360 Degree View | Cash & Codewords: How Bengal’s Coal Scam Trail Is Closing In Before Elections

At the centre of the probe lies a syndicate allegedly led by Anup Majhi, alias 'Lala', with investigators pointing to a well-oiled network that moved illegal coal across districts.

At the centre of the probe lies a syndicate allegedly led by Anup Majhi, alias ‘Lala‘, with investigators pointing to a well-oiled network that moved illegal coal across districts with alleged administrative complicity. Although Majhi surrendered in 2024 and underwent custodial interrogation by central investigating agencies, another prime accused, Vinay Mishra, absconded and is believed to have settled abroad. The probe into the wide-ranging scam has progressed through multiple layers, with several central agencies including the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), and the Income Tax Department, actively involved.

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The Long & Layered Investigation

The ED’s current findings suggest that beneficiary companies knowingly purchased illicit coal in cash, helping convert ‘proceeds of crime’ into seemingly legitimate assets. Investments routed through corporate bonds and alternative funds, linked to entities such as Shyam Sel and Power Limited. This adds another layer of complexity to what is now clearly more than just a mining scam.

“Certain beneficiary companies in West Bengal were found to have knowingly purchased concealment and projection of Proceeds of Crime as movable financial instruments such as corporate bonds and alternate investment funds held in the names of beneficiary entities, including Shyam Sel and Power Limited and Shyam Ferro Alloys Limited, part of the Shyam Group managed and controlled by Sanjay Agarwal and Brij Bhushan Agarwal. Further investigation has established that the syndicate was engaged in illegal excavation and widespread pilferage, distributing the coal to multiple factories in West Bengal with the active facilitation of local administrative elements," said an ED statement.

What stands out is the operational ingenuity of the network. According to the directorate, the so-called ‘Lala pad’ system, essentially fake transport challans, combined with low-value currency note verification and WhatsApp-based clearance chains, indicates a decentralised yet coordinated mechanism designed to evade detection. Add to that the use of hawala channels, where even the serial number of a currency note becomes a transactional identifier, and the scale of institutional bypass becomes stark.

The ED statement said, “Along with the fake transport challan, a currency note of Rs. 10 or Rs. 20 was provided to the transporter. The transporter would take a photograph of the said currency note while holding it beside the number plate of the truck, dumper, or tipper carrying the illegal coal and send the image to the operator of the coal syndicate. The operator would then circulate the photograph through WhatsApp to concerned Police officials and other government authorities along the route of the vehicle, ensuring that the truck was not intercepted or, if intercepted, was immediately released. The investigation has also uncovered the use of an underground hawala network for transferring Proceeds of Crime in cash, bypassing formal banking channels."

It further added, “Transactions were authenticated using unique identifiers, typically the serial number of a currency note shared between sender and recipient. Upon verification of the matching note, cash was handed over without any formal documentation, enabling seamless and untraceable movement of funds."

A Scam That Refuses to Fade

The coal scam in Bengal has been long pending in more ways than one – legally, politically, and electorally. Despite multiple rounds of raids, arrests, and interrogations over the years, the case has persisted, periodically resurfacing with fresh attachments or disclosures.

The latest ED action, pushing the total attached assets to over Rs 482 crore, suggests that investigators are still unravelling financial trails that run deep into business and political ecosystems.

This is where the intersection with political consultancy firm Indian Political Action Committee (IPAC) becomes significant. Recent arrests and raids linked to individuals associated with political operations have added a new dimension to the probe.

While direct culpability remains a matter for the courts, the optics are unmistakable. The investigation is no longer confined to miners and middlemen; it is inching closer to the political machinery that shapes narratives and campaigns in West Bengal.

For Trinamool Congress, this is familiar but uncomfortable terrain. Senior leaders of the party have consistently dismissed central agency actions as politically motivated, especially in the run-up to elections. Yet, each new attachment or arrest feeds into a counter-narrative, one that links governance with alleged systemic leakages and patronage networks.

Elections, Optics, and Pressure Points

With the Bengal elections on the horizon, the timing of the ED’s renewed push is unlikely to be seen as coincidental. The Opposition, primarily the BJP, will inevitably weaponise these developments, projecting them as evidence of corruption under the leadership of Mamata Banerjee. The ruling establishment, in turn, is expected to double down on its argument of ‘agency overreach’ and selective targeting.

But beyond the predictable political sparring, there is a deeper question at play. How much of this case has translated into accountability? The persistence of the scam, despite years of scrutiny, raises concerns about the durability of such networks and the challenges of dismantling them fully.

For voters, especially in districts historically linked to mining and transport corridors, the issue is no longer abstract. It touches upon governance, law enforcement credibility, and the distribution of economic benefits. In the end, the coal scam is no longer just about illegal mining. It is about power and also about who wields it.

© News18