New Delhi/Patna, Jul 30 (PTI) The Enforcement Directorate has written to the Bihar government flagging an alleged over Rs 131 crore worth sand mining scam in Banka district of the state that has potential links to certain politicians and their associates, official sources said.

The federal probe agency's communication was sent a few weeks back and it came in the backdrop of a 2023 'Lok Adalat' (alternate dispute redressal platform) proceeding during which the alleged criminal offence was "compounded" and the accused were let off with a monetary penalty, the sources told PTI.

The case began with the Banka police filing as many as seven criminal FIRs between 2017 and 2018 against a company named Mahadev Enclave and its promoters to probe the alleged illegal sand mining in the district.

The police had pressed multiple IPC sections related to cheating, forgery and theft apart from sections of the Mines and Minerals Development and Regulation Act, Bihar Minerals (Concession, Prevention of Illegal Mining, Transportation and Storage) Rules and Environment Protection Act in its complaint.

The company was the sole licence holder in the said district to excavate sand from 28 river banks between 2015 and 2021, according to mining department officials.

The police investigated the case, recorded statements of various persons and filed chargesheets in all the seven cases before a local court naming the company and its director Manoj Kumar Pachisia as accused, they said.

However, the sources said, as there was a delay in the court proceedings, the case was taken before the 'Lok Adalat' for compounding and the accused were let off after they were slapped with a penalty amount in February 2023, the sources said.

The company or its promoters could not be contacted for a comment on these charges made against them.

The ED had filed a case under the Prevention of Money Laundering Act (PMLA) on the basis of these police chargesheets and had collected some "evidence" and recorded statements of various persons under the PMLA, including that of the Banka mining development officer.

However, the compounding of the original criminal case tied the hands of the ED as under the anti-money laundering law, the agency requires a predicate offence to prosecute the accused.

Sources privy to the development said the ED recently wrote to the Mines and Geology department of the Bihar government under section 66(2) of the PMLA that allows it to share information and evidence with a law enforcement agency regarding violation of a criminal law.

The agency, in the communication, is understood to have furnished a geospatial report prepared by the Indian Institute of Technology (IIT) Patna (undertaken on ED's request) to the Bihar government which found that 11.99 crore cubic metres of the sand was "illegally" excavated from the district by the accused company between 2016 and 2021.

Experts of the IIT used remote sensing and similar techniques to prepare the report in about two months time and it was also reported that alleged illegal sand mining was done beyond the lease areas, according to the sources.

The ED has said in its letter that as per mining department's rates, this alleged illegal excavation of sand led to the loss of about Rs 131,43,20,058 in revenue to the state government, the sources said.

The agency has sought filing of a fresh FIR by the state police under various sections of the IPC/BNS related to cheating, forgery, criminal conspiracy and relevant mining and environment laws so that the accused could be prosecuted under the relevant criminal laws.

Sources said a money trail analysis of the accused and others linked to them indicate potential involvement of certain politicians. PTI NES DV DV

Predicate offence requirement under PMLA blocks prosecution after compounding; ED urges fresh FIR based on geospatial evidence. Compounding of the original criminal complaints at a Lok Adalat prevented prosecution under the Prevention of Money Laundering Act because a predicate offence is required. The federal agency shared geospatial forensic evidence with the state mining department alleging extensive illegal excavation beyond lease areas and significant revenue loss, and has requested filing of fresh FIRs under relevant penal, mining and environmental laws so criminal prosecution may proceed and enable anti money laundering action.