Bhubaneswar: Acting against individuals involved in illegal sand and blackstone mining, the ED conducted searches at more than 25 premises across Odisha’s Ganjam district and seized Rs 2.63 crore in cash and incriminating documents, an official said on Sunday.
The Directorate of Enforcement (ED), Bhubaneswar Zonal Office, carried out the co-ordinated search operation on January 16 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
Those who faced the action included contractors and proprietors associated with country liquor (bhati) operations, the ED said.
During the search, cash amounting to Rs 2.63 crore, along with several incriminating documents, substantial property records, and agreements including power agreements and mining leases executed by the individuals in question were found and seized, it said.
Several high-end benami vehicles were unearthed in the search action, which were obtained through the proceeds of crime, it said.
The premises covered were linked to brokers and syndicates having serious criminal antecedents, and other connected business partners, the ED said.
These included persons who, by using their muscle power, were forcibly conducting illegal mining and sale of minor minerals by exploiting and terrorising people in their areas, it said.
The federal probe agency initiated investigation on the basis of FIRs registered against various sand syndicates who used to carry out illegal mining and transportation (smuggling) of minor minerals in Ganjam district by using false and fabricated Y forms (transit permits).
Several members of the syndicate have FIRs registered against them in Ganjam district, involving serious crimes such as murder, kidnapping, physical assault, forgery, cheating and extortion, the ED said.
Further, the CAG has also flagged rampant illegal mining along the riverbeds of Rushikulya, Bahuda and Bada in Ganjam district, causing huge loss to the government exchequer, it said.
The modus operandi indicated that mining leases were obtained in the names of various leaseholders unlawfully and forcibly by syndicate associates, by offering a commission at a predetermined rate to original allottees, according to an official statement.
Mining licences issued in the names of other leaseholders are not transferable and are prohibited under law.
This unauthorised usage of licences, which were in the names of other leaseholders, allowed members of the syndicate to extract more sand or blackstone than permitted by government regulations, the ED said.
A majority of minerals obtained through unauthorised mining were traded in the grey market, typically through cash payments.
The modus operandi also included use of forged Y forms (transit passes) to sell illegally obtained minerals in the grey market.
The proceeds generated from the illegal mining were dealt in cash, which was channelised through country liquor and other businesses, the ED said.
Most of these transactions are unaccounted and unrecorded, causing huge losses to the government, it said.
IANS
