The Enforcement Directorate (ED) has provisionally attached assets valued at Rs 159.51 crore in connection with the investigation into large-scale illegal coal mining and pilferage at Eastern Coalfields Limited (ECL). This action was taken under the Prevention of Money Laundering Act (PMLA), 2002. The ED revealed that the illegal mining operations were allegedly orchestrated by a syndicate led by Anup Majee, also known as “Lala.”
Certain companies in West Bengal are implicated for knowingly purchasing illegally mined coal in cash, aiding in concealing and projecting the proceeds of crime as legitimate income. The attached assets include investments in financial instruments like corporate bonds and alternate investment funds held by beneficiary entities such as Shyam Sel and Power Limited and Shyam Ferro Alloys Limited. These companies are part of the Shyam Group, managed by Sanjay Agarwal and Brij Bhushan Agarwal.
The investigation uncovered that the syndicate was involved in extensive illegal excavation and coal pilferage, supplying the material to various factories across West Bengal with the alleged involvement of local administrative elements. The ED highlighted a key modus operandi involving an illegal transport challan system called the “Lala pad,” which operated as a fake tax invoice issued under non-existent entities.
Additionally, transporters were reportedly given Rs 10 or Rs 20 currency notes along with the fake challan. They would photograph the note next to the vehicle’s number plate carrying the illegal coal and share it with syndicate operators. These images were then circulated via WhatsApp to certain officials along the transit route to ensure the vehicles were not intercepted or were swiftly cleared if stopped.
The ED also discovered the use of an underground hawala network to transfer proceeds of crime in cash, bypassing formal banking channels. Transactions were authenticated using unique identifiers, typically the serial number of a currency note shared between sender and recipient, enabling cash transfers without documentation and leaving minimal audit trails. With this recent action, the total value of assets attached in the case has now reached Rs 482.22 crore.
The ED stated that the case involves intricate financial transactions aimed at concealing the origin and ownership of illicit funds. The investigation is ongoing to identify ultimate beneficiaries, trace further proceeds of crime, and establish the roles of all individuals involved in the money laundering network.
