The Enforcement Directorate (ED) has taken decisive action against a Punjab-based distillery accused of causing massive environmental damage. The federal agency's Jalandhar zonal office has provisionally attached immovable properties worth Rs 79.9 crore belonging to Malbros International Private Limited, the owner of the controversial Zira distillery. This move is part of an ongoing money-laundering investigation stemming from alleged violations of environmental laws.
The Core Allegations: Reverse Boring and Groundwater Contamination
According to the ED, the investigation was launched based on a criminal complaint filed by the Punjab Pollution Control Board (PPCB). The central allegation is that the company's industrial unit in Mansoorwal village, Zira, Ferozepur district, violated the Water (Prevention and Control of Pollution) Act, 1974. The primary method of violation was the persistent and covert injection of untreated industrial effluents into deep aquifers using a technique called reverse boring.
The agency stated that the unit was involved in generating proceeds of crime by deliberately polluting groundwater. The illegal activities included not only reverse boring but also the repeated discharge of wastewater onto land, drains, and an adjacent sugar mill. The ED's statement was stark, noting that the daily functioning of the distillery involved persistent illegal discharge, causing "large-scale, irreparable ecological damage." This damage manifested as water pollution, health hazards, crop loss, cattle deaths, and serious health impacts for residents in surrounding villages.
A Long-Standing Battle and Legal Proceedings
The issue first came to dramatic light in July 2022. Villagers digging a borewell at a religious site detected a foul odour emanating from groundwater as deep as 600 feet. Their investigation led them to believe the contamination was due to the distillery's practice of dumping waste via reverse boring, sparking immediate and sustained protests.
Residents from several nearby villages, united under the banner of 'Sanjha Zira Morcha', have been demanding the complete shutdown and dismantling of the distillery. Although the plant's operations were suspended on July 24, 2022, the protest has continued for over three years, with the community seeking a permanent resolution.
The legal battle is being fought on multiple fronts: in a Ferozepur court, the Punjab and Haryana High Court, and the National Green Tribunal. Scientific samples collected by the Central Pollution Control Board (CPCB) and committees formed by the Punjab government confirmed that water and soil were contaminated, with various heavy metals exceeding permissible limits. Based on these findings, Punjab Chief Minister Bhagwant Mann announced at least twice that the factory would not be allowed to reopen.
Recent Actions and Contested Claims
In a significant earlier action, the ED had conducted searches at six locations on June 16 last year, seizing Rs 78.15 lakh in cash from the company's premises and the homes of its directors. The recent provisional attachment of land, buildings, and plant machinery worth Rs 79.9 crore is a major escalation in the financial investigation.
Meanwhile, Malbros International has recently announced plans to dismantle the distillery plant. However, it has argued that it should be permitted to run its ethanol project, which it claims was set up under a Zero Liquid Discharge (ZLD) system. This claim is strongly contested by the Sanjha Zira Morcha and a pro-environment organization, the Public Action Committee (PAC), who remain skeptical of the company's assurances given the history of violations.
The case highlights the severe consequences of industrial pollution on rural communities and the increasing use of financial investigation tools like the Prevention of Money Laundering Act (PMLA) to tackle crimes against the environment.
