ED approaches HC, seeks direction to DGP to register FIR over 'illegal sand mining' in Tamil Nadu

Chennai, Oct 31 (PTI) The Enforcement Directorate on Friday approached the Madras High Court to direct the DGP to register FIR based on its communication to police department of "revenue loss" of about Rs 130 crore due to illegal sand mining in the state.

It sought a direction to departments, including the Water Resources, to render full cooperation for the ongoing investigation under the PMLA by furnishing all requisite documents, information and rendering any other support that may be necessary for effective investigation.

The first bench comprising Chief Justice M M Shrivastava and Justice G Arul Murugan before whom the petition filed by ED came up for hearing, ordered notice to the state government and the Director General of Police and posted after three weeks, further hearing of the case.

In his petition, M Kranthi Kumar, Assistant Director, Chennai Zonal Office-l, Directorate of Enforcement, Ministry of Finance, Department of Revenue, submitted that illegal mining activities has been carried out over an area of 987 hectares, beyond the permitted quarrying area.

An unaccounted excess volume of extraction of approximately 23,64,871.96 units of sand, equivalent to 66,21,641.5 cubic meters, was detected, which has not been recorded in the official government records.

The estimated value of the illegally extracted sand was to a tune of Rs. 4,730 crore over a span of 1-2 years, whereas the revenue reflected in the Water Resources Department's accounts for the same timeframe was only Rs. 36.45 crore.

From the investigation conducted till date, it has emerged that various private contractors and their associated/related entities/individuals have been involved in illegal riverbed sand mining by quarrying excessively beyond the permitted limits and in undesignated areas thereby causing huge loss to the exchequer and causing corresponding illegitimate enrichment for themselves.

Further, the excavators have been working continuously in and around the designated quarry locations, without any adverse action by the state government.

Therefore, a provisional attachment order dated January 31, 2024 was issued for Rs 130.59 crore for the attachment of excavators and bank accounts of 15 entities/individuals.

Considering the gravity of the offence, the ED shared the information with Tamil Nadu police through letters dated June 13, 2024, (under Section 66 (2) of PMLA, 2002 which mandates sharing of information with other government agencies) and also a subsequent reminder dated July 18, 2024.

The DGP was requested to initiate appropriate investigation in accordance with law into the widespread illegal sand mining in Tamil Nadu. However, no investigation has been initiated till date.

The information provided to police contained detailed and specific disclosures of offences under the IPC (now BNS), Prevention of Corruption Act, and Mines and Minerals (Development and Regulation) Act (MMDR Act), he added. PTI COR VGN KH