Bhubaneswar: The Bhubaneswar Zonal Office of the Enforcement Directorate (ED) raided over 25 places in Odisha's Ganjam district on January 16 under the provisions of the Prevention of Money Laundering Act (PMLA) and seized Rs 2.63 crore cash and several benami vehicles in this connection, the agency said in a press release today.

Over 175 officials from six states took part in the operation, targeting properties linked to individuals allegedly involved in illegal sand and black stone mining, country liquor (Bhati) operations, contractors, brokers, and other associated business partners.

Focus on illegal mining syndicates

According to the ED, the searches covered the premises of syndicates accused of forcibly conducting illegal mining of minor minerals by using muscle power and terrorising local people. These syndicates are suspected to be involved in the illegal extraction and transportation of sand and black stone within Ganjam and to other districts and states.

The investigation was initiated after multiple FIRs were registered against members of these syndicates for illegal mining and transportation using forged and fabricated Y Forms, which are transit permits.

CAG findings and criminal antecedents

The ED said its probe was also based on reports of the Comptroller and Auditor General (CAG), which flagged rampant illegal mining along the riverbeds of Rushikulya, Bahuda and Bada rivers in Ganjam district. The illegal activities allegedly caused huge losses to the government exchequer.

Several members of the syndicates reportedly have serious criminal cases registered against them, including charges of murder, kidnapping, physical assault, forgery, cheating and extortion.

Modus operandi revealed

The ED investigation revealed that mining leases issued in the names of genuine leaseholders were unlawfully and forcibly taken over by syndicate members. This was allegedly done under the guise of paying commissions at fixed rates.

As mining licences are non-transferable under law, their unauthorised use allowed syndicate members to extract far more sand and black stone than permitted. A large portion of the illegally mined minerals was sold in the grey market through cash transactions, often using forged Y Forms.

The proceeds of crime were allegedly routed through cash dealings, including country liquor businesses and other ventures, making most transactions unaccounted and unrecorded.

Cash, documents and benami vehicles seized

Following the searches, the ED recovered cash amounting to Rs 2.63 crore. Officials also seized several incriminating documents, property records, agreements, powers of attorney and mining lease papers linked to the accused.

In addition, several high-end benami vehicles, suspected to have been purchased using proceeds of crime, were unearthed during the operation.

The ED said further investigation into the case is underway.