ED Raids Uncover Rs 2.5 Crore Cash, Benami Assets in Ganjam Mining Mafia Crackdown
Enforcement Directorate sleuths made a significant discovery on Friday. They found approximately Rs 2.5 crore in unaccounted cash during searches across Ganjam district. The cash was stashed inside an almirah at properties connected to the sand and stone mining mafia.
Targets Include Local BJD Politician
The raids targeted a broad network of suspects. This network included local BJD politician Hrusikesh Padhy, unauthorized mineral operators, brokers, gangsters, and business partners with criminal records. Some suspects held licenses but exceeded permitted extraction limits to mint money. The BJD has not commented on the ED action against its party member.
ED sources confirmed searches at residences and commercial establishments of Bhagwan Sahoo, Krupasindhu Muduli, Santosh Dalai, Hrusikesh Padhy, and his son Sachin Padhy. The substantial cash recovery came from Dalai, who serves as an investor and business partner of Muduli. Attempts to reach the suspects for comment were unsuccessful.
Proceeds from Illegal Mining Operations
ED officers suspect the seized cash represents proceeds from illegal extraction and sale of minor minerals like sand and black stone. They believe the accused deliberately conducted transactions in cash to evade tax scrutiny. This operation follows a Comptroller and Auditor General report months earlier. The CAG flagged rampant illegal mining along the Rushikulya, Bahuda and Bada Nadi riverbeds, warning of massive losses to the state exchequer.
An ED source described the findings vividly. "We recovered an almirah stuffed with bundles of Rs 500 notes running into crores," the source said. "We also found benami luxury vehicles and documents related to properties, agreements, and mining leases executed by the accused."
Operation Under PMLA Targets 'Bahubalis'
The searches were conducted under the Prevention of Money Laundering Act, 2002. They spanned multiple locations across Ganjam district. An ED statement noted that suspects, often called 'bahubalis' locally, used muscle power to control illegal mining operations forcibly. These individuals exploited communities and intimidated residents to maintain their grip on the illicit trade.
ED officers suspect collusion between local revenue staff, mining authorities, and police. They are investigating how large-scale mining occurred without valid leases. The crackdown stems from an enforcement case information report registered based on several FIRs against the sand mafia in the district. These groups allegedly used fabricated "Y forms" to transport illegally mined minerals and avoid detection.
The operation highlights ongoing efforts to curb illegal mining and money laundering activities in the region. It underscores the challenges authorities face in dismantling entrenched networks that operate with impunity.
