The Directorate of Enforcement has provisionally attached assets valued at ₹159.51 crore in connection with a sprawling illegal coal mining and money laundering investigation in West Bengal. This latest action, taken under the Prevention of Money Laundering Act, targets a sophisticated syndicate allegedly responsible for the systematic pilferage of coal from leasehold areas belonging to Eastern Coalfields Limited. With this recent attachment, the total value of seized assets in the ongoing probe has risen to ₹482.22 crore as investigators work to dismantle a complex financial network involving corporate entities and illegal intermediaries.
Syndicate Operations and Corporate Involvement
The investigation identifies Anup Majee, also known as Lala, as the alleged leader of a syndicate that orchestrated unauthorized coal excavation and transportation over an extensive period. This operation reportedly caused significant losses to the state exchequer while distorting regulated mining supply chains. According to the Enforcement Directorate, several companies based in West Bengal acted as beneficiaries by purchasing the illegally mined coal through cash transactions. These funds were then allegedly projected as legitimate business income through layered financial structures. Specifically, the agency has pointed to investments in corporate bonds and alternative investment funds held by entities such as Shyam Sel and Power Limited and Shyam Ferro Alloys Limited, both of which are linked to the Shyam Group.
Forged Documentation and Transit Coordination
A central component of the illegal trade was the use of a forged transport documentation system known as the Lala pad. This mechanism involved issuing illegal challans in the names of non-existent or shell entities to create a false trail of regulatory compliance for coal moving across district and state lines. To ensure the smooth passage of these shipments, the syndicate reportedly employed a unique coordination method involving small currency notes. Drivers would photograph a ₹10 or ₹20 note alongside their vehicle registration number and share the image via messaging platforms. These photos served as identifiers to coordinate movement and allow transporters to bypass interception at various checkpoints.
Hawala Networks and Financial Layering
Beyond the physical movement of coal, the Enforcement Directorate has uncovered an underground hawala network used to launder the proceeds of crime. This system allowed for the transfer of large sums of cash outside of formal banking channels, utilizing unique identifiers such as currency note serial numbers to authenticate transactions. Once these identifiers were verified, cash was handed over without documentation, enabling the untraceable movement of funds through multiple layers of intermediaries. The agency continues to examine digital records, communication logs, and banking data to trace the full extent of the money trail and identify the ultimate beneficiaries of the laundering network.
