Ranchi, March 31: The Enforcement Directorate (ED) has taken significant action against large-scale illegal stone mining and the transport of minerals without proper documentation in Sahibganj, Jharkhand. A prosecution complaint has been filed before the Special Court (PMLA) in Ranchi.
This complaint is registered under Sections 44 and 45 of the Prevention of Money Laundering Act, 2002, naming CTS Industries Limited and its directors, along with associated companies, as accused. The ED seeks to confiscate assets worth approximately ₹5.39 crore, allegedly acquired through criminal activities.
The ED’s investigation was initiated based on an FIR filed by the Central Bureau of Investigation (CBI). This FIR was lodged against unknown railway officials and CTS Industries Limited at the Pirpainti railway siding in Bhagalpur, Bihar. Additionally, three other original FIRs registered in Bihar and Jharkhand have also been included in this investigation.
The probe revealed that CTS Industries Limited and its directors have been involved in extensive illegal stone mining and transportation in the Mauja Jokmari area of Sahibganj district since 2015.
The company is accused of sending 251 railway rakes through the Pirpainti railway siding without the mandatory JIMMS challan, resulting in significant revenue loss for the government. This includes theft of royalties amounting to approximately ₹11.29 crore for stone chips and ₹5.94 crore for boulders. The investigation also uncovered that bribes were paid to railway officials and other government employees to facilitate these illegal activities.
According to the ED, the accused utilized fake companies and invoices to legitimize the illegally obtained funds. Transactions worth about ₹4.87 crore were conducted under the names of non-existent firms like DS Bitumix and Karan International to portray this amount as ‘clean’ assets.
During the investigation, on October 24, 2024, the ED conducted a raid at the Sahibganj premises of CTS Industries Limited under Section 17 of the PMLA, seizing several incriminating documents, records, and digital devices. An application to retain the seized materials was approved by the PMLA’s adjudicating authority on April 4, 2025. Furthermore, statements from several key witnesses, including the company’s directors, railway officials, and the district mining officer of Sahibganj, have been recorded under Section 50 of the PMLA.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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