ED Probe Links ₹2,742-Crore Coal Scam to Hawala Funds Used in I-PAC Poll Campaigns
New Delhi: A sweeping enforcement action by the Enforcement Directorate (ED) has brought election consultancy firm Indian Political Action Committee (I-PAC) into the spotlight, with investigators alleging that a slice of proceeds from a massive West Bengal coal scam was channelled into political campaign operations.
On January 8, the ED conducted simultaneous searches at multiple locations in West Bengal and Delhi as part of a money-laundering probe linked to illegal coal mining and diversion from Eastern Coalfields Limited. The investigation traces the alleged scam to a sprawling syndicate accused of siphoning off coal worth thousands of crores over several years.
ED claims coal scam funds from Anup Majhi were routed via hawala to IPAC, allegedly used for TMC’s Goa poll strategy, linking scam money to political campaign financing.#CoatGateHeat #TMC #Scam #EDRaids #iPAC| @AnjileeIstwal pic.twitter.com/EhK1bJTLt7
— IndiaToday (@IndiaToday) January 8, 2026
Inside the Alleged Coal Racket
Central agencies claim the illegal operation was run by a network led by Anup Majee, alias Lala, operating with the backing of a web of local officials, security personnel, private transporters and political intermediaries. Coal allegedly extracted from ECL lease areas was sold off to industrial units across several districts, generating huge volumes of unaccounted cash.
Investigators say the money was centrally pooled at a location known as Bhamuria No. 1, where digital records of collections were allegedly maintained. Part of the coal, according to the ED, was routed to private corporate buyers, adding another layer to the financial trail.
₹2,742 Crore in Illicit Proceeds, ED Claims
Court filings by the ED assert that scrutiny of electronic data points to ₹2,742.32 crore in proceeds of crime generated between 2017 and 2020. The agency says the cash-heavy operation relied almost entirely on physical collections, later moved through informal channels to avoid detection.
Within this pool, investigators allege that around ₹20 crore was siphoned off to support election-related activities handled by I-PAC.
The Hawala Route to Campaign Spending
According to the ED, the ₹20 crore allegedly travelled from Kolkata to Goa through a layered hawala network involving multiple intermediaries and shell entities. The funds are said to have been used during the 2021–22 election cycle, primarily for event management and campaign logistics.
The agency claims the money eventually reached firms engaged by I-PAC, with cash deliveries handled locally in Goa. Pratik Jain, I-PAC’s co-founder and director, is under investigation in connection with the alleged utilisation of these funds.
Arrests, Accused and Official Complicity
So far, more than 40 individuals have been named in the Central Bureau of Investigation chargesheet. Majee remains the central accused. Investigators have also arrested former police officer Ashok Kumar Mishra, whom the ED describes as a key enabler who allegedly ensured the smooth movement of coal trucks and cash consignments.
The agency further claims that several senior ECL officials played a role in allowing the racket to function unhindered.
Political Tempers Flare
The raids have intensified political hostilities in West Bengal. The ED has sought judicial scrutiny over the conduct of Mamata Banerjee, citing her visit to I-PAC-linked premises during the searches. The Trinamool Congress has denied wrongdoing and accused central agencies of political vendetta.
The Bharatiya Janata Party, meanwhile, has alleged interference and obstruction, while other opposition parties have rallied around claims of selective targeting ahead of elections.
Where the Case Stands
The prosecution is underway under the Prevention of Money Laundering Act (PMLA) and relevant IPC provisions. Multiple chargesheets and supplementary complaints have already been filed, and the matter is currently before the court at the pre-charge stage.
In essence: investigators allege that a vast, cash-driven coal scam did more than strip public resources — it may have quietly financed political campaign machinery, turning a criminal probe into a full-blown political battle.
