The Enforcement Directorate (ED), Bhubaneswar Zonal Office, conducted a major search operation across Ganjam district on January 16 under the Prevention of Money Laundering Act (PMLA), 2002, targeting alleged illegal sand and black stone mining and associated money laundering activities.

Over 175 officials from six states carried out searches at more than 25 locations, focusing on brokers, contractors, and business associates allegedly involved in unlawful mining and country liquor (Bhati) operations.

During the raids, the ED seized Rs 2.63 crore in cash, along with documents, property records, mining lease papers, power agreements, and several high-end benami vehicles. Preliminary findings suggest illegally mined minerals were sold in the grey market, with proceeds laundered through liquor businesses and other ventures.

The investigation revealed that syndicate members allegedly took over mining leases registered in the names of legitimate leaseholders and operated through intimidation and unlawful methods. Many of the accused have criminal backgrounds, with FIRs for offences including murder, kidnapping, assault, forgery, cheating, and extortion.

The operation follows previous CAG reports highlighting rampant illegal mining along the Rushikulya, Bahuda, and Bada rivers, which caused substantial losses to the state exchequer.

The ED continues to probe the full extent of the syndicate’s illegal operations and financial network.