ED Intensifies Coal Scam Probe with Major Asset Attachment
In a significant escalation of its investigation into the West Bengal coal mining scam, the Enforcement Directorate (ED) on Wednesday attached assets worth Rs 160 crore belonging to Shyam Ferro Alloys, a company controlled by Sanjay Agarwal of the Shyam group. This action comes just one day after the arrest of I-PAC promoter-director Vinesh Chandel in Delhi.
Complex Financial Web Unraveled
The attached assets include corporate bonds and alternate investment funds, bringing the total value of attachments in this case to over Rs 482 crore. The ED stated that the offense involves multiple layers of complex financial transactions specifically designed to conceal the origin and ownership of illicit funds.
The agency emphasized it is continuing to unravel these intricate layers to identify ultimate beneficiaries, trace additional proceeds of crime, and zero in on all persons involved in money laundering activities.
I-PAC Under Scrutiny
The ED's probe has now shifted focus to the Indian Political Action Committee (I-PAC), with the agency alleging in its remand note for Chandel that the organization received significant proceeds of crime from illegal coal mining in leasehold areas of Eastern Coalfields Ltd in West Bengal.
While the agency has not named the specific political party involved, it has pointed to an alleged nexus to use unaccounted funds for election expenses.
Documentary Evidence Seized
During searches conducted at I-PAC premises on April 2, the ED seized incriminating documents related to sham transactions and election expenditure. These documents were also reportedly found at the office of a political party and were corroborated by statements recorded by investigating officers.
The agency stated: "Substantial amounts were credited to I-PAC accounts from various entities without any genuine business purpose, establishing that the company acted as a conduit."
Hawala Channels and False Statements
According to the ED, unaccounted cash was routed through hawala channels, with statements from persons linked to I-PAC recorded as evidence. During questioning, Chandel allegedly gave false and misleading statements, denying cash transactions and misrepresenting the company's activities.
Vinesh Chandel, a founding director of I-PAC since 2015, is an equal shareholder with Pratik Jain and Rishi Raj and has been described as a key decision-maker in both operational and financial matters of the organization.
Investigation Continues
The ED's ongoing investigation seeks to uncover the full extent of the financial network allegedly used to launder money from illegal coal mining operations. The agency remains committed to following the money trail and identifying all individuals and entities involved in what appears to be a sophisticated money laundering operation with political connections.
