The Enforcement Directorate (ED) swung into action against individuals involved in illegal sand and blackstone mining, conducting searches at over 25 locations across Odisha’s Ganjam district.
An official, on Sunday, said that the operation resulted in the seizure of Rs 2.63 crore in cash and various incriminating documents.
The co-ordinated search operation was executed by the Directorate of Enforcement (ED), Bhubaneswar Zonal Office on January 16 under the Prevention of Money Laundering Act (PMLA), 2002.
Those targeted in the action included contractors and proprietors linked to country liquor (bhati) operations, the ED said.
In addition to the Rs 2.63 crore in cash, investigators recovered several incriminating documents, substantial property records, power agreements, and mining leases executed by the suspects.
The search also unearthed several high-end benami vehicles, which the agency believes were purchased using the proceeds of crime.
According to the ED, the searched premises belonged to brokers and syndicates with serious criminal backgrounds and their business associates. These individuals allegedly used muscle power to forcibly conduct illegal mining and mineral sales while terrorising local residents.
The federal probe agency initiated an investigation on the basis of FIRs registered against various sand syndicates that used to carry out illegal mining and transportation (smuggling) of minor minerals in Ganjam district by using false and fabricated Y forms (transit permits).
Several members of these syndicates have FIRs registered against them in Ganjam district, including murder, kidnapping, physical assault, forgery, cheating, and extortion.
Furthermore, the Comptroller and Auditor General (CAG) also flagged widespread illegal mining along the Rushikulya, Bahuda, and Bada riverbeds. These activities have reportedly caused significant financial losses to the government treasury, it said.
Mining licences issued in the names of other leaseholders are not transferable and are prohibited under law.
This unauthorised usage of licences, which were in the names of other leaseholders, allowed members of the syndicate to extract more sand or blackstone than permitted by government regulations, the ED said.
A majority of minerals obtained through unauthorised mining were traded in the grey market, typically through cash payments.
The modus operandi also included the use of forged Y forms (transit passes) to sell illegally obtained minerals in the grey market. The proceeds generated from the illegal mining were dealt in cash, which was channelised through country liquor and other businesses, the ED said.
Most of these transactions are unaccounted and unrecorded, causing huge losses to the government, it said.
