Illegal Coal Mining Assets Attached After Investigation
India’s federal financial crime watchdog has taken decisive action in a sprawling illegal coal mining and money-laundering investigation, provisionally attaching assets worth more than Rs 100 crore linked to a syndicate accused of large-scale pilferage and illicit extraction in Eastern Coalfields Limited (ECL) leasehold areas. The move follows growing enforcement scrutiny and a Special Investigation Team (SIT) probe ordered in related mining misconduct cases in the region, highlighting systemic governance and environmental challenges in extractive sectors.
On 13 February 2026, the Enforcement Directorate (ED) said it has lodged provisional attachments under the Prevention of Money Laundering Act (PMLA) against immovable properties, fixed deposits and mutual fund investments tied to companies accused of benefitting from illegally mined coal. The assets, valued at roughly Rs 100.44 crore, are connected to a syndicate allegedly led by a syndicate operator whose activities spanned extraction, movement and sale of coal outside legal frameworks.Evidence amassed during the investigation suggests that the network deployed a system of forged transport documentation — colloquially referred to by investigators as a false “transport challan” or invoice — to move pilfered coal to industrial units, circumventing inspection and regulatory controls. In some instances, field agents described how truck operators would photograph motor vehicles holding specific currency notes beside number plates to verify illegal consignments, a mechanism that helped evade interception by enforcement authorities.
The ED’s attachments are the latest in a series of actions revealing the financial tentacles and complexity of illegal coal operations in eastern India. So far in this case, the total value of assets attached has climbed beyond Rs 322 crore, as investigations extended to include beneficiary companies in the steel and iron sector accused of transacting in cash with pilfered coal proceeds.The significance of these enforcement moves extends beyond law enforcement. Illegal mining and pilferage have long presented challenges for environmental governance, regional livelihoods and urban infrastructure inputs. Coal remains central to steel manufacturing, energy generation and heavy industry — sectors underpinning the construction of cities, transport networks and industrial clusters. Irregular extraction undermines sustainable sourcing, distorts markets and places pressure on legitimate mining operations that must comply with environmental and safety standards. Analysts contend that climate-aligned urban planning and decarbonisation goals depend on transitioning away from unregulated fossil fuel extraction while strengthening oversight in existing supply chains.
The ED’s action comes amid intensified inquiry by the judiciary and administrative bodies into illegal mining practices. In neighbouring Meghalaya, authorities recently established a Special Investigation Team (SIT) to probe a separate coal mine blast that highlighted enforcement lacunae in mining safety and environmental regulation, amplifying calls for stronger governance across extractive industries.Urban economists and policy experts suggest that enforcement outcomes such as asset attachments can deter illicit activity only if paired with systemic reforms — including digitised tracking of mineral movement, transparent auction mechanisms and community-centred livelihood alternatives for regions dependent on informal mining. Without such reforms, illegal extraction and pilferage remain persistent threats to environmental integrity, legitimate enterprises and equitable economic development.
As the ED continues its investigation, the unfolding legal and regulatory responses will shape how industrial inputs like coal are governed in ways that affect manufacturing competitiveness, regional economies and the sustainability of infrastructure supply chains.
