CBI Files FIR Against ASI and MCL Officer in Odisha Coal Corruption Case
The Central Bureau of Investigation (CBI) has taken significant action by booking an Assistant Sub-Inspector (ASI) posted at its Bhubaneswar Anti-Corruption Branch (ACB) along with an officer from Mahanadi Coalfields Limited (MCL) in Odisha's Sundargarh district. The duo stands accused of orchestrating and managing an extensive illegal money collection racket that specifically targeted coal transporters operating in the region.
Details of the Alleged Criminal Nexus
According to the First Information Report (FIR) registered on January 28, ASI Prashanta Kumar Pallei is alleged to have formed a criminal partnership with Sarada Prasad Sethy, who served as a dispatch officer at MCL's Garjanbahal opencast project located in the Basundhara area. The FIR outlines a systematic scheme where the two individuals collaborated to illegally extract money from various coal transporters and lifters involved in the coal supply chain.
Sethy is accused of misusing his official position within MCL to collect bribes, while Pallei allegedly provided protection and facilitated other favours to ensure the smooth operation and continuity of their illicit racket. CBI sources have revealed that Sethy routinely collected money from transporters by offering them illegal benefits. These benefits included dispatching excess quantities of coal beyond permitted limits or supplying higher-grade coal while deliberately billing it as a lower, cheaper grade.
Mechanics of the Illegal Operation
In return for these unauthorized favours, the coal transporters allegedly made regular payments to Sethy. The FIR further alleges that Sethy managed to secure and retain his strategic posting at the Garjanbahal project with the direct assistance of ASI Pallei. According to the case details, Pallei allegedly received regular payoffs from Sethy in exchange for multiple forms of protection and facilitation.
These exchanges included shielding Sethy from potential enforcement actions, extending professional favours such as ensuring a "favourable posting," intimidating business rivals, and even facilitating the allotment of a company quarter for Sethy's use. The FIR contains the serious allegation that Pallei threatened a senior MCL official to secure Sethy's desired posting at the project site.
Documented Transactions and Communications
Investigators have cited several specific alleged financial transactions and recorded conversations between Pallei and Sethy that occurred between June and September of the previous year. These documented interactions provide a detailed glimpse into their modus operandi:
- On June 13, 2025, Pallei allegedly demanded Rs 1 lakh from Sethy and instructed that the amount be transferred directly to his son's bank account.
- Shortly after this demand, he allegedly sought his son's PAN card details and suggested "finding faults" with the Mahalaxmi Area general manager to "set things right." Pallei assured Sethy that he would personally resolve various issues, including the matter of quarter allotment.
- The FIR further claims that on July 16, 2025, Pallei asked Sethy to identify "big contractors" and mentioned arranging a staff member to assist a CBI DSP in Bhubaneswar. He indicated that the salary for this position would be paid by a private firm. Acting on this instruction, Sethy allegedly arranged for a man to be placed in this role with a payment of Rs 25,000 per month.
- On July 17, Rs 1 lakh was credited to Pallei's State Bank of India account from a coal transporter. On the same day, Rs 70,000 was transferred from this account to the bank account of the ASI's wife.
Further Allegations of Abuse of Power
Pallei faces additional accusations of seeking confidential tender-related information from an MCL official responsible for handling guest houses. This included requesting "secret" details about catering bids, and he allegedly warned the officer of serious consequences for non-compliance with his demands.
The FIR contains another serious allegation: on August 22, while Pallei was on duty handling a trap case, he directed the brother of an arrested accused to contact a specific advocate, suggesting potential interference in legal proceedings.
In early September, after Sethy complained that his general manager had reprimanded him during a video conference over allegations of favouring ruling party leaders in coal transport matters, Pallei allegedly assured him that the GM "cannot remove" him and could be "called to Bhubaneswar," implying the use of influence. The two later met in person in Rourkela on September 12, 2025.
The CBI has alleged in its FIR that Pallei received what it terms "protection money" through various channels—both in physical cash and via bank transfers to accounts belonging to his family members and other associates. This case highlights concerning allegations of corruption within systems meant to prevent it, involving both a law enforcement officer and a public sector enterprise official in Odisha's crucial coal mining sector.
