New Delhi, February 13 The Enforcement Directorate (ED) said on Friday that it has attached fresh assets worth Rs 100 crore as part of its investigation into alleged illegal mining and coal theft in West Bengal, which it claims received "active" assistance from the local administration.
The most recent searches in this case were conducted in January at multiple locations, including premises in Kolkata linked with the political consultancy firm I-PAC and one of its directors, Pratik Jain.
The action on January 8 led to much controversy, with the ED alleging in a press statement that West Bengal Chief Minister Mamata Banerjee entered Jain's residence during the raids and "took away key evidence," and repeated the same at the I-PAC office.
Banerjee and the Trinamool Congress (TMC) had claimed that the ED, in the guise of these searches, was attempting to take away documents related to the party's election strategy from the I-PAC premises ahead of the state assembly polls.
In a statement on Friday, the ED said that a provisional order has been issued under the Prevention of Money Laundering Act (PMLA) to attach the immovable properties, fixed deposits, and mutual funds of "beneficiary" companies linked to this case -- Shakambhari Ispat and Power Ltd and Gagan Ferrotech Ltd.
The Shakambhari Group, headed by chairman and managing director Deepak Kumar Agarwal, is among the largest integrated steel manufacturers in West Bengal.
The group operates multiple sponge iron, steel and power units and markets products under brands such as 'Thermocon' and 'Elegant'. None of the companies of the Shakambhari Group are listed on any stock exchange.
The total value of the attached properties is Rs 100.44 crore, the ED said.
With this latest order, the total value of assets attached so far stands at Rs 322.71 crore and the proceeds of crime established in this case stands at Rs 2,742 crore, it said.
The ED is probing into an alleged syndicate engaged in illegal excavation and large-scale pilferage of coal in leasehold areas of Eastern Coalfields Limited (ECL).
The "illegally" excavated coal was distributed to various factories in West Bengal with the active assistance of the local administration.
Anup Majee alias Lala, who was arrested by the agency a few years back, is stated to be the kingpin of the syndicate.
"Majee introduced an illegal transport challan or pad, commonly known as the "Lala pad." This illegal transport challan functioned as a tax invoice issued in the name of non-existent firms," the ED claimed.
The agency charged that the syndicate operated an "underground" hawala network to transfer the proceeds of crime in cash, bypassing formal banking channels and regulatory oversight.
"In a typical transaction, the recipient would share a unique code with the sender, usually the serial number of a Rs 10 or other denomination currency note. This serial number functioned as the transaction's authentication key," it said.
Probe has found certain beneficiary companies in the steel and iron sector purchased illegally excavated coal in cash, the ED said, adding that the offence involves "multiple" layers and "complex" financial transactions designed to conceal and disguise "illicit" funds.
The agency is systematically "unravelling" each layer to trace the ultimate beneficiaries, identify additional proceeds of crime, and detect other persons involved in laundering illegally generated funds, the ED said.
"The ED reiterates its commitment to taking stringent action against economic offenders involved in illegal mining and money laundering activities. Such offences harm the public at large, as natural resources are public assets held in trust for the people of the country," the agency said in the statement.