Ganjam: The Directorate of Enforcement (ED), Bhubaneswar Zonal Office, has seized cash, high-value assets, and incriminating documents after conducting a large-scale search operation across Ganjam district on Friday. The action, taken under the Prevention of Money Laundering Act, 2002, targeted individuals allegedly linked to illegal sand and black stone mining networks as well as country liquor (Bhati) operators.
Officials searched more than 25 premises connected to suspected miners, transporters, contractors, and liquor operators. According to an agency press release, cash totalling Rs2.63 crore was recovered along with property records, power agreements, and mining lease documents allegedly executed by those involved. The ED stated that several high-end benami vehicles believed to have been purchased from the proceeds of crime were also seized.
Investigators said the properties raided are linked to brokers and syndicate members with criminal backgrounds. The press note alleges that these networks used muscle power to control illegal mineral extraction and sales while intimidating residents.
The ED’s investigation stems from an ECIR registered after multiple FIRs named various individuals engaged in unlawful sand mining and smuggling of minor minerals in Ganjam district. Officials said the networks relied on forged and fabricated transit permits, including fake Y-Forms, to move illegally mined material.
The press release added that several persons associated with the rackets already face criminal cases involving serious charges such as kidnapping, murder, cheating, extortion, physical assault, forgery, and illegal liquor trade. Audit observations by the Comptroller and Auditor General have earlier flagged widespread unauthorised mining in riverbeds, including Rushikulya, Bahuda, and Bada, reportedly causing heavy losses to the state exchequer.
According to the ED, members of the syndicate acquired mining leases not directly in their own names but through various leaseholders who were coerced or unlawfully induced to permit mineral excavation in exchange for commission. Since such leases are non-transferable under law, investigators say the arrangement enabled syndicate members to extract quantities far beyond what government rules allow.
The agency alleges that the illegally mined material was routed through grey markets and sold largely for cash, supported by forged passes. The enforcement action marks one of the largest anti-illegal mining crackdowns reported from the district in recent years.
Further investigation into proceeds, beneficiaries, and financial trails is ongoing.
