New Delhi ED Conducts Searches Over Illegal Coal Mining In Bengal

The Enforcement Directorate (ED) intensified its investigation into alleged illegal coal mining and associated money laundering in West Bengal, executing coordinated searches this week at approximately 10 locations tied to an extensive central probe. Actions under the Prevention of Money Laundering Act (PMLA) targeted properties linked to several individuals and a serving state police officer, reflecting deepening scrutiny of illicit resource extraction practices that have long challenged governance and environmental sustainability in India’s coal‑rich belt.

The searches are part of a parallel inquiry linked to a broader probe initiated after the Central Bureau of Investigation (CBI) flagged systematic pilferage and unregulated extraction of coal in areas under Eastern Coalfields Limited (ECL) leaseholds — particularly in industrial districts such as Asansol and adjoining regions. The ED’s focus is on tracing the financial trail of alleged proceeds of crime, property acquisitions and transaction records that may conceal unlawful gains from unlicensed mining and black‑market sales.Sources familiar with the investigation say that the alleged operation involved not only extraction but also illegal transportation of coal using forged documentation — a pattern that, if proven, could imply significant revenue leakage from India’s regulated resource management framework. Proceeds are suspected to have been channelled through complex financial layers to mask their origin, prompting the ED inquiry as part of efforts to disrupt money laundering linked to natural resource exploitation.

Economic analysts note that illegal mining and pilferage undermine both fiscal and industrial efficiency, particularly in states where coal remains a cornerstone fuel for power generation, steelmaking and cement production. Beyond central levies and royalties lost to the exchequer, unregulated mining can distort market pricing, compromise supply chain transparency and increase operational risks for legitimate producers.The issue also carries environmental and social costs. Unlicensed coal extraction is typically accompanied by inadequate land rehabilitation and environmental safeguards, intensifying soil degradation, water contamination and habitat disruption in mining districts. Urban planners and environmental scientists warn that such practices can erode gains from sustainable urbanisation and climate action, especially as India balances energy security with emissions reduction commitments.

Opposition voices within West Bengal have framed the operations politically, particularly as they precede a major state assembly election cycle. A senior political spokesperson raised concerns about the timing of enforcement actions, arguing that they clash with statutory safeguards and electoral sensitivities. However, central investigators maintain that legal processes are being executed in accordance with PMLA provisions and judicial oversight.The ED’s search operations follow earlier actions across Jharkhand and West Bengal last year, where coordinated raids on more than 40 locations targeted alleged syndicates involved in coal theft and illicit transport — underlining long‑running challenges within India’s mineral governance architecture.

As the inquiry progresses, authorities are expected to examine digital records, bank statements, property documents and communication logs to map the network of alleged unlawful activity. For urban and industrial stakeholders, the outcome of this investigation could influence regulatory reforms in the energy and mining sector, with potential implications for governance standards, compliance frameworks and the integrity of coal supply chains that support critical infrastructure across the country.

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New Delhi ED Conducts Searches Over Illegal Coal Mining In Bengal