Bhubaneswar: Building on the CAG findings that flagged an estimated revenue loss of nearly Rs 1,000 crore due to illegal sand mining in Odisha, the enforcement directorate (ED) officials on Saturday said its ongoing money-laundering probe unearthed a far wider criminal network involving forged transit permits, inter-state sand smuggling, illicit liquor manufacturing and large-scale asset creation.ED teams, comprising around 175 personnel mobilised from 6 states, conducted marathon searches at more than 25 locations connected to suspected members of the sand mining mafia on Friday. During the operation, the agency seized Rs 2.5 crore in cash, 10 luxury vehicles and a large cache of incriminating documents related to mining activities and immovable properties.According to ED sources, the searches revealed that proceeds of crime generated from illegal sand extraction were allegedly diverted to fund the manufacture of illicit country-made liquor. Several illegal brewing units, locally known as ‘bhattis’, were raided during the operation and cash was recovered. The probe also established the use of forged transit permits, known as ‘Y’ forms in Odisha, to facilitate the illegal movement of sand to neighbouring Andhra Pradesh.Two stone crushers were also searched, leading to the seizure of mining-related records. Crucial documents were recovered from the premises of the alleged kingpin, Kripasindhu Muduli, ED sources said, adding that several accused persons have criminal antecedents and multiple cases linked to illegal sand mining are registered against them. The role of leaseholders who were legally allotted sand mining sites is also under investigation. Officials said forward and backward linkages of the suspected network are being examined and arrests may follow soon.The ED action follows a CAG performance audit (year ending March 2022) that flagged serious irregularities in the assessment and collection of revenue from minor minerals.The audit pointed to unlawful quarrying without lease deeds or environmental clearance, excess mining beyond approved plans, non-verification of transit permits, and weak enforcement mechanisms, resulting in revenue leakage running into hundreds of crores.
