Enforcement Directorate arrest of I-PAC co-founder Vinesh Chandel linked to West Bengal coal case

The Enforcement Directorate has arrested Vinesh Chandel, an I-PAC co-founder and director, under the PMLA in a money-laundering case linked to an alleged West Bengal coal scam. Officials said he was detained in Delhi and is due in court, as the probe also covers searches in Delhi, Bengaluru, and Mumbai.

The Enforcement Directorate (ED) arrested I-PAC director and co-founder Vinesh Chandel in a money-laundering case tied to an alleged coal scam in West Bengal. Officials said the arrest came weeks before the West Bengal Assembly polls. Chandel was detained in Delhi on Monday evening under the Prevention of Money Laundering Act (PMLA).

An official said Chandel was taken into custody late in the evening. Chandel was expected to be produced before a special court tonight. The ED was likely to seek custodial remand for questioning. The case is linked to alleged illegal coal activity in the poll-bound state.

West Bengal coal scam case and ED action

The ED probe followed a Central Bureau of Investigation (CBI) FIR filed in November 2020. The FIR alleged a multi-crore coal pilferage scam. It was linked to Eastern Coalfields Limited mines in Kunustoria and Kajora. These areas lie in and around Asansol in West Bengal.

The agency earlier said the alleged coal-smuggling network involved a hawala operator. The ED said the operator helped route large transactions. The funds allegedly moved to Indian PAC Consulting Private Limited. This company is the registered entity of I-PAC, according to the ED statement.

West Bengal coal scam searches linked to I-PAC

The ED carried out fresh searches on April 2 as part of the same investigation. Premises linked to Chandel in Delhi were searched. The agency also raided another I-PAC co-founder and director, Rishi Raj Singh, in Bengaluru. Former Aam Aadmi Party communications in-charge Vijay Nair was searched in Mumbai.

Earlier, on January 8, the ED searched the I-PAC office and the Kolkata home of Pratik Jain. Jain is I-PAC’s founder and one of its directors. The searches triggered a political controversy in Kolkata. West Bengal Chief Minister Mamata Banerjee reached the residence with state officials and took away documents.

West Bengal coal scam row over ED searches and documents

The ED said its searches at I-PAC and Jain’s premises were disrupted. It claimed Banerjee and the state administration forcibly took away relevant documents and gadgets. Banerjee and the Trinamool Congress rejected the charge. The party said the ED was trying to seize election-strategy material from I-PAC.

The ED later asked the Supreme Court to order a CBI probe into what it called a "gross abuse of power\" by the CM. The Supreme Court is hearing the matter. The dispute emerged as West Bengal’s election schedule neared. The state will vote in two phases on April 23 and April 29.

West Bengal coal scam backdrop and I-PAC work

I-PAC has been working as a political consultancy for the Trinamool Congress and the West Bengal government since 2021. The ED’s action against Chandel is the latest move in the wider coal-linked laundering case. Court proceedings will decide the next steps, including the ED’s request for custodial questioning.

With inputs from PTI