According to the agency, Saraf was taken into custody on November 6 under Section 19 of the Prevention of Money Laundering Act (PMLA) and has been remanded to ED custody until November 14.
File Photo: IANS
The Enforcement Directorate (ED) has arrested Arun Saraf, promoter of G D Mining Private Limited, in connection with a major illegal sand mining and money laundering case in West Bengal.
According to the agency, Saraf was taken into custody on November 6 under Section 19 of the Prevention of Money Laundering Act (PMLA) and has been remanded to ED custody until November 14.
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The probe stems from multiple First Information Reports (FIRs) filed by the West Bengal Police, alleging theft and illegal sale of sand transported using forged road e-challans purportedly issued by G D Mining Pvt Ltd.
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In one such instance, the police intercepted two sand-laden trucks near Bhasra Bridge and found that the e-challans accompanying them were fake.
The ED investigation has revealed that Arun Saraf, identified as the key decision-maker in the company, was instrumental in orchestrating the large-scale scam and generating substantial illegal proceeds.
Earlier, on September 8, 2025, the ED carried out searches at 16 locations across Kolkata and Jhargram.
The raids resulted in the seizure of ₹29 lakh in cash from the premises of G D Mining Pvt. Ltd., along with incriminating documents and digital records. Investigators also collected details of several movable and immovable assets linked to the accused and related entities.
According to the ED, the modus operandi involved the use of forged or invalid e-challans to transport illegally mined sand from riverbeds and stock points. The accused allegedly moved sand from stockyards connected to allotted or auctioned mines to unauthorized sites and sold it in the black market.
The illegally earned cash was then laundered and shown as legitimate revenue through falsified entries and unexplained cash deposits in the company’s books of accounts.
“By employing these fraudulent means, the accused indulged in large-scale theft, illegal transportation, and sale of sand, resulting in significant wrongful gains,” the agency said.
Investigators have also found evidence suggesting that the same method was being used by several other operators in the region, indicating a widespread network of illegal sand mining and money laundering.
The ED is now focusing on tracing the layering and placement of the proceeds of crime, including identifying other individuals and entities involved in the racket. Officials stated that further investigation is underway to unravel the entire chain of beneficiaries and financial conduits used to legitimize illicit funds.
Officials said the arrest of Saraf marks a significant step in unearthing the nexus between mining companies, local operators, and financial intermediaries facilitating the laundering of illicit proceeds.
“The agency is committed to following the money trail and bringing all guilty parties to book,” an ED spokesperson added.
Further developments in the case are awaited as the investigation continues.
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