Coal smuggling scam: Multiple shell companies used for diversion of proceeds of crime under ED scanner
Kolkata, Nov 25
The Enforcement Directorate (ED) is investigating the roles of multiple shell companies behind the diversion of the proceeds of crime in the multi-crore coal smuggling scam spread across West Bengal and Jharkhand.
The ED officials secured this information after seizing incriminating documents during simultaneous raid and search operations at as many as 44 locations in West Bengal and Jharkhand on November 21.
Sources aware of the development said examination of the incriminating documents seized by the ED officials revealed that two patterns were followed to divert the proceeds of the crime through these shell companies.
In the first pattern, huge amounts were deposited in cash and in phases into the bank accounts of these shell companies, and the same amount was withdrawn from those bank accounts on the same day and within hours of the time of deposit.
The second pattern was relating to the purchases of huge plots of land in various parts of West Bengal and Jharkhand in the names of these shell entities.
Sources said that the examination of the incriminating documents seized by the ED officials last week also revealed the involvement of some politically influential persons both in West Bengal and Jharkhand.
Of the 44 locations where the ED officials, along with Central Armed Police Forces (CAPF) personnel, conducted simultaneous raids and search operations last week, 24 were in West Bengal, and 20 were in Jharkhand. The main charges in the cases are large-scale illegal mining, theft, transportation, storage, and sale of coal.
During the raid and search operations, cash and jewellery/gold worth over Rs 14 crore, along with a substantial volume of incriminating evidence, including various property deeds linked to the coal syndicate and agreements related to the sale and purchase of land, and several digital devices, books of accounts of entities controlled by the said persons were seized.
The ED and the Central Bureau of Investigation (CBI) have been conducting parallel probes in the multi-crore coal smuggling case. Recently, the CBI informed the court that the investigation in the matter will be wound up soon.
The latest raids by the ED officials at multiple locations in West Bengal and Jharkhand come just a few days after the CBI’s submission at the court.
— IANS
Reader Comments
Same day cash deposits and withdrawals? This is classic hawala style operation. These people think they're so clever but ED is catching up with their tricks. Good work by the agencies!
Rs 14 crore in cash and gold seized? That's just the tip of the iceberg. These scams run into thousands of crores. Hope the investigation reaches the big fish and not just small fry.
As someone who works in compliance, I can say these patterns are textbook money laundering. The land purchases through shell companies is particularly clever - it's hard to trace the ultimate beneficiaries. Hope ED has the political will to follow through.
"Politically influential persons" involved - no surprise there! Coal mafia has deep political connections in both states. This is why our natural resources get looted while common people suffer.
While I appreciate the investigation, I hope ED maintains complete transparency. Sometimes these raids become political tools. The evidence should speak for itself without selective targeting.
Illegal mining destroys our environment and these people make crores from it. The land they bought with dirty money should be confiscated and used for public welfare. Justice must be served! ðŸ™
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