The Directorate of Enforcement (ED) has recently taken legal action against Jitendra Nath Patnaik and M/s B D Patnaik (Partnership Firm) under the Prevention of Money Laundering Act, 2002 (PMLA). The Prosecution Complaint was filed on 30/10/2023 in the Court of the Hon’ble Sessions Judge, Khurda at Bhubaneswar – Cum – Special Court (PMLA), Bhubaneswar.
The complaint seeks punishment for the accused individuals for the offense of money laundering and the confiscation of proceeds of crime totaling Rs. 133.87 Crore. The Hon’ble Special Court, PMLA, Bhubaneswar, acknowledged the Prosecution Complaint on October 31, 2023.
The ED’s investigation stems from an FIR registered by the Balasore Vigilance P.S., Odisha Police, and a subsequent Chargesheet filed by the Vigilance Cell P.S., Cuttack, Odisha. The charges involve various sections of the Prevention of Corruption Act, 1988, IPC, 1860, Forest Conservation Act, 1980, Mining & Mineral (Development & Regulation) Act, 1957, and Mineral Conservation and Development Rules, 1988. Fourteen other public servants are also implicated in alleged illegal mining activities.
The ED’s findings indicate that Jitendra Nath Patnaik, a partner in M/s B D Patnaik, engaged in illegal mining without a valid mining lease from the State Government and necessary clearances from the Ministry of Environment and Forest, Government of India. This illicit activity resulted in a loss of Rs. 130.39 Crore to the exchequer from 1989 to 2009. Patnaik allegedly funneled the unlawfully obtained proceeds into his other business ventures, thereby enriching himself and his family members.
In a prior operation under PMLA, 2002, the ED conducted searches at locations associated with Jitendra Nath Patnaik in Bhubaneswar and Joda, Keonjhar, on 11.05.2022.
The searches led to the seizure of Fixed Deposits amounting to Rs. 133.17 Crore and Indian Currency totaling Rs. 70.01 Lakh. Following an application by the ED, the Hon’ble Adjudicating Authority, PMLA, New Delhi, permitted the retention of the seized properties through an order dated 01.11.2023.
