ED seizes Rs 2.63 crore cash, several vehicles during raids in Odisha's Ganjam

Bhubaneswar, Jan 18 (PTI) The Enforcement Directorate (ED) has seized Rs 2.63 crore cash and several vehicles during raids at over 25 locations in Odisha's Ganjam district as part of an ongoing probe into illegal sand and black stone mining and related money laundering activities, an official statement said.

The ED in a statement said that it's Bhubaneswar Zonal Office on January 16 under the provisions of the Prevention of Money Laundering Act (PMLA), raided places and busted a syndicate involved in illegal mining, as well as contractors and proprietors associated with country liquor operations. Over 175 officials from six states took part in the operation, it said.

The raids covered the premises of syndicate members accused of forcibly conducting illegal mining of minor minerals by using muscle power and terrorising local people.

Earlier, the ED initiated investigation by recording an Enforcement Case Information Reports (ECIR) based on several FIRs registered against various sand syndicates who used to carry out illegal mining and transportation of minor minerals in the district of Ganjam by using false and fabricated transit permission, the statement said.

The Enforcement Directorate's raids were also based on reports of the Comptroller and Auditor General (CAG), which flagged rampant illegal mining along the riverbeds of Rushikulya, Bahuda and Bada rivers in Ganjam district. The illegal activities allegedly caused huge losses to the government exchequer, it said.

"Several members of the syndicates reportedly have serious criminal cases registered against them, including charges of murder, kidnapping, physical assault, forgery, cheating and extortion," the ED said.

The criminal antecedents and the CAG reported suspicious illegal financial transactions formed the basis of ED's investigation under the provisions of the Prevention of Money Laundering Act, 2002, in the areas of illegal and unauthorised mining of minor minerals in Ganjam district and smuggling them to other districts and states.

On the modus operandi of such illegal activities, the ED stated that the mining leases issued in the names of genuine leaseholders were unlawfully and forcibly taken over by syndicate members. This was allegedly done under the guise of paying commissions at fixed rates, it said.

However, the agency said that mining licenses are non-transferable under law, and their unauthorised use allowed syndicate members to extract far more sand and black stone than permitted.

"A large portion of the illegally mined minerals was sold in the grey market through cash transactions, often using forged Y Forms (transit permission). The proceeds of crime were allegedly routed through cash dealings, including country liquor businesses and other ventures, making most transactions unaccounted and unrecorded," the agency said.

The statement noted that following the search, cash totalling Rs 2.63 crore was recovered along with several incriminating documents, substantial property records, and agreements, including power agreements and mining leases executed by the individuals in question.

"These items were duly seized from their possession. Several high-end benami vehicles were unearthed in the search action, which was obtained through the proceeds of crime," the ED said, adding that further investigation in this case is in progress. PTI AAM AAM RG