From Kolkata to Goa: How Rs 2,742 cr coal scam funds allegedly fueled I-PAC’s election machine

How did the syndicate operate?

The ED traces the case back to a 2020 CBI FIR. Investigations revealed that the syndicate led by Majee allegedly stole and illegally excavated coal, then sold it to factories across Bankura, Bardhaman, and Purulia districts. The cash received was funneled to a central hub called “Bhamuria Number 1,” where Majee’s accountant Niraj Singh maintained digital ledgers.

“A large part of this coal was sold to the Shakambhari Group of companies,” an ED official said.

In a petition before the Calcutta High Court on Friday, the ED stated that Rs 20 crore in proceeds of crime was transferred to I-PAC through illicit hawala channels.

“Scrutiny of digital evidence seized by the Income-Tax Department revealed that between December 2017 and October 2020, POC amounting to a staggering Rs 2,742.32 crores were generated,” the ED said. “Payment was made in cash and collected at the syndicate’s Bhamuria No 1 office,” the petition added.

Of this amount, the ED claimed around Rs 20 crore was transferred from Kolkata to Goa through a complex hawala network involving a firm called ‘R Kanti Lal’ “to support I-PAC operations in Goa during 2021-2022”.

According to the ED petition in Calcutta High Court, “around Rs 20 crores of Proceeds of Crime from Kolkata was transferred to Goa through R Kanti Lal firm to support I-PAC operations in Goa during 2021-2022.”

“The money trail moved from Jitender Mehta, a financier and ex-director in Akasa Finance Limited, through Mukesh Thakkar (alias Munna), then to Mukesh Patel of the Rajesh Maganlal firm, and finally to Alpesh Patel, the manager of R. Kantilal. In Goa, the funds were handled by Sagar Kumar Patel and delivered to Akshay Kumar, an employee of M/s Hertz and Pixelz and M/s ASM Event Technology Private Limited,” the petition said.

The ED alleges these firms were hired by I-PAC for event management. “Pratik Jain, Co-founder and Director of IPAC, has handled IPAC operations in Goa, where these funds were utilised,” it added.

Who are the key accused?

Central agencies have arrested several people, and at least 41 individuals have been named in the CBI chargesheet. Anup Majee (alias Lala), director of Mark Enclave Pvt. Ltd, is the key accused. Former Bankura police station inspector-in-charge Ashok Kumar Mishra was arrested in April 2021, accused of being the lynchpin who facilitated the safe passage of trucks and cash movement under police protection, the ED said.

The agency said Ashok Mishra claimed the transactions were made at the behest of Vinay Mishra, an alleged associate of TMC MP Abhishek Banerjee, and that Majee sourced the funds. The agency also found alleged involvement of eight senior ECL managers. I-PAC Director Pratik Jain is also under investigation.

What has been the political fallout?

Following Thursday’s ED raids, the matter has evolved from a financial probe to a high-stakes political battle. In a plea before the Calcutta High Court, the ED has sought a CBI probe against Chief Minister Mamata Banerjee, who entered the I-PAC office and Pratik Jain’s house where the agency was conducting searches on Thursday. The Trinamool Congress has filed a plea seeking the return of articles allegedly seized by the ED during the raids.

The raids have sparked a political slugfest in poll-bound West Bengal. Tagging Prime Minister Narendra Modi and Union Home Minister Amit Shah, BJP’s Swapan Dasgupta wrote on X: “When a Chief Minister personally removes ostensibly incriminating documents from an office that is being searched by the ED (or any other empowered body), she is wilfully putting herself above the Constitution & Rule of Law. Are some people more equal than others?”

The BJP said on X: “A Chief Minister (Mamata Banerjee) rushing to the spot, looking clueless and breathless, to collect party documents and hard disks is not damage control; it indicates a deeper conspiracy.”

The Opposition responded, with Congress’s Abhishek Singhvi saying: “ED now raids political consultants because it has failed to raid facts, truth or credibility. IPAC raid in Kolkata is yet another chapter in the BJP’s playbook of coercion. When democracy is inconvenient, agencies are weaponized.” Samajwadi Party chief Akhilesh Yadav posted: “The BJP is losing badly in Bengal. First proof!”

What is the current status of the case?

The case is being prosecuted under the Prevention of Money Laundering Act (PMLA), 2002, along with IPC sections 120B (criminal conspiracy) and 409 (breach of trust). The CBI filed its main chargesheet in July 2022 and two supplementary chargesheets in May 2023 and July 2024, naming dozens of individuals.

The ED has also filed its prosecution complaint and one supplementary complaint. The case is currently at the pre-charge argument stage in court.