ED Seizes Rs 2.5 Crore in Cash in Raids on Sand Mafia Operations in Odisha

Bhubaneswar: The Enforcement Directorate (ED) on Saturday seized around Rs 2.5 crore in unaccounted cash during extensive raids on alleged sand mafia operations in Odisha’s Ganjam district, exposing what officials described as a long-running nexus involving illegal mining, liquor trade and financial irregularities.

The cash, largely in Rs 500 denomination notes, was recovered from large almirahs during searches at the residence of BJD leader Hrushikesh Padhi and multiple other premises linked to influential sand and liquor operators. ED teams conducted coordinated searches at nearly 25 locations across Ganjam and adjoining areas as part of a money-laundering probe under the Prevention of Money Laundering Act (PMLA).

According to officials familiar with the investigation, the crackdown followed inputs from a recent Comptroller and Auditor General (CAG) report that flagged large-scale irregularities in sand mining, revenue leakages and weak enforcement mechanisms in Odisha. Rivers such as the Rushikulya, Bahuda and Bada Nadi were allegedly exploited for years through illegal extraction and transportation of sand, causing significant losses to the state exchequer.

During the raids, investigators also unearthed evidence pointing to an organised illegal country liquor network operating alongside the sand trade. Sources said several unlicensed liquor units were allegedly run with proceeds generated from illegal mining activities, indicating a broader syndicate structure.

Officials further detected the use of fake Y-forms, manipulation of sand auction processes, and unauthorised transportation routes to evade royalties and taxes. BJD leader Krupasindhu Muduli has been identified by the agency as a key figure allegedly coordinating the syndicate’s operations, though no formal charges have yet been announced.

In addition to cash, the ED seized incriminating documents, property papers worth several crores, bank transaction records and multiple luxury vehicles during the operation. Officials said forensic analysis of financial trails is underway to identify beneficiaries and establish links between political figures, contractors and shell entities.

The ED has maintained that further action, including possible arrests and attachment of assets, will depend on the outcome of ongoing investigations.