ED busts sand and black stone mining syndicate in Ganjam, seizes Rs 2.63 crore cash

The Enforcement Directorate (ED), Bhubaneswar Zonal Office, on January 16, carried out a large-scale search operation across Ganjam district under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, targeting alleged illegal mining and money laundering activities.

The searches were conducted at more than 25 locations, involving over 175 officials drawn from six states. The action focused on individuals allegedly involved in illegal sand and black stone mining, as well as contractors and proprietors linked to country liquor (Bhati) operations.

Cash Seizure and Ongoing Probe

During the searches, the ED uncovered evidence suggesting that illegally extracted minerals were sold in the grey market, primarily through cash transactions and the use of forged transit passes. The proceeds of crime were allegedly laundered through country liquor businesses and other commercial ventures.

The agency recovered Rs 2.63 crore in cash, along with incriminating documents, property records, power agreements, mining lease papers, and several high-end benami vehicles. The seized materials are being examined as part of the ongoing probe.

Illegal Mining Network, Criminal Antecedents & Operation 

According to the ED, the premises searched belonged to brokers, contractors and associated business partners accused of forcibly carrying out illegal mining operations and intimidating local residents. The investigation is based on multiple FIRs related to illegal mining and transportation using false and fabricated Y-Forms.

The Comptroller and Auditor General (CAG) had earlier flagged rampant illegal mining along the riverbeds of the Rushikulya, Bahuda and Bada rivers, which reportedly resulted in significant losses to the state exchequer.

Officials said several members of the alleged syndicate have criminal antecedents, with FIRs registered against them for serious offences including murder, kidnapping, assault, forgery, cheating and extortion.

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The ED further stated that mining leases issued in the names of legitimate leaseholders were allegedly unlawfully taken over by syndicate associates, despite such transfers being prohibited under the law.

Further Investigation Underway

The Enforcement Directorate said further investigation is underway to uncover the full extent of the money laundering network and the large-scale irregularities linked to illegal mining activities in the region.