Guwahati/Shillong: The Directorate of Enforcement (ED) on Thursday carried out raids in multiple locations in Assam and Meghalaya as part of a money-laundering investigation linked to alleged illegal coal mining and coke plants in the northeastern state.
In a coordinated operation, the ED’s Shillong Sub Zonal Office executed searches across 15 premises spanning Jadigittim and Nongalbibra in Meghalaya, besides Jogighopa , Margherita and Guwahati in Assam.
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The raids, carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, were initiated based on an FIR registered in Shillang, Meghalaya.
The FIR encompassed various sections of the Indian Penal Code (IPC), 1860, the Mines and Minerals (Development and Regulation) Act, 2015, the Environment (Protection) Act, 1986, the Explosive Substances Act, 1883, and the Benami Transaction (Prohibition) Act, 1988.
During the extensive search operations, the ED seized a substantial amount of digital devices and incriminating documents, including crucial diaries and ledgers.
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Statements from key individuals involved in the illegal activities were also recorded. These initial findings have revealed a disturbing reality: despite a ban on mining activities in the region for the past decade, illegal “rat hole” mining continues unabated under extremely hazardous and inhumane conditions, completely disregarding the safety of the miners.
The ED investigation uncovered that in the Jadigittim area of South Garo Hills, managers, “sardars,” and laborers were actively engaged in illegal coal extraction using rudimentary tools.
Shockingly, approximately 20 illegal mines were found to be operating in the Era Aning and Goreng areas. Several laborers found at these sites have been handed over to the local police for further investigation regarding their identities and nationalities, ED said.
Further probing by the ED has exposed a well-oiled syndicate comprising individuals from both Meghalaya and Assam.
This network allegedly facilitated the seamless movement of illegally mined coal across the Meghalaya-Assam border, bypassing any checks or restrictions.
“Once the trucks crossed into Assam, fabricated documents were prepared to falsely portray the coal as legally sourced. The syndicate reportedly charged a hefty commission ranging from Rs 1.27 Lakh to Rs 1.5 Lakh per truck from the mine owners for this “patronage,” all transacted in cash,” the agency said.
“The illegally mined coal was then stored in depots located in Jogighopa, Assam, before being transported to various industries, including cement plants, brick kilns, iron and steel manufacturers, and illegal coke plants. Some of the illicitly obtained coal was also directly routed from the depots to illegal coke plants within the North-Eastern Region,” it said.
The ED investigation has further revealed the involvement of individuals operating the depots in Jogighopa in the creation of fake bills and invoices. These fraudulent documents were used to falsely indicate that the illegal coal was purchased from legitimate mines in Assam, thereby attempting to legitimize the illicit transactions.
The majority of these transactions were conducted in cash, with fake invoices generated to provide a veneer of legitimate business dealings.
The ED also found that the substantial cash generated through this illegal enterprise was collected by the syndicate and stored at the residences of designated cash handlers.
Searches at these locations led to the seizure of diaries meticulously detailing cash inflows and outflows. Furthermore, it was found that coal mine owners and syndicate members coordinated with illegal coal mine operators in Marghrita, Tinsukia, to create a false impression that the coal originated from legally sanctioned mines.
Analysis of the seized documents and the testimonies of managers, mine owners, and laborers has revealed the staggering scale of the illegal mining operation. An estimated 5 to 7 trucks, each carrying 12 to 16 tonnes of illegally mined coal, were being loaded daily from each mine in the Era Aning and Goreng area of South Garo Hills.
This translates to a conservative estimate of approximately 1200 tonnes of illegal coal being extracted daily from this region alone. Despite the risks and illegality, mine owners were reportedly earning a net profit of Rs 5,000 to Rs 10,000 per truck after covering all operational expenses.
During the searches, the ED seized a significant amount of unaccounted cash amounting to Rs 1.58 Crore, along with various digital devices such as laptops and mobile phones. Additionally, two high-end vehicles suspected to have been purchased using the proceeds of this illegal activity were also confiscated.
The ED stated that further investigation is currently underway to unravel the full extent of this illegal coal mining syndicate and to identify all individuals involved in this large-scale money laundering operation.