Bengal Coal Scam: ‘Lala Pad’ Racket Exposed, ED Attaches ₹159.51 Crore Assets of Shyam Group

Moneylife Digital Team 15 April 2026

Economy & Nation

The directorate of enforcement (ED) has provisionally attached assets worth ₹159.51 crore held by Shyam Sel & Power Ltd and Shyam Ferro Alloys Ltd (Shyam group, controlled by Sanjay and Brij Bhushan Agarwal) under the Prevention of Money Laundering Act (PMLA), 2002, in connection with an ongoing probe into large-scale illegal coal mining and pilferage in the leasehold areas of Eastern Coalfields Ltd (ECL).

With this latest action, the total value of assets attached in the case has reached ₹482.22 crore, the agency says.

The ED investigation has revealed that the illegal mining operations were carried out by a syndicate allegedly led by Anup Majee, also known as 'Lala'. The syndicate is accused of engaging in widespread illegal excavation and coal pilferage, supplying the material to several factories in West Bengal with the alleged facilitation of local administrative elements.

According to the agency, certain beneficiary companies knowingly purchased illegally mined coal in cash, thereby helping to conceal and project the proceeds of crime as legitimate. The attached assets include investments in financial instruments such as corporate bonds and alternative investment funds held in the names of beneficiary entities, including Shyam Sel and Power and Shyam Ferro Alloys, which are part of the Shyam group managed by Sanjay and Brij Bhushan Agarwal.

ED has also uncovered a unique modus operandi involving an illegal transport challan system known as the 'Lala pad'. These were fake tax invoices issued in the names of non-existent entities to facilitate the movement of illegally mined coal.

In a sophisticated evasion tactic, transporters were allegedly handed a ₹10 or ₹20 currency note and instructed to photograph it alongside the number plate of the vehicle carrying the coal. The image would then be sent to the syndicate operator, who circulated it via WhatsApp to police officials and other authorities along the route. This ensured that the vehicles were not intercepted or were released if stopped.

The probe further revealed the use of an underground hawala network to transfer proceeds of crime in cash, bypassing formal banking channels. Transactions were authenticated using unique identifiers such as the serial number of a currency note shared between sender and recipient. Once verified, cash was handed over without any formal documentation, allowing seamless and untraceable movement of funds.

ED says the offence involves multiple layers of complex financial transactions designed to conceal the origin and ownership of illicit funds. The agency is continuing its investigation to identify ultimate beneficiaries, trace additional proceeds of crime, and detect all individuals involved in the laundering process.

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