Hyderabad | In a major crackdown on illegal mining activities, the Enforcement Directorate (ED) has uncovered a massive financial irregularity involving an alleged ₹2,407 crore illegal sand mining scam. The agency conducted coordinated raids across Hyderabad, Jaipur and Coimbatore, targeting multiple premises linked to infrastructure and mining companies, triggering widespread concern in the sector.
The searches were carried out on May 26, 2026, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. ED officials raided eight locations, including offices of M/s GCKC Projects and Works Pvt. Ltd., M/s Prathima Infrastructure Ltd., and M/s Turnkey Enterprises Pvt. Ltd., along with residential premises of key individuals associated with the firms.
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According to investigation sources, the case originated from an FIR registered in Andhra Pradesh’s NTR district by the Anti-Corruption Bureau (ACB) CIU unit. The FIR alleged large-scale irregularities in sand mining operations, including violations of tender conditions, illegal extraction, and misuse of official permissions involving private companies and government-linked officials.
Preliminary findings of the ED suggest that several companies exceeded permitted excavation limits and carried out mining outside approved geographical zones. These alleged violations not only resulted in massive loss of government revenue but also raised concerns over environmental damage caused by unregulated sand extraction activities.
Investigators also noted that reports submitted by District Level Sand Committees (DSLCs), constituted under Supreme Court directions, had highlighted repeated violations. These reports indicated that mining operations were carried out far beyond approved depth limits and without adequate monitoring mechanisms.
Following these findings, the Mines and Geology Department issued show-cause notices to the companies involved. Later, demand notices amounting to ₹2,407.70 crore were raised, representing alleged dues linked to illegal excavation and violations of mining rules. This figure underscores the scale and seriousness of the financial irregularities under investigation.
During the raids, ED seized ₹1.53 crore in cash, approximately 1,800 US dollars in foreign currency, silver bullion worth ₹1.29 crore, along with several digital devices and incriminating documents. Officials stated that the recovered material includes records related to bank transactions, property holdings, and financial flows linked to mining operations.
Authorities said the seized electronic devices and documents will undergo detailed forensic examination to reconstruct the money trail and identify the beneficiaries of the alleged illegal proceeds. The agency is also probing whether the illicit funds were layered and integrated into legitimate financial systems through shell entities or proxy transactions.
ED officials indicated that further action, including asset attachment and possible arrests, may follow as the investigation progresses. They emphasized that the case is still in its early stages and that multiple layers of financial and operational networks are yet to be fully uncovered.
Experts observing the case noted that illegal sand mining has emerged as a persistent issue in India, often involving a nexus between contractors, intermediaries and administrative networks. Such operations typically lead to significant revenue loss for the state and cause severe environmental degradation due to unchecked exploitation of natural resources.
The ED is currently examining all associated companies, their promoters, and related financial networks to establish the complete structure of the alleged scam. The focus remains on identifying how the alleged ₹2,407 crore irregularity was executed and who ultimately benefited from the transactions.
