Bhubaneswar, January 18:The Enforcement Directorate (ED) has seized Rs 2.63 crore in cash and crucial documents following raids on over 25 premises linked to illegal sand and blackstone mining activities in Ganjam district, Odisha. The raids, which were conducted on January 16, targeted individuals involved in illicit mining operations and were carried out under the Prevention of Money Laundering Act (PMLA), 2002.
The coordinated operation led by the ED’s Bhubaneswar Zonal Office focused on contractors and business owners involved in illicit country liquor (bhati) operations. During the searches, the agency uncovered Rs 2.63 crore in cash, along with incriminating documents, property records, mining leases, and power agreements. Additionally, several high-end vehicles, acquired through the proceeds of crime, were seized.
The premises raided were linked to syndicates with known criminal backgrounds, who had been using force and coercion to conduct illegal mining and sell minor minerals in the region. These activities had terrorized local populations, the ED stated.
The agency’s investigation was sparked by multiple FIRs filed against sand syndicates engaged in illegal mining and smuggling operations across Ganjam. These syndicates used fraudulent Y forms (also known as transit permits) to facilitate the illegal transportation of minerals. The individuals involved in the syndicates have been implicated in serious crimes such as murder, kidnapping, physical assault, forgery, extortion, and cheating, according to the ED.
Further investigation revealed that the Comptroller and Auditor General (CAG) had highlighted the widespread illegal mining along the riverbeds of Rushikulya, Bahuda, and Bada in Ganjam, which had resulted in significant financial losses to the state.
The ED uncovered that mining leases were illegally obtained in the names of various individuals through syndicate associates who provided commissions to original leaseholders. Mining licences are non-transferable by law, but these illegal transfers allowed syndicate members to extract more sand and blackstone than legally permitted. These illicitly obtained minerals were sold in the grey market, typically for cash, which was funneled through businesses like country liquor operations.
Most of these transactions were not recorded, causing massive revenue losses for the government.
