Kolkata: The Enforcement Directorate (ED) on Thursday identified the Shakambhari Group, a West Bengal-based industrial conglomerate, as a major end-user of illegally mined coal sourced from Eastern Coalfields Limited (ECL) areas, as part of an ongoing investigation into a multi-crore coal smuggling syndicate.

Investigation Details

The probe traces its origins to a 2020 FIR filed by the Central Bureau of Investigation (CBI) against alleged coal smuggling kingpin Anup Majee and others. According to the ED, a significant portion of coal illegally extracted from ECL leasehold areas was sold to manufacturing units operated by the Shakambhari Group. These factories are located in Bankura, Purulia, and Bardhaman districts, serving as end-use points for the illicitly sourced coal.

The investigation has uncovered a layered money-laundering network in which hawala operators were allegedly used to channel proceeds from the illegal coal trade. One such operator is suspected to have facilitated transactions worth “tens of crores of rupees” to Indian PAC Consulting Private Limited, the ED said.

Searches Conducted

On Thursday, the ED conducted search operations at six locations in West Bengal and four in Delhi. These operations targeted premises linked to the generation, movement, and laundering of proceeds from the illegal coal trade. The agency said the actions were part of its effort to trace the flow of funds and assets associated with the smuggling syndicate.

About Shakambhari Group

Headed by Chairman and Managing Director Deepak Kumar Agarwal, the Shakambhari Group is among West Bengal’s largest integrated steel manufacturers. The group operates multiple sponge iron, steel, and power units and markets its products under brands such as Thermocon and Elegant. None of the group’s companies are listed on any stock exchange.

Financial disclosures indicate that the Shakambhari Group recorded a turnover of ₹5,533.69 crore in the 2023-24 financial year, which grew by nearly 10 per cent to ₹6,098.39 crore in 2024-25. The conglomerate has also expanded by acquiring and reviving stressed industrial assets through the National Company Law Tribunal, including units such as SPS Steels, Vikash Metal, Bravo Sponge Iron, and Ess Dee Aluminium.

ED Allegations

The ED alleged that illegally mined coal formed a crucial input for several of the group’s sponge iron and power plants, bringing its procurement practices under scrutiny. The agency emphasized that the investigation focused on the flow of illicit coal and the associated laundering of its proceeds.

Political Controversy

Searches at the residence of I-PAC director Pratik Jain in Kolkata triggered political tensions. West Bengal Chief Minister Mamata Banerjee visited Jain’s Loudon Street residence and the firm’s Salt Lake Sector V office during the raids, alleging political motivation behind the ED actions. The ED, however, rejected these claims, stating that the visits were lawful and related to an ongoing investigation under the Prevention of Money Laundering Act, aimed at preventing obstruction of justice.

Deepak Kumar Agarwal, chairman of the Shakambhari Group, was not reachable for comment at the time of reporting.

The investigation into the illegal coal supply chain continues, with authorities probing both the financial transactions and industrial operations linked to the Shakambhari Group and other involved entities.