INDIA. Mumbai: The Enforcement Directorate (ED) has taken legal action by filing a complaint in the PMLA Court, Khurda, Bhubaneshwar in Odisha, against former MLA Jitendra Nath Patnaik and a partnership firm M/s B.D. Patnaik.
The charges stem from their alleged involvement in running an illegal mining business, which has reportedly resulted in a loss of Rs. 130.39 crore to the exchequer.
Patnaik, who formerly represented Champua Constituency as an MLA, operated the mining business from 1989 to 2009 without the necessary mining lease from the State Government and clearances from the Union Ministry of Environment. This information was disclosed in a statement issued by the ED on Wednesday.
The ED initiated the complaint on October 31, commencing its investigation based on the First Information Report (F.I.R) registered by the Balasore Vigilance Police Station. Subsequently, a Chargesheet was filed by the Vigilance Cell of Cuttak Police station under various sections of the Prevention of Corruption Act, 1988, Indian Penal Code 1860, Forest Conservation Act, 1980, Mining & Mineral (Development & Regulation) Act, 1957, and Mineral Conservation and Development Rules, 1988 against Patnaik and 14 public servants in connection with the alleged illegal mining activities.
It has been alleged that Patnaik diverted the illegally obtained proceeds into his other business ventures, benefiting himself and his family members.
Earlier, on May 11, 2022, the ED conducted search operations under the Prevention of Money Laundering Act, 2002, at his premises in Bhubaneswar and Joda, Keonjhar, which resulted in the seizure of Fixed Deposits amounting to Rs. 133.17 crore and Indian Currency worth Rs. 70.01 lakh.
During the search operations, various incriminating documents and digital evidence were seized. The PMLA Adjudicating Authority in New Delhi allowed ED to retain the seized properties, as per an order dated November 01.
On Wednesday, ED officials carried out raids at two locations belonging to Patnaik in Bhubaneswar and two in Joda, Keonjhar district, including his residence near the Sai Temple at Joda, his office at Baneikala Chawak, and another house in the Surya Nagar area of Bhubneshwar.
In a separate case, the Chief Metropolitan Magistrate’s court in Kolkata extended the custody of West Bengal minister and Trinamool Congress MLA Jyoti Priya Mallick, who was arrested on October 27 for alleged corruption in ration distribution during the COVID-19 lockdown. His custody was extended until November 12.
The charges against Mallick pertain to alleged corruption in the distribution of rations during the COVID-19 lockdown, a period when he served as the West Bengal food minister. He currently holds the forests portfolio.
Mallick had previously been remanded to ED custody for 10 days, but shortly after his arrest, he was admitted to a private hospital due to high blood sugar and renal issues. He was discharged on October 3.
Mallick faces charges related to fake paddy procurement and the siphoning of Public Distribution System (PDS) ration items into the open market during his tenure as the Food and Supplies Minister from 2011 to 2021.
The ED’s investigation was initiated based on various FIRs registered by the West Bengal Police, revealing the involvement of private individuals in storing and selling subsidized/Public Distribution System (PDS) wheat flour/atta without a valid license.
In other FIRs filed by the Kolkata Police, it was discovered that rice millers had opened bank accounts in the names of fake farmers, diverting Minimum Support Price (MSP) funds intended for genuine farmers.
The ED investigation uncovered that approximately 30% of PDS ration meant for Priority Households (PHH), RSKY, and Antyodaya Anna Yojana (AAY) beneficiaries had been diverted to the open market, with the proceeds of these activities shared between the millers and the PDS distributors.
Multiple searches conducted on October 11, 26, and November 4 resulted in the seizure of the proceeds of crime amounting to Rs. 1.42 crore, in addition to Rs. 16.87 crore in bank accounts of shell entities that were frozen.
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