Odisha 90 Billion Rupee Coal Money Laundering Case

In 2025, Indian federal agencies uncovered a colossal money laundering operation in Odisha, siphoning off 90 billion rupees (approximately 10.8 billion USD) from illegal coal mining and fraudulent coal block allocations. The Enforcement Directorate (ED) revealed a complex web of over 200 shell companies used to layer illicit proceeds through bogus invoices, inflated mining contracts, and benami transactions. The mastermind, a former state mining minister Prakash Chandra Sahoo, along with corporate executives like Amit Bansal of Mahanadi Coal Fields Private Limited, was arrested. Investigations showed that coal extracted beyond permitted limits was sold in the black market, with the proceeds funneled into real estate and offshore accounts. The case emerged from a whistleblower complaint and exposed deep-rooted collusion between politicians, bureaucrats, and the mining mafia.

As of mid-2026, the trial is ongoing in a special PMLA court under the monitoring of the Supreme Court. Three main defendants remain in judicial custody after multiple bail rejections. The ED has attached properties worth 42 billion rupees, and extradition requests have been filed for two associates in Dubai.

The primary legal disputes centered on the admissibility of digital evidence recovered from encrypted servers overseas, and whether the Prevention of Money Laundering Act (PMLA) could be applied retrospectively to coal block allocations made before 2020. Additionally, the defense challenged the ED's jurisdiction over state-level mining offenses, arguing it was a state subject. The identification of beneficial owners behind layered shell companies also proved contentious.

The scandal severely eroded public trust in Odisha's mining governance and triggered a political crisis, with opposition parties demanding the chief minister's resignation. It led to sweeping reforms in coal block auction transparency and the mandatory digitization of mining records. Civil society groups intensified their advocacy for a stronger Lokpal oversight mechanism, and the case became a benchmark for India's fight against black money in the natural resources sector.