ED Raids in Ganjam: ₹2.63 Crore Cash Seized, Criminal Antecedents of Illegal Mining Syndicate Exposed

Bhubaneswar: In a major crackdown on illegal mining and money laundering, the Enforcement Directorate (ED), Bhubaneswar Zonal Office, seized ₹2.63 crore in cash while exposing the deep criminal antecedents of an organised mining syndicate during a massive search operation in Odisha’s Ganjam district on January 16, 2026.

The operation, conducted under the Prevention of Money Laundering Act (PMLA), 2002, covered more than 25 locations and involved over 175 officials drawn from six states. The searches targeted premises linked to individuals allegedly involved in illegal sand and black stone mining, along with contractors, brokers and proprietors associated with country liquor (Bhati) businesses.

According to the ED, the syndicates under investigation have a long history of criminal activities, with several members facing FIRs for serious offences such as murder, kidnapping, physical assault, forgery, cheating and extortion. These groups allegedly used muscle power to forcibly carry out illegal excavation and sale of minor minerals, creating an atmosphere of fear while exploiting local communities.

The probe was initiated through an Enforcement Case Information Report (ECIR) based on multiple FIRs registered against sand mining syndicates in Ganjam for illegal mining and transportation of minerals using forged and fabricated Y-Forms (transit permits). The investigation also relies on recent Comptroller and Auditor General (CAG) reports, which flagged rampant illegal mining along the riverbeds of the Rushikulya, Bahuda and Bada rivers, resulting in huge losses to the government exchequer.

The ED stated that the modus operandi involved illegally taking control of mining leases issued in the names of legitimate leaseholders by offering commissions at fixed rates. Since such leases are non-transferable under law, their unauthorized use enabled syndicate members to extract sand and black stone far beyond permissible limits. The illegally mined minerals were largely sold in the grey market through cash transactions, often backed by forged transit passes.

nvestigators also found that the proceeds of crime were generated and circulated mainly in cash and were routed through country liquor and other businesses, remaining unaccounted and unrecorded. This systematic laundering of funds caused substantial revenue loss to the state.

During the searches, the ED seized incriminating documents, extensive property records, mining-related agreements, power agreements and several high-end benami vehicles allegedly acquired from the proceeds of crime, in addition to the ₹2.63 crore cash recovery.

Further investigation in the case is currently underway, the ED said.