ED, Shillong has conducted search operations on 28.01.2025 under the provisions of PMLA, 2002 in several places in Guwahati and Kolkata connected to illegal coke plants in Meghalaya which were shut down due to an order of the Meghalaya High Court in PIL No. 14 of 2022. During the searches, cash amounting to Rs.14.2 Lakh and various incriminating documents have been found and seized

Purpose

The Directorate of Enforcement (ED), Shillong Sub-Zonal Office, conducted search operations on January 28, 2025, under the Prevention of Money Laundering Act (PMLA) 2002 in Guwahati and Kolkata. The operation aimed to investigate alleged money laundering activities connected to the shutdown of illegal coke plants in Meghalaya, as ordered by the Meghalaya High Court in PIL No. 14 of 2022.

The purpose of this press release is to inform stakeholders about the ED’s investigation into the illegal coke plant industry in West Khasi Hills District, Meghalaya. The operation aims to uncover and seize proceeds of crime generated through the sale of illegally mined coal and processed coke. By conducting thorough investigations, the ED seeks to bring those responsible for these illegal activities to justice.

Effects on Industry

The shutdown of 57 illegal coke plants in Shallang area of West Khasi Hills District, Meghalaya, has had a significant impact on the local economy. The sudden closure of these plants resulted from a joint operation by the police and ADC-Cum-SDO (Civil), Mawshynrut Civil Sub-Division. This action has disrupted the supply chain of coal and processed coke in the region.

However, the ED’s investigation into the alleged money laundering activities connected to the shutdown may lead to further disruptions in the industry. The seizure of proceeds of crime and incriminating documents may also affect companies operating in the coal and coke sectors. As a result, businesses and consumers associated with these industries should be aware of potential changes in market dynamics.

Relevant Stakeholders

The ED’s investigation is relevant to various stakeholders, including:

• Businesses and individuals operating in the coal and coke sectors
• Local authorities responsible for regulating mining activities in Meghalaya
• Consumers reliant on coal and processed coke for industrial or commercial purposes

These stakeholders should be aware of potential changes in market dynamics resulting from the ED’s investigation.

Next Steps

To comply with or respond to this update, relevant stakeholders may need to take the following actions:

• Companies operating in the coal and coke sectors should monitor developments in the industry and adjust their business strategies accordingly
• Local authorities responsible for regulating mining activities should ensure compliance with regulations and laws governing the industry
• Consumers reliant on coal and processed coke should be aware of potential disruptions in supply chain and adjust their procurement processes as necessary

Any Other Relevant Information

Additional details related to this update include:

• The ED’s investigation has revealed that some coke plants were operating illegally, while others were run without required permits or environmental regulations.
• The actual operators of these illegal coke plants were mostly from Assam, and the business was often run in a benami manner, with locals from Meghalaya being shown as owners.
• Further investigation is under progress to uncover more proceeds of crime and bring those responsible to justice.