The investigation stems from a 2020 CBI FIR against alleged coal smuggling kingpin Anup Majee. ED alleges that the proceeds of crime were laundered through Hawala channels, with the transactions routed to I-PAC.
In an official statement after searches in West Bengal and Delhi, the ED said a “large chunk” of coal illegally extracted from ECL lease areas was sold to manufacturing units operated by the Shakambhari Group.
The agency said the stolen coal was supplied to factories in districts like Bankura, Purulia and Bardhaman.
The probe stems from an FIR registered by the CBI in 2020 against alleged coal smuggling kingpin Anup Majee and others.
According to the ED, the investigation has unearthed a multi-layered money laundering mechanism in which hawala operators were allegedly used to route the proceeds of crime.
One of these operators is suspected of facilitating transactions worth “tens of crores of rupees” to India’s PAC Consulting Private Limited (I-PAC), the agency said.
Search operations on Thursday covered six locations in West Bengal and four in Delhi, targeting properties linked to generation, movement and laundering of proceeds from the illegal coal trade, the ED said.
The Shakambhari Group, led by Chairman and Managing Director Deepak Kumar Agarwal, is one of the largest integrated steel manufacturers in West Bengal.
The group operates several sponge iron, steel and power stations and markets products under brands such as ‘Thermocon’ and ‘Elegant’.
None of the Shakambhari Group companies are listed on any stock exchange.
According to publicly available financial data, the group reported a turnover of Rs 5,533.69 crore in the financial year 2023-24, which increased by almost 10 per cent to Rs 6,098.39 crore in 2024-25.
Over the years, it has expanded by acquiring and reviving industrial assets through the National Company Law Tribunal (NCLT), including units like SPS Steels, Vikash Metal, Bravo Sponge Iron and Ess Dee Aluminum.
The ED alleged that illegally mined coal was a crucial input to several of the group’s sponge iron and power plants, putting its procurement practices under scrutiny.
Meanwhile, searches at I-PAC director Pratik Jain’s residence in Kolkata sparked a political row, with Chief Minister Mamata Banerjee visiting his Loudon Street residence and the company’s Salt Lake Sector V office during the raids.
Banerjee alleged that the searches were politically motivated, a charge dismissed by the ED, which said the visits amounted to obstruction of an investigation under the Prevention of Money Laundering Act.
Agarwal could not be reached for comment.
Published on January 8, 2026
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