Jalandhar/Ferozepur. The Jalandhar Zonal Office of the Enforcement Directorate (ED) has initiated stringent legal action in a high-profile environment-linked money laundering case, filing a prosecution complaint on December 15, 2025, before the Special Court (PMLA), Jalandhar, under the Prevention of Money Laundering Act (PMLA), 2002. The complaint has been filed against M/s Malbros International Private Limited, its director Gautam Malhotra, and other associated individuals.
The ED’s action brings to light a case where systematic environmental violations were allegedly used as a means to generate unlawful financial gains, highlighting a growing intersection between ecological damage and economic crime.
Probe Triggered by Punjab Pollution Control Board Complaint
The investigation was initiated on the basis of a criminal complaint filed by the Punjab Pollution Control Board (PPCB) under provisions of the Water (Prevention and Control of Pollution) Act, 1974. The complaint alleged that Malbros International had been disposing of untreated industrial effluents into deep underground aquifers by employing the illegal practice of reverse boring.
According to the ED, such acts constitute scheduled offences, and the financial benefits derived from these activities qualify as “Proceeds of Crime” (POC) under the PMLA framework.
Serious Allegations Against Ferozepur-Based Industrial Unit
ED’s investigation revealed that the industrial unit of Malbros International is located at Village Mansurwal, Zira Tehsil, Ferozepur district. The unit was allegedly involved in deliberate and continuous groundwater contamination as part of its routine operations.
Investigators found that untreated industrial waste was being covertly and repeatedly discharged into deep aquifers through reverse boring, bypassing mandated treatment mechanisms. In addition, effluents were allegedly released onto adjacent land parcels, local drains, and towards a nearby sugar mill, causing sustained damage to surrounding water bodies and agricultural land.
₹80 Crore Identified as Proceeds of Environmental Crime
The ED has asserted that by flouting environmental norms and avoiding compliance costs, the company continued operating its factory and, during the period under investigation, generated and acquired approximately ₹80 crore as Proceeds of Crime.
Officials noted that the case illustrates how environmental degradation was allegedly institutionalised as a cost-cutting strategy, allowing the enterprise to maximise profits while inflicting long-term ecological harm.
Earlier Searches and Cash Seizure
As part of the ongoing probe, the ED had earlier conducted search operations at eight locations on July 16, 2024, under the provisions of PMLA. During these searches, ₹78.15 lakh in cash was recovered and seized. Several incriminating documents, financial records, and digital evidence were also taken into custody.
Assets Worth ₹79.93 Crore Provisionally Attached
Further tightening the legal noose, the ED issued a Provisional Attachment Order on December 13, 2025, attaching immovable assets valued at approximately ₹79.93 crore belonging to Malbros International Private Limited. The attached properties include the company’s land, buildings, plant, and machinery, which are alleged to be linked to the proceeds generated through unlawful activities.
Environmental Crime Meets Financial Enforcement
ED officials stated that the case underscores a troubling trend where environmental offences are increasingly intertwined with financial crimes and money laundering. The agency has indicated that investigations are ongoing to ascertain the role of additional individuals and entities connected to the operation.
The action serves as a strong signal that profits earned through the exploitation of natural resources and environmental violations will attract strict scrutiny under anti-money laundering laws, reinforcing the government’s stated resolve to treat environmental crime as a serious economic offence.
