NEW DELHI / PATNA: The Enforcement Directorate has notified the Bihar government of a suspected ₹131.43 crore sand mining scam in Banka district and urged local authorities to register a fresh FIR to enforce criminal charges, government sources confirmed.
Between 2017 and 2018, Banka police registered seven FIRs against Mahadev Enclave and its promoters for alleged illicit sand extraction. The complaints invoked provisions of the IPC (including cheating, forgery, theft), the Mines and Minerals Development and Regulation Act, Bihar Minerals Rules, and the Environment Protection Act.
The company was reportedly the only licensed entity operative in the district, authorised to mine sand from 28 riverbanks between 2015 and 2021, according to mining department data.
With legal delays, authorities opted for a Lok Adalat settlement in February 2023, allowing the accused to evade prosecution after paying a penalty. This compounding has restricted the ED’s ability to pursue criminal charges as it cannot proceed without a valid predicate offence under the PMLA.
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ED commissioned a geospatial analysis from IIT Patna to support its case, which determined that approximately 11.99 crore cubic metres of sand were unlawfully excavated beyond approved lease areas between 2016 and 2021. Based on prevailing mining rates, ED estimates the state revenue loss at over ₹131 crore.
Under Section 66(2) of the PMLA, ED has formally shared evidence and intelligence with Bihar’s Mines & Geology department, requesting them to lodge a fresh FIR under relevant sections—cheating, corruption, criminal conspiracy, environmental breaches—to enable legal action.
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According to informed sources, recent money trail analysis has also raised suspicions of involvement by local politicians and associates.