ED Arrests Promoter of G D Mining Pvt. Ltd. in Illegal Sand Mining Case.

Headnote:

The Directorate of Enforcement (ED) arrested Arun Saraf, promoter of G D Mining Pvt. Ltd., for his alleged involvement in an illegal sand mining and money laundering racket. The arrest was made under Section 19 of the PMLA, and Saraf has been remanded to ED custody till 14 November 2025. The case stems from multiple FIRs filed by the West Bengal Police alleging large-scale theft and illegal sale of sand using forged e-challans.

Background:

1. The ED investigation was initiated based on FIRs registered by the West Bengal Police regarding theft and unauthorized sale of sand.
2. The FIRs revealed that sand was being illegally transported using forged road e-challans allegedly issued by G D Mining Pvt. Ltd.
3. In one FIR, two sand-laden trucks near Bhasra Bridge were caught with fake road e-challans, leading to police seizure of vehicles and documents.
4. Earlier on 08 September 2025, ED conducted searches at 16 locations in Kolkata and Jhargram, seizing ₹29 lakh, along with incriminating documents and digital evidence.

Findings:

1. Arun Saraf was identified as the key decision-maker in G D Mining Pvt. Ltd. and the principal orchestrator of the illegal sand mining operations.
2. The company allegedly used forged or invalid challans to transport stolen sand from rivers and stock points, disguising the sand as legally mined material.
3. The illegal cash proceeds from these activities were integrated into regular accounts through unexplained cash deposits, constituting money laundering under PMLA.
4. The investigation uncovered a systematic criminal network involved in the theft, illegal transportation, and sale of sand, resulting in large-scale unlawful profits.

Court’s/Authority’s Observations:

1. The ED highlighted that the modus operandi used for illegal sand mining and laundering of illicit proceeds is being employed on a large scale.
2. Further investigation is ongoing to identify the role of additional persons, trace proceeds of crime, and uncover layering and placement of funds.

Legal Provisions Discussed

1. Section 19, Prevention of Money Laundering Act, 2002 – Power to arrest.
2. Sections of the Indian Penal Code and relevant mining laws invoked in West Bengal Police FIRs concerning theft, forgery, and illegal extraction of minerals.

Status

1. Arun Saraf remains in ED custody until 14 November 2025.
2. Investigation into other beneficiaries, laundered assets, and property trails continues.