The Supreme Court on Tuesday issued notice on an Enforcement Directorate (ED) plea seeking cancellation of anticipatory bail granted to alleged coal smuggling kingpin Anup Majee, alias "Lala", in a money laundering case linked to the multi-crore illegal coal mining racket in West Bengal. The development marks a fresh escalation in one of India's most politically charged financial crime investigations.

What the Supreme Court Ordered

A Bench of Justices Vikram Nath and Sandeep Mehta sought Majee's response on the ED's challenge to the Delhi High Court order granting him anticipatory bail in proceedings arising out of an Enforcement Case Information Report (ECIR) registered under the Prevention of Money Laundering Act (PMLA). The ED's special leave petition (SLP) specifically challenges the High Court's finding that the "twin conditions" under Section 45 of the PMLA were satisfied in Majee's case.

ED's Case Against Majee

Additional Solicitor General S.V. Raju, appearing for the ED, submitted that Majee was the "main person" and "kingpin" behind the alleged illegal excavation and theft of coal from leasehold areas of Eastern Coalfields Limited (ECL), involving proceeds of crime worth approximately ₹2,700 crore. The agency argued that Majee had absconded and initially failed to cooperate with the investigation despite repeated summons issued under Section 50 of the PMLA.

The ED alleged that Majee was one of the "main organisers" of a syndicate engaged in illegal mining and transportation of stolen coal in active connivance with officials of ECL, CISF, Railways, and other government departments. According to the agency, coal worth ₹2,742.32 crore was misappropriated from ECL leasehold areas through illegal excavation and pilferage. The illegal mining network allegedly used a fake transport challan system known as the "Lala pad", through which illegally mined coal was moved across West Bengal.

The agency further claimed that proceeds of crime were routed through hawala channels and shell entities to conceal the origin of funds. Last month, the ED stated it had provisionally attached assets worth ₹159.51 crore in the case, taking the total value of attached assets to ₹482.22 crore.

Majee's Defence

Senior advocate Siddharth Dave, appearing for Majee, opposed the plea and contended that his client had joined the investigation on multiple occasions and that custodial interrogation was no longer necessary. The Delhi High Court had earlier recorded that Majee appeared before the agency on 13 occasions and provided documents sought during the investigation.

In its order, a single-judge Bench of Justice Tejas Karia had observed that "there are reasonable grounds for believing that the Applicant is not guilty of the alleged offence under PMLA," adding that the ED had already filed a chargesheet and supplementary chargesheet without taking steps to arrest him for custodial interrogation. The High Court had also noted that the investigation had continued for nearly five years and that the ED had not attempted to arrest Majee despite summoning him several times.

Political Dimensions of the Case

The coal smuggling case, initiated in 2020, pertains to alleged illegal excavation and theft of coal from ECL leasehold areas in West Bengal and neighbouring regions. The investigation took a sharp political turn after the ED raided the Kolkata office of political consultancy firm I-PAC, with the agency alleging links between the proceeds of crime and the firm through a purported hawala trail.

During that operation, then Chief Minister Mamata Banerjee arrived at the premises, while the ED later claimed in court that documents and electronic devices had been removed from the site during the raids. The episode triggered a major political controversy in West Bengal, adding a charged backdrop to what is already one of the ED's most high-profile PMLA investigations.

The Supreme Court is expected to take up the matter for further hearing once Majee files his response to the notice.