New Delhi: The Enforcement Directorate (ED) on Monday (April 13) arrested I-PAC director Vinesh Chandel under the Prevention of Money Laundering Act (PMLA) in connection with a coal pilferage case in West Bengal.

After the arrest, authorities produced Chandel before Additional Sessions Judge Shefali Barnala Tandon at Patiala House Courts. The hearing began on the night of Monday and continued into the morning of Tuesday (April 14), with the judge granting 10 days of ED custody.

The ED investigation stems from a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) and Delhi Police regarding coal excavation from Eastern Coalfields Limited (ECL) mines in the Asansol region.

In its remand application, the ED alleged that “proceeds of crime laundered by Indian PAC Consulting Pvt Ltd amount to multiple crores, with Rs 50 crore detected so far.” The agency documented a method it calls the “50% cheque” system, stating that “only part of the payments were recorded through formal channels, while the remaining portion was received in cash, thereby generating unaccounted funds.”

Further detailing the mechanics of the transfer, the application noted that “investigations have uncovered multiple layers of alleged money laundering by the firm, including receipt of accounted and unaccounted funds, unsecured loans without business justification, issuance of bogus bills and invoices, funds from third parties, and cash movement via domestic and international hawala networks. These funds were utilised for election-related expenditure and other purposes, including influencing public perception.”

Chandel holds a 33% stake in I-PAC. He operates as a founder and director of the firm. Regarding his culpability, the ED stated that “under the relevant provisions of law, directors of a company are liable where the offence has been committed with their consent, connivance or attributable neglect.”

I-PAC declined to comment on the allegations when contacted by The Wire.

I-PAC is currently managing the election campaign for the ruling Trinamool Congress (TMC). Polling in the state is scheduled for April 23 and April 29.

In a post on X shortly after the arrest, TMC national general secretary and member of parliament Abhishek Banerjee wrote, “The arrest of Vinesh Chandel, co-founder of I-PAC, barely 10 days before the Bengal elections, is not just alarming – it shakes the very idea of a level playing field. At a time when West Bengal should be moving towards free and fair elections, this kind of action sends a chilling message: If you work with the opposition, you could be next. That’s not democracy – that’s intimidation. When institutions meant to protect democracy start feeling like tools of pressure, trust begins to erode. On one side, the Election Commission. On the other, agencies like the ED, NIA, CBI stepping in at the most sensitive time. It creates an atmosphere of fear, not fairness.”

Addressing the media on Tuesday, TMC Rajya Sabha MP Derek O’Brien referred to the ED as “Extremely Desperate” and termed the arrest an attempt to derail the party’s campaign.

“Ten days before polling is not law enforcement; it is electoral sabotage,” O’Brien stated. “On the ED, most interestingly, under PMLA… only 0.1% of all cases – that’s 5,900 cases – lead to conviction. That’s the situation.”

He further accused the Union government of utilising investigating agencies to target political opponents, comparing joining the ruling party to a cleaning agent.

“Twenty-three of 25 opposition leaders with corruption cases have the ‘Nirma’ effect,” he said. “As soon as they join the BJP, they are given a packet of Nirma, and they are all washed away. It’s a political tool. We demand the immediate and unconditional release of Vinesh Chandel, and also demand that Central agencies be withdrawn from Bengal ahead of the polls.”

When asked about the political timing of the agency’s actions, O’Brien outlined electoral statistics from the previous Assembly elections to argue that the BJP is anticipating an electoral loss.

“They are doing this because they know the match is lost. When you know from before that you’re going to lose a football match eight-nil, you try and play some mind games. In 2021, the BJP was leading in 47 seats in Bengal by a 5% margin – about 10,000 votes. So the first target is to reach a half-century. The second target after that is somehow to reach the number they reached last time: 77 seats. They’re not playing to win; they are playing to minimise a humiliating defeat… Now, the home minister [Amit Shah] will sit here, and when he goes back on the 4th [of May which is counting day], he’ll say, ‘See, we got better than 47.’ That’s their range of play.”

Opposition questions TMC

The arrest follows earlier ED searches conducted in January 2026 at the I-PAC office in Kolkata and the residence of its head, Pratik Jain. During those searches, West Bengal chief minister Mamata Banerjee arrived at the location, leading to a confrontation with ED personnel.

At that time, Congress leader Adhir Ranjan Chowdhury questioned the actions of the chief minister. Chowdhury said: “I-PAC acts as the eyes and ears of the TMC. We question Mamata Banerjee’s selective outrage over the ED raids.”

On Tuesday, the Communist Party of India (Marxist) questioned both the TMC leadership and the selective deployment of central agencies.

“It’s too little, too late,” CPI(M) leader Mohammed Salim told The Wire. “This coal mafia is not only involved in illegal coal mining, but even in official Coal India ECL mining. For buyers to buy coal, they need to pay the TMC goons. This scam is run by Pratik Jain and Abhishek Banerjee. This has been public knowledge for more than a decade.”

Salim also criticised the role of political consultancies in modern campaign finance.

“I-PAC-type companies are being used as mercenaries,” he said. “They act as ‘supari killers’ for the ruling party, and they are killing democracy and electioneering in India. I-PAC is not alone; there are six other companies run by the BJP too. So either the CBI and ED are lackadaisical in their approach, or they are selective in their approach.“

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