laundered through layered financial transactions and an underground hawala network.
In a typical hawala transaction, the recipient would share a unique code—often the serial number of a ₹10 or other denomination currency note. This serial number acted as the authentication key. The sender relayed the code to a hawala operator, who passed it on to an associate in the recipient’s city.
Once the agreed cash amount was delivered, the recipient produced the specific currency note bearing the pre-shared serial number to establish identity. After verification, the cash was handed over—without any banking trail or formal documentation.
The ED said this system enabled large sums of money to be moved across locations outside the regulated financial framework, effectively bypassing oversight mechanisms.
Steel sector firms under scanner
Investigators have also found that certain companies in the steel and iron sector allegedly purchased illegally excavated coal in cash, knowingly assisting in using and projecting the Proceeds of Crime as untainted.
The latest attachment includes immovable properties, fixed deposits and mutual fund investments held in the names of beneficiary companies, including Shakambhari Ispat and Power Limited and Gagan Ferrotech Limited.
With this action, the total value of assets attached in the case so far has risen to ₹322.71 crore.
Multiple layers being unravelled
Officials said the offence involves complex, multi-layered financial transactions designed to conceal and disguise the Proceeds of Crime. The ED is systematically peeling back each layer to identify ultimate beneficiaries, trace additional assets and detect other individuals involved in laundering illegally generated funds.
On January 8, 2026, the agency carried out searches at 10 locations across Kolkata and Delhi. Digital evidence and documents seized during those operations have played a key role in linking the Proceeds of Crime to properties now under attachment. Transaction pattern analysis through banking channels and cross-verification of property records are currently underway, with further attachments not being ruled out if fresh assets are identified.
Officials stressed that the probe is not limited to asset seizure alone. The agency is also mapping the wider financial ecosystem surrounding the syndicate, including possible facilitators and corporate beneficiaries.
Reiterating its commitment to tackling economic offences, the ED said illegal mining and money laundering directly harm public interest, as natural resources are public assets held in trust for citizens. The agency confirmed that further investigation is in progress, and additional legal action will follow as new evidence emerges.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
