Kolkata: ED Charges Five in ₹650 Crore Coal Theft and Extortion Case
Synopsis
The Enforcement Directorate has filed a charge sheet against five individuals in Kolkata, revealing a shocking ₹650 crore coal theft and extortion scheme. This vast syndicate exploited illegal coal mining and bribed officials to facilitate their operations.
Key Takeaways
The ED filed a charge sheet against five individuals for involvement in a ₹650 crore coal racket.
Illegal activities included coal theft, illegal mining, and extortion.
Bribes were allegedly paid to government officials to facilitate operations.
The investigation was based on multiple FIRs from various police stations.
Significant financial losses were reported for Eastern Coalfields Limited due to these activities.
Kolkata, April 11 (NationPress) - The Enforcement Directorate (ED) has submitted a charge sheet against five individuals in a Special Court (PMLA) in Kolkata, linked to a massive ₹650 crore scandal involving illegal coal mining, theft, unlawful transportation of coal, fraudulent sales, forgery, and extortion, as reported by an official on Saturday.
The ED’s Kolkata Zonal Office has identified Chinmoy Mondal, Kiran Khan, and their accomplices in the chargesheet filed on Thursday, as stated in an official release.
The investigation revealed instances of bribes being offered to various government officials and local political figures in West Bengal, aimed at enabling the movement of coal and sustaining the operations of the syndicate, according to the ED.
The inquiry was initiated following 54 FIRs lodged by different police stations in the Durgapur–Asansol area of West Bengal, stemming from complaints made by Eastern Coalfields Limited (ECL), CISF, and local law enforcement.
Evidence indicated that Chinmoy Mondal, Kiran Khan, and their associates were integral members of a well-organized coal syndicate functioning in the Durgapur-Asansol region and surrounding localities.
Both Chinmoy Mondal and Kiran Khan were apprehended under Section 19 of the PMLA on February 2, according to the ED.
This syndicate was involved in numerous illegal coal activities, including trading coal acquired through illicit methods and unlawfully transporting it from Jharkhand to West Bengal, as well as systematically extorting fees from legitimate D.O. (Delivery Order) holders, transporters, and coal buyers.
Such illegal charges, commonly referred to as 'GT,' 'Gunda Tax,' or 'Rangdari Tax,' were ostensibly collected as lifting or handling fees, the ED disclosed.
Investigations showed that extortion rates varied from ₹275 to ₹1,500 per tonne, representing a staggering 20–25 percent of the actual auction value of coal, according to the ED.
Due to these unlawful charges, a considerable quantity of allocated coal remained unlifted, resulting in significant financial losses for ECL.
To date, the Proceeds of Crime generated by this syndicate through their extortion activities over the past five years have been estimated to exceed ₹650 crore.
During the investigation, multiple searches were executed under Section 17 of the PMLA at various locations associated with the accused and their affiliates, as stated in the release.
The searches conducted on November 21, 2025, and February 3, 2026, yielded cash, bank balances, and valuable assets totaling approximately ₹17.57 crore, alongside substantial physical stocks of coal and coke from the properties of the accused and their associates, the ED reported.
Further investigations revealed that the accused utilized various proprietorships and companies as fronts to manipulate, layer, and present Proceeds of Crime as legitimate income, according to the release.
Analysis of bank accounts disclosed substantial cash deposits and significant fund transfers among closely linked individuals and entities.
Point of View
Emphasizing the need for stringent enforcement and accountability among all stakeholders. The involvement of government officials raises serious concerns about corruption and the integrity of regulatory frameworks.
NationPress
2 May 2026
Frequently Asked Questions
What is the amount involved in the coal theft case?
The coal theft case involves an estimated ₹650 crore.
Who are the main accused in this case?
The main accused include Chinmoy Mondal and Kiran Khan, along with their associates.
What illegal activities were uncovered during the investigation?
The investigation revealed illegal coal mining, theft, unlawful transportation, forgery, and extortion.
How did the syndicate operate?
The syndicate operated by bribing officials and extorting fees from legitimate coal transactions.
What penalties could the accused face?
The accused could face severe legal consequences under the Prevention of Money Laundering Act (PMLA).
