AML Watchdog of India, ED conducted a search and seized Rs 6.5 Crore in the form of unaccounted cash in the Coal Scam Case of Raipur.
AML Watchdog has conducted search operations & made arrests under the Prevention of Money Laundering Act (PMLA) 2002, pertaining to a massive scam in which an illegal levy of Rs 25 per tonne is being extorted from every tonne of Coal transported in the State of Chhattisgarh by a cartel involving Senior Bureaucrats, businessmen, politicians & middlemen.
The kingpin of this scam Suryakant Tiwari & his associates entered into a criminal conspiracy to run a parallel system of extorting illegal levies on coal. They were doing illegal and unaccounted cash movement. The proceeds of crime were being used for investing in Benami assets, bribing officials to influence senior officers and also used by or on behalf of political executives.
Who filed the complaint?
ED initiated a money laundering investigation based on the FIR lodged by the Income Tax Department against this conspiracy for this illegal extortion & for the destruction of evidence.
ED is investigating the entire gamut of this conspiracy including the main kingpin, the role of senior officials who facilitated this scam with impunity and the beneficiaries of the illegal proceeds of crime.
On 11.10.2022, ED conducted simultaneous searches at multiple locations in Chhattisgarh and seized incriminating evidence and unaccounted cash & jewellery from various suspects. Suryakant Tiwari is found to be absconding. Mrs Ranu Sahu IAS (Collector of Raigad) was also found to be missing from her official residence.
ED has seized unaccounted cash amounting to Rs 4.5 Crore, gold jewellery, bullion and other valuables worth around Rs 2 Crore approximately.
Modus operandi of the Coal Scam Case
ED investigation revealed that the extortion of illegal coal levy became rampant when the Director of Geology and Mining Department, issued a notification dated 15.07.2020 which modified the earlier online process of e-permit for transporting the coals from mines to users into the issuance of manual No Objection Certificate (NOC). No Standard Operating Procedure (SOP) document was circulated in this regard.
A Coal Delivery Order (CDO) is issued in favour of the buyer by the mining company and the buyers are required to deposit an Ernest Money Deposit (EMD) of Rs. 500 per metric ton with the mining company. The buyer is also required to lift the coal within 45 days. The notification which came into force on 15.07.2020 required the mining companies to apply to the Mining officer for NOC for the issuance of an e-permit.
Without NOC, the E-permit for transportation of the coal cannot be issued by the Mining Officer. This leads to the non-execution of CDO (Coal Delivery Order issued by the Mining Company after the auction). If CDO is not executed within 45 days, it lapses and Ernest Money Deposit paid by the buyer @ Rs.500/- per tonne is forfeited by the Mining Company. Thus, it is the buyer of the Coal whose supply of coal is disrupted, if NOC is delayed or denied. Generally, the coal buyers are Steel Plants or Captive Power Plants.
Finding of ED in Coal Scam Case
The survey revealed that no prudent documentation system was in place at Mining Department. In many places, signatures were missing. Note sheets were missing. Namesake enquiry is conducted and No Objection Certificates were issued at the whims & fancy of the Collector.
More than 30,000 No Objection Certificates were issued since 15.7.20, without any Standard Operating Process. Inward & Outward registers were not maintained. There is no clarity on the role of the officers. Many of the details like the Transporter’s Name, Company’s Name etc are left blank.
The cartel led by Mr Suryakant Tiwari with the assistance of very Senior Government Officers created a network for this extortion racket. Each buyer and transporter of Coal had to first pay Rs 25 per tonne before getting the No Objection Certificate from the Government office. The cartel kept men who would collect money and transport the share of illegal proceeds to the kingpins, workers, Senior IAS-IPS Officers & politicians.
It is estimated that around Rs 2-3 Crore was generated on a daily basis.
Beneficiaries of Coal Scam Case of Raipur
During the course of the search & investigation, cash of Rs 1.5 Crore, which was found with Mr Laxmikant Tiwari was seized. He has admitted that he handled 1-2 Crore of the extorted money on daily basis.
Mr Sunil Kumar Agrawal of Indermani Group, a big Coal businessman was found to be involved in the coal scam case of Raipur & was found to be a major business partner of Suryakant Tiwari. Sunil Kumar Agarwal is found to be associated with at least 20 different companies. Most of the companies associated with Sunil Kumar are based out of Raipur.
Mr Sameer Vishnoi IAS Officer of 2009 Batch and his Wife were found to be in possession of Rs 47 Lacs of unaccounted cash and Gold jewellery of 4 KG.
All the 3 persons were arrested under PMLA and produced before the Raipur PMLA Special Court which has granted ED Custody of 8 days up till 21.10.2022
