LUCKNOW — State authorities are facing a deepening crisis of integrity as an investigation into the wealth of government officials has exposed an intricate method of money laundering: the purchase of vast tracts of mineral-rich land, including entire hills, in Uttar Pradesh’s Purvanchal region. The allegations center on a powerful nexus of Goods and Services Tax (GST) department officials accused of using their massive, ill-gotten earnings to buy and operate quarries containing Dolo Stone, Sandstone, and Lime Stone.
The Investment in Stone and Sand
Sources close to the investigation reveal that the officials are suspected of accumulating crores of rupees in unaccounted income, which they could not safely disclose or deposit following recent crackdowns on black money. To bypass scrutiny, these officials formed influential “syndicates” to invest directly in physical assets with easy liquidity and opaque transaction records, primarily in the Mirzapur and Sonbhadra districts. These investments focused on acquiring properties rich in key construction and industrial minerals: Dolo Stone, Sandstone, and Lime Stone. The black market value of these resources, which are essential for cement manufacturing and construction, provided the perfect mechanism to convert ‘black money’ into ‘white money’ through future sales and inflated contracts.
The Scale of the Hidden Economy
The depth of this alleged corruption is staggering. According to the reports, the powerful syndicates operating under the cover of the GST officials manage a business that generates an estimated annual average income of ₹20 to ₹30 Crore (approximately to million) per group. The reports also state that the prices of these minerals are highly manipulated. For instance, Dolo Stone in Sonbhadra is listed at a low official rate, but the real-world trading price—often manipulated by these syndicates—is significantly higher. Similarly, the sand and clay used for making bricks and road materials, which is also reportedly controlled by this network in Mirzapur, involves illegal commissions that ensure maximum returns on their illicit investments. This control allows the officials to perpetually funnel their black money through illegal mining and trade, generating even more dark revenue.
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Capitalizing on Crisis and Cover-Up
The timing of the large-scale land acquisition by these syndicates is highly important. The report suggests that the officials used the period following the 2017 rollout of the GST system and the subsequent chaos of the COVID-19 pandemic as an “opportunity in disaster.” During these periods of reduced oversight and market instability, they allegedly used their official influence to secure land acquisition documents and mining rights. A two-pronged strategy was reportedly used to legitimize the operations: first, creating a network of builders and influential frontmen to manage the purchased hills and quarries, and second, directly using their authority within the GST department to protect the operations from official scrutiny. This institutional cover ensured that their black money investments remained safe and profitable.
The Widening Investigation and Impact
The investigation is not confined to the tax department alone. Authorities are aggressively pursuing leads related to the land purchases, including a focused probe on a builder in the Ambedkar Nagar district who allegedly facilitated the land transactions for the officials. Several high-ranking officers are reportedly now under the scanner as the scope of the money laundering network widens.
