ED attaches ₹159.51 crore assets in Bengal coal scam linked to illegal mining syndicate

The Enforcement Directorate has carried out a major action in West Bengal during the ongoing Assembly elections, attaching assets worth ₹159.51 crore in connection with an alleged large-scale illegal coal mining and coal theft racket operating in leased areas of Eastern Coalfields Limited (ECL). The action has been taken under the Prevention of Money Laundering Act, 2002, as part of an ongoing investigation into proceeds of crime generated through the alleged syndicate network.

According to investigation findings, the illegal mining operations were allegedly controlled by a syndicate led by Anup Majhi, also known as “Lala”. The agency has claimed that the group facilitated large-scale extraction and transportation of stolen coal, which was then sold to various industrial units in West Bengal. The proceeds generated from these activities were allegedly routed through multiple financial channels to conceal their illegal origin.

The ED further stated that certain beneficiary companies in the state were involved in purchasing illegally mined coal in cash transactions, thereby helping to integrate the illicit earnings into the formal economy. The attached assets reportedly include investments in corporate bonds and alternative investment funds held in the names of entities associated with the Shyam Group, including Shyam Sel and Power Limited and Shyam Ferro Alloys Limited, managed by Sanjay Agarwal and Brij Bhushan Agarwal.

The investigation has also uncovered an alleged modus operandi involving a fake transport challan system known as the “Lala Pad,” which was reportedly used to move coal illegally without detection. The agency claims that forged documents, cash facilitation methods, and a hawala-based transfer network were used to distribute proceeds of crime, with coded verification systems and note-based identifiers used to track transactions outside the formal banking system.