The Central Bureau of Investigation (CBI) has taken the rare step of booking one of its own officers, an Assistant Sub-Inspector (ASI) posted in Bhubaneswar, for allegedly operating a sophisticated protection and extortion racket within Odisha's lucrative coal sector. This case highlights deep-rooted corruption issues in the state's mineral-rich regions.
CBI ASI and MCL Officer Face Multiple Charges
The agency's New Delhi office has registered a formal case under serious charges including criminal conspiracy, cheating, obtaining bribes by a public servant, and bribing of a public servant by a private individual. The accused ASI has been identified as Prashanta Kumar Pallei, while the CBI has also booked Sarada Prasad Sethy, who serves as a dispatch officer with Mahanadi Coalfields Limited (MCL), a crucial subsidiary of Coal India Limited.
How the Alleged Extortion Racket Operated
According to the CBI's First Information Report (FIR) registered on January 28, 2026, Sethy allegedly collected substantial bribe money from various coal transporters and lifters. In return for these illicit payments, he would provide them with favorable treatment by either dispatching extra loads of coal or supplying high-grade coal while fraudulently recording it as low-grade material.
The FIR reveals that Sethy was allegedly running this corrupt operation by regularly paying protection money to CBI ASI Prashanta Kumar Pallei. The CBI officer is accused of accepting these bribes on the pretext of shielding Sethy from investigative agencies, including the CBI itself, while also extending other unofficial favors.
Family Bank Accounts Used for Money Collection
Investigators have uncovered that the accused ASI allegedly collected protection money through bank accounts belonging to family members, including his wife and son. CBI sources indicate there is substantial evidence of multiple suspicious transactions occurring between June and September 2025, suggesting a systematic pattern of corruption.
Broader Implications and Additional Allegations
The case takes an even more serious turn with allegations that Pallei ensured Sethy's posting at the Garjanbahal open cast project in the Basundhara Area by threatening the concerned general manager. Furthermore, during preliminary inquiries, the agency discovered that the accused ASI had instructed Sethy to gather compromising information about senior officials from other projects and details about major contractors and coal-lifters operating in the area.
Officials stated this information was allegedly intended to be used to trap these individuals and extract money from them, suggesting the racket had ambitions to expand its corrupt operations beyond the current scope.
This case represents a significant embarrassment for India's premier investigative agency and raises serious questions about internal oversight mechanisms within law enforcement organizations operating in resource-rich regions like Odisha.
