ED Conducts Raids in High-Profile Coal Scam Investigation
The Enforcement Directorate (ED) raided multiple locations in West Bengal and Delhi on January 8, 2026, as part of an investigation into a lucrative coal theft scam. The raids targeted offices linked to the Indian Political Action Committee (I-PAC), an election management firm known for its role in campaigning for various political parties.
This operation comes amidst allegations of illegal coal excavation and theft from Eastern Coalfield Limited (ECL) in West Bengal, purportedly orchestrated by a statewide syndicate. The agency’s investigation follows a 2020 First Information Report (FIR) filed by the Central Bureau of Investigation (CBI), unveiling a complex web of corruption involving both private entities and government officials.
Background of the Coal Scam
According to the FIRs filed by the CBI and the ED, the mining scam suggests that the syndicate, led by kingpin Anup Majee, engaged in extensive theft operations throughout the state. Evidence suggests illicit coal was sold to factories across districts like Bankura, Bardhaman, and Purulia. The proceeds from these operations were reportedly funneled through a central hub known as “Bhamuria Number 1,” maintained by Majee’s accountant, Niraj Singh.
As per the ED’s findings, the illicit activity generated a staggering ₹2,742.32 crore between December 2017 and October 2020. Of this, the agency claims that approximately ₹20 crore was transferred to I-PAC to fund its operations in Goa between 2021 and 2022, allegedly moved through a hawala network.
Details of the Financial Transactions
Money Transfer Mechanism
The complex arrangement for transferring these funds involved multiple layers, as detailed in the ED’s Calcutta High Court petition. Funds originating from Kolkata reportedly moved through a series of intermediaries, including financier Jitender Mehta and several others, before reaching I-PAC affiliates in Goa.
The ED indicated that elements involved in this scheme handled the funds for event management purposes tied to I-PAC, with key personnel like Sagar Kumar Patel being implicated in the transfer and usage of these amounts.
Role of I-PAC in Campaigning
I-PAC has been known for its influential role in shaping electoral strategies for various political campaigns. The Director of I-PAC, Pratik Jain, has been particularly noted for managing operations in states like Goa, where these alleged funds were put to use. The allegations raised serious questions regarding the sanctity of campaign financing and political ethics.
Political Fallout from the Raids
As a response to the ED’s actions, Chief Minister Mamata Banerjee led a protest rally against the raids on I-PAC’s offices, claiming that the investigations were politically motivated. The Trinamool Congress (TMC), her party, rejected the allegations and sought to return items seized during the raids.
Tensions escalated when Banerjee personally entered the I-PAC office during the ED’s searches, further fueling accusations regarding her involvement in the controversy. Ongoing developments have turned this from a financial inquiry into a significant political battle, particularly as West Bengal approaches upcoming elections.
Official Reactions and Opposition Stance
The political maneuvers post-raids initiated a flurry of responses. Members of the Bharatiya Janata Party (BJP) accused Banerjee of obstruction and criticized her for allegedly interfering with the investigation. BJP leader Swapan Dasgupta remarked on social media, asserting that such actions indicate an abuse of power and disregard for governmental norms.
Conversely, opposition leaders from parties such as Congress labeled these investigations as tools of coercion wielded by the ruling party at the center. Congress’s Abhishek Singhvi contended, “The ED now raids political consultants because it has failed to raid facts, truth or credibility.”
Current Status of the Investigation
The investigation is being conducted under the Prevention of Money Laundering Act (PMLA) along with several pertinent sections of the Indian Penal Code (IPC). The CBI has filed multiple chargesheets detailing numerous individuals involved in the scam, while the ED has also prepared its own cases against various entities. The matter currently rests in court, where further arguments are anticipated.
As stated in reports, the situation remains fluid with ongoing scrutiny from various agencies. Numerous individuals involved in the coal scam have already been arrested, including key players from both the local police and political sectors.
Next Steps and Implications
The ramifications of this inquiry could significantly reshape the political landscape in West Bengal, especially given the continuing unease between the state leadership and central agencies. The impending court decisions and any forthcoming charges will likely influence public perception ahead of the elections.
Officials are preparing for likely extensions of investigations, with the ED emphasizing a commitment to thorough and impartial examinations. Meanwhile, the TMC continues efforts to consolidate its base in response to the ongoing challenges posed by these investigations.