CBI Registers Case Against ASI and MCL Officer in Odisha Coal Corruption Scandal
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 Ltd (MCL) in Sundargarh district. The case involves allegations of operating an extensive illegal money collection racket that specifically targeted coal transporters and lifters 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 accused of establishing a criminal nexus with Sarada Prasad Sethy, who serves as a despatch officer at MCL's Garjanbahal open cast project located in the Basundhara area. The investigation reveals that this partnership was designed to systematically collect illegal payments from various stakeholders involved in coal transportation.
Sethy is alleged to have abused his official position to extract bribes from coal transporters, while Pallei reportedly provided protection and other favors to ensure the smooth operation of these illicit activities. The CBI conducted raids on Friday at premises connected to Sethy's workplace as part of their ongoing investigation into this matter.
Modus Operandi of the Illegal Operations
CBI sources have disclosed that Sethy routinely collected payments from transporters by offering them illegal benefits. These benefits included the despatch of excess coal beyond permitted limits and the supply of higher-grade coal while billing it as lower-grade material. In return for these favors, transporters allegedly made regular payments to Sethy, creating a continuous cycle of corruption.
The FIR further alleges that Sethy managed to secure and retain his posting at the Garjanbahal project with the active assistance of ASI Pallei. This collaboration extended beyond mere protection, with Pallei allegedly receiving regular payoffs from Sethy in exchange for specific favors.
Specific Allegations Against the Accused Officials
Investigators have documented multiple alleged transactions and conversations between Pallei and Sethy that occurred during the period from June to September of last year. The evidence includes:
- On June 13, 2025, Pallei allegedly demanded Rs 1 lakh from Sethy and requested that the amount be transferred directly to his son's bank account.
- Days later, Pallei sought his son's PAN details and suggested "finding faults" with the Mahalaxmi area general manager to "set things right," while assuring Sethy he would personally resolve various issues including quarter allotment.
- On July 16, 2025, Pallei asked Sethy to identify "big contractors" and mentioned the need to arrange a staffer to assist a CBI DSP in Bhubaneswar, with the salary to be borne by a private firm. Sethy allegedly deputed a man on a Rs 25,000 per month arrangement in response.
- On July 17, Rs 1 lakh was credited to Pallei's State Bank of India account from a coal transporter, with Rs 70,000 transferred the same day to the ASI's wife, according to the FIR.
Additional Serious Allegations
The investigation has uncovered further serious allegations against the accused officials:
- Pallei is accused of seeking confidential tender-related information from an MCL official handling guesthouses, including "secret" catering bid details, and allegedly warning the officer of consequences for non-compliance.
- On August 22 last year, while on duty in a trap case, Pallei directed the brother of an accused to contact a particular advocate.
- In early September, after Sethy complained that the general manager had reprimanded him during a video conference over allegations of favoring ruling party politicians in coal transport, Pallei allegedly assured him that the GM "cannot remove" him and could be "called to Bhubaneswar."
- The two later met in Rourkela on September 12, 2025, as part of their ongoing coordination.
CBI has alleged that Pallei received "protection money" both in cash and through bank transfers to accounts of his family members and other associates, indicating a systematic pattern of corruption.
Legal Framework and Charges
The CBI has registered a comprehensive case under multiple legal provisions. The charges include sections 61(2) for criminal conspiracy and 318(4) for cheating under the Bharatiya Nyaya Sanhita (BNS), along with various sections of the Prevention of Corruption Act. This combination of charges reflects the serious nature of the alleged offenses and the systematic corruption that investigators believe was taking place.
This case highlights the ongoing challenges in combating corruption within critical sectors like coal transportation and raises important questions about oversight mechanisms in both law enforcement and public sector enterprises. The investigation continues as authorities work to uncover the full extent of this alleged corruption network.
