Coal smuggling scam: Multiple shell companies used for diversion of proceeds of crime under ED scanner

Kolkata, Nov 25 The Enforcement Directorate (ED) is investigating the roles of multiple shell companies behind the diversion of the proceeds of crime in the multi-crore coal smuggling scam spread across West Bengal and Jharkhand.

The ED officials secured this information after seizing incriminating documents during simultaneous raid and search operations at as many as 44 locations in West Bengal and Jharkhand on November 21.

Sources aware of the development said examination of the incriminating documents seized by the ED officials revealed that two patterns were followed to divert the proceeds of the crime through these shell companies.

In the first pattern, huge amounts were deposited in cash and in phases into the bank accounts of these shell companies, and the same amount was withdrawn from those bank accounts on the same day and within hours of the time of deposit.

The second pattern was relating to the purchases of huge plots of land in various parts of West Bengal and Jharkhand in the names of these shell entities.

Sources said that the examination of the incriminating documents seized by the ED officials last week also revealed the involvement of some politically influential persons both in West Bengal and Jharkhand.

Of the 44 locations where the ED officials, along with Central Armed Police Forces (CAPF) personnel, conducted simultaneous raids and search operations last week, 24 were in West Bengal, and 20 were in Jharkhand. The main charges in the cases are large-scale illegal mining, theft, transportation, storage, and sale of coal.

During the raid and search operations, cash and jewellery/gold worth over Rs 14 crore, along with a substantial volume of incriminating evidence, including various property deeds linked to the coal syndicate and agreements related to the sale and purchase of land, and several digital devices, books of accounts of entities controlled by the said persons were seized.

The ED and the Central Bureau of Investigation (CBI) have been conducting parallel probes in the multi-crore coal smuggling case. Recently, the CBI informed the court that the investigation in the matter will be wound up soon.

The latest raids by the ED officials at multiple locations in West Bengal and Jharkhand come just a few days after the CBI’s submission at the court.

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