The Enforcement Directorate (ED) on Monday, November 27, informed the Madras High Court (HC) that illegal sand mining sales have taken place in Tamil Nadu to the tune of Rs 4700 crores (approx) over the last 1-2 years. These figures were presented after the ED collected satellite imagery from the database of the National Remote Sensing Centre (a unit of ISRO) and through assessments conducted by an expert team. According to the report provided by ED, sand mining which was only permitted in 28 sites- a total of 196.37 hectares- has taken place in 987.10 hectares of land.

The Madras HC bench, consisting of SS Sundar and Sunder Mohan, noted that the ED has issued summons without identifying the proceeds of crime and that the irregularities to the tune of Rs 4700 crores (approx) has been arrived at upon mere suspicion. “How can you issue summons without identifying the proceeds of crime? The intention is something,” the bench said.  ARL Sundaresan, the Additional Solicitor General (ADG) who appeared for the ED argued, “Proceeds of crime have already been generated, concealed, transferred, etc. We are bound to investigate into that. It is the wealth of the country that is being exploited.”

However, the bench clarified that the ED should have a crime and proceeds of crime and that they cannot initiate a probe based on a survey.

Noting that the summons have been issued under the Prevention of Money Laundering Act (PMLA), Tamil Nadu’s representative Dushyant Dave, contended that the said offence of mining does not fall under the PMLA. The bench in response said that the ED can continue their investigation but not under the PMLA. 

At the hearing, the state’s representative also posed the question of why action isn’t initiated against people committing such crimes in BJP-ruled states . He noted that there are 8,000 registered mining violations in Uttar Pradesh,4,500 in Haryana and 4,000 in Maharashtra.

It is to be noted that the Tamil Nadu state government on Monday challenged the issue of summons to district collectors by the Enforcement Directorate (ED), in the Madras HC regarding a money laundering case linked to illegal sand mining. The court has reserved orders for Tuesday, November 28.