ED Seizes ₹2.63 Cr in Ganjam Illegal Mining Raids

Bhubaneswar: Cracking down on illegal sand and blackstone mining, the Enforcement Directorate (ED) conducted coordinated searches at more than 25 locations across Odisha’s Ganjam district and seized ₹2.63 crore in cash along with incriminating documents, an official said on Sunday.

The searches were carried out by the ED’s Bhubaneswar Zonal Office on January 16 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The action targeted individuals allegedly involved in large-scale illegal mining operations, including contractors and proprietors linked to country liquor (bhati) businesses.

During the raids, the agency recovered ₹2.63 crore in cash, substantial property documents, power agreements, mining leases and other records believed to be linked to proceeds of crime. Several high-end benami vehicles, allegedly purchased using illegal earnings, were also unearthed.

According to the ED, the premises searched were connected to brokers, organised syndicates with serious criminal antecedents, and their business associates. The agency alleged that the syndicates used muscle power to forcibly carry out illegal mining and sale of minor minerals by terrorising local residents.

The probe was initiated based on multiple FIRs registered in Ganjam district against sand mining syndicates accused of illegal extraction and transportation of minor minerals using forged and fabricated Y forms (transit permits). Several members of these syndicates are facing cases involving serious offences such as murder, kidnapping, physical assault, forgery, cheating and extortion.

The ED also cited observations by the Comptroller and Auditor General (CAG), which flagged rampant illegal mining along the riverbeds of Rushikulya, Bahuda and Bada rivers in Ganjam district, resulting in significant losses to the government exchequer.

Investigations revealed that mining leases were allegedly obtained unlawfully in the names of original allottees by syndicate members through coercion or by offering commissions at predetermined rates. As mining licences are non-transferable under law, the unauthorised use of such leases enabled the syndicates to extract sand and blackstone far beyond permitted limits.

A large portion of the illegally mined minerals was reportedly sold in the grey market through cash transactions. The syndicates also allegedly used forged Y forms to facilitate the sale and transportation of illegally extracted minerals.

The ED said the proceeds from illegal mining were largely handled in cash and channelised through country liquor and other businesses. Most of these transactions were unaccounted for, causing substantial revenue losses to the government.

Further investigation into the money laundering network and assets linked to the illegal mining syndicates is ongoing, the agency added.