From Bihar to Rajasthan: How a Rs 130 Crore Sand Mining Scam Spread Across States

The Enforcement Directorate (ED) on Friday launched a multi-state crackdown in an alleged illegal sand mining and money laundering case involving more than Rs 130 crore, carrying out searches across Bihar, Delhi and Rajasthan. The operation is one of the agency’s biggest actions in recent months against suspected illegal mining networks operating in Bihar.

Officials said simultaneous raids were conducted at eight locations in Banka and Patna districts of Bihar, Delhi-NCR, and Rajasthan’s Jaipur and Sri Ganganagar under the provisions of the Prevention of Money Laundering Act (PMLA). Investigators are examining financial records, digital devices, bank transactions and company documents to trace the alleged proceeds of crime.

At the centre of the investigation is Mahadev Enclave Private Limited, a company that allegedly carried out large-scale illegal sand mining in Bihar’s Banka district over several years. According to the ED, the company is controlled by members of the Chandak family from Rajasthan, with Ashok Chandak and his son Raghav Chandak said to be managing its operations.

IIT Patna report triggered the probe

The money laundering investigation stems from an earlier inquiry conducted by Bihar’s Mines and Geology Department. During the investigation, the ED sought a geospatial analysis of sand ghats in Banka from IIT Patna to determine whether mining activity exceeded the permitted limits.

The institute’s remote sensing study reportedly found evidence of extensive illegal excavation. Based on these findings, the ED shared its observations with the Bihar State Mining Corporation Limited under Section 66(2) of the PMLA, paving the way for further action by state authorities.

The Bihar Mines and Geology Department subsequently registered an FIR on August 21, 2025. That FIR later became the basis for the ED’s money laundering case.

Alleged illegal mining worth over Rs 131 crore

According to investigators, Mahadev Enclave illegally extracted sand between the financial years 2015-16 and 2022-23. The agency estimates that the value of the illegally mined sand exceeded Rs 131 crore, causing substantial losses to the state exchequer through unpaid royalties and illegal commercial exploitation of natural resources.

Officials are also looking into the financial trail to determine how the alleged proceeds were generated, transferred and invested. The searches are aimed at identifying assets acquired using suspected illegal earnings and uncovering any wider network linked to the mining operations.

No arrests or seizures had been officially announced till the filing of this report.

Why illegal sand mining is a serious issue

Illegal sand mining has emerged as one of the country’s biggest environmental and economic challenges. Sand is a key raw material for the construction industry, making it highly valuable and often vulnerable to organised illegal extraction.

Apart from causing massive revenue losses to governments, unauthorised mining damages river ecosystems, accelerates erosion, lowers groundwater levels and threatens biodiversity. It has also been linked to organised criminal networks, violence against officials and large-scale money laundering.

Part of a wider crackdown in Bihar

The latest action is not an isolated case. Over the past two years, the ED has intensified its investigation into Bihar’s alleged illegal sand mining syndicates.

In February 2024, the agency attached assets worth Rs 26.19 crore linked to JD(U) MLC Radha Charan Sah in an alleged illegal sand mining case.

A month later, in March 2024, ED arrested RJD leader Subhash Prasad Yadav and conducted raids across multiple locations after recovering more than Rs 2.3 crore in cash during an investigation related to alleged illegal sand trade involving Broadsons Commodities Pvt. Ltd.

The agency also carried out searches in December 2024 at premises linked to former MLA Hulas Pandey as part of the ongoing probe into suspected illegal sand mining operations.

The latest searches indicate that investigators are now examining not only the mining activity itself but also the financial networks that allegedly enabled the proceeds from illegal excavation to move across state borders. With searches still underway, officials say further action will depend on the evidence collected during the raids.

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