New Delhi: The Supreme Court on Tuesday issued notice on an Enforcement Directorate (ED) plea seeking cancellation of anticipatory bail granted to alleged coal smuggling kingpin Anup Majee alias “Lala” in a money laundering case linked to the multi-crore illegal coal mining racket in West Bengal.
A Bench of Justices Vikram Nath and Sandeep Mehta sought Majee’s response on the ED’s challenge to the order of the Delhi High Court granting him anticipatory bail in proceedings arising out of an ECIR registered under the Prevention of Money Laundering Act (PMLA).
Appearing for the ED, Additional Solicitor General S.V. Raju submitted that Majee was the “main person” and “kingpin” behind the alleged illegal excavation and theft of coal from leasehold areas of Eastern Coalfields Limited (ECL), involving proceeds of crime worth around Rs 2,700 crore. The ED argued that Majee had absconded and initially failed to cooperate with the investigation despite repeated summons issued under Section 50 of the PMLA.
On the other hand, senior advocate Siddharth Dave, appearing for Majee, opposed the plea and contended that his client had joined the investigation on multiple occasions and that custodial interrogation was no longer necessary.
The ED’s special leave petition (SLP) challenges the Delhi High Court’s finding that the “twin conditions” under Section 45 of the PMLA stood satisfied in Majee’s case.
Granting anticipatory bail earlier, the Delhi High Court had observed that the investigation had continued for nearly five years and that the ED had not attempted to arrest Majee despite summoning him several times.
The High Court had also recorded that Majee appeared before the agency on 13 occasions and provided documents sought during the investigation.
In its June 13 order, a single-judge Bench of Justice Tejas Karia had observed that “there are reasonable grounds for believing that the Applicant is not guilty of the alleged offence under PMLA,” adding that the ED had already filed a chargesheet and supplementary chargesheet without taking steps to arrest him for custodial interrogation.
The order had further held that it was “not borne out of the record” that Majee violated conditions imposed either by the Supreme Court or the special court while enjoying interim protection. According to the ED, Majee was one of the “main organisers” of the syndicate allegedly engaged in illegal mining and transportation of stolen coal in active connivance with officials of ECL, CISF, Railways and other departments.
The federal anti-money laundering agency claimed that coal worth Rs 2,742.32 crore was misappropriated from ECL leasehold areas through illegal excavation and pilferage. The ED investigation has alleged that the illegal mining network used a fake transport challan system known as the “Lala pad”, through which illegally mined coal was moved across West Bengal.
The agency also claimed that proceeds of crime were routed through hawala channels and shell entities to conceal the origin of funds.
Last month, the ED said it had provisionally attached assets worth Rs 159.51 crore in the case, taking the total value of attached assets to Rs 482.22 crore. The agency had stated that beneficiary companies knowingly purchased illegally mined coal in cash and projected the proceeds of crime as legitimate income.
The ED also alleged that shell companies and dummy directors were used to route funds generated from illegal coal excavation.
The coal smuggling case, initiated in 2020, pertains to alleged illegal excavation and theft of coal from ECL leasehold areas in West Bengal and neighbouring regions. The ED has also alleged links between the proceeds of crime and the political consultancy firm I-PAC through a purported hawala trail.
The coal smuggling investigation also sparked a major political controversy in West Bengal after the ED raided IPAC’s Kolkata office.
During the operation, then Chief Minister Mamata Banerjee arrived at the premises, while the ED later claimed in court that documents and electronic devices had been removed from the site during the raids.
(IANS)
