ED raids multiple locations linked to Congress in Chhattisgarh coal levy scam: ED raids increased by 27 times in last 8 years

By: Yash Gupte

The Congress central leadership, including Congress president Mallikarjun Kharge and former presidents Sonia and Rahul Gandhi, were expected to attend the Congress plenary session just a few days before the searches

In connection with its ongoing money laundering case regarding the alleged unauthorised collection of over Rs 500 crore in coal levy, the Enforcement Directorate conducted new searches on Monday, February 20, 2023 at least eight senior Congress leader’s residences in Chhattisgarh, close to chief minister Bhupesh Baghel. The Congress said the BJP government was indulging in “politics of vendetta”.

Residences linked to state Congress treasurer Ramgopal Agrawal, party spokesman R P Singh, and MLA Devendra Yadav were among those searched. The Congress central leadership, including Congress president Mallikarjun Kharge and former presidents Sonia and Rahul Gandhi, were expected to attend the Congress plenary session just a few days before the searches. Including Saumya Chaurasia, a deputy secretary in Baghel's office, the CBI has so far made nine arrests in the case and attached assets totaling Rs 170 crore as the unlawful coal levy scam's proceeds of crime.

According to the ED, the assets that have been attached include benami properties worth more than Rs 7 crore that belong to Chaurasia, as well as other people including businessman Suryakant Tiwari and IAS officer Sameer Vishnoi. As the agency has extended its probe to additional top state legislature leaders for their alleged involvement, all nine of the accused remain in judicial custody. Congress president Mallikarjun Kharge, in a series of tweets said that the raids before the meeting shows the cowardice of BJP and 95 percent of the raids conducted by ED in the last nine years are against the Congress leaders.

Under the Narendra Modi government, there has been a sharp increase in the number of cases taken up by the Enforcement Directorate. The increase has been even sharper since the Modi government returned to power in 2019. In a written reply to a question by Janata Dal (United) MP Rajiv Ranjan Singh, who had asked for details of cases registered by the ED over the past decade, Union minister of state for finance Pankaj Chaudhary replied that “during the last 10 years, the Directorate of Enforcement has taken up around 24,893 cases for investigation under the provisions of Foreign Exchange Management Act, 1999 (FEMA) and has recorded around 3,985 cases under the Prevention of Money Laundering Act, 2002 (PMLA)". Overall, the number of cases taken up by the ED have risen by nearly five times, from 1,093 in 2014-15 to 5,493 in 2021-22.

The number of cases taken up for investigation under FEMA has seen a sharp rise. In 2014-15, 915 PMLA cases were registered which shot up to 5,313 in 2021-22. Likewise the cases under PMLA rose from 178 in 2014-15 to 1,180 in 2021-22. The highest number of money laundering and foreign exchange violation instances were taken up in 2021-22 when 1,180 PMLA and 5,313 FEMA complaints. Till 2022, the agency has attached proceeds of crime of Rs 1,04,702 crores (approximately) and filed prosecution complaints (charge sheets) in 992 cases resulting in the confiscation of Rs 869.31 crore and conviction of 23 accused

In addition, the conviction rate is abysmally low. In around 5,400 PMLA cases in 17 years, there have been only 23 convictions.

Under FEMA, money laundering is a compoundable civil offence, whereas PMLA specifically deals with money laundering where proceeds of a crime are involved. The Prevention of Money Laundering Act was enacted in 2002 and implemented in 2005. It was enacted to prevent money laundering mainly resulting from the international narcotics and drugs trade. Over the years a number of crimes have been brought under the ambit of this law through amendments, increasing the scope of Enforcement Directorate to start proceedings under the Act.