The inside on network of Coal Mafias

The nefarious nexus between coal mafias, coal company officials and police has ensured illegal mining is a booming trade in the coal belts of Jharkhand.

The annual smuggling racket of 7, 20, 000 tonnes of coal from Jharkhand is carried out by more than 50, 000 people. The coal Mafias have raised organised gangs to carry out this smuggling successfully. These well organised gangs have the support from the officials of the coal companies, police, politicians, and the government officials.

The otherwise closed mines of Ranchi, Ramgarh, Hazaribagh, Giridih, Dhanbad, Bokaro have become a source of earning for thousands of people. Once the CCL and BCCL complete its task of mining, the mines are completely taken over by the coal mafia. Beyond a point, the coal companies avoid digging coals from the open cast mines as it is also pertinent from the security point of view. As per the directions from environment related departments, once mining is complete the open cast mines should be levelled by refilling it but in most of the case it is not done.

As per estimates there are more than 2000 such open cast mines in Jharkhand including both small and big ones. The powerful local mafia usurps such mines and employs labour including those from the coal companies on daily wages.
The coal mafia has erected two networks to smuggle from such mines. The cycle carriers are the backbone of the transport network. The number of such cycle carriers in Hajaribagh and Ramgarh alone is around thousand which transport around 3-4 tonnes of coal per day. One can always witness such carriers carrying coal onthe Ranchi-Hazaribagh road. Most of the carriers are the refugees and people belonging to Akhiri Community. These cycle carriers purchase the coal from coal mafia at the cost of Rs 300 per quintal which is later sold at Ranchi and the markets around Rs 1200-1500per quintal. The profit also includes the cut for police. Normally, the cycle carriers make two trips per day. After travelling such long distances of around80 kilometers these carriers are able to earn thrice of what they would have earned as minimum wage.

Incase of bigger mafias, the coal is smuggled out with the help of 'Disco Paper'. 'Disco paper' is the fake permit which is issued by the police and is valid in all the police stations right from Dhanbad to Varanasi. Such permits are issued by the agents of coal mafia in different colour papers with sometimes in Blue or Yellow or at times on white paper. This paper contains the number of the truck, the coal agent’s name and a seal. By showing this 'Disco paper', which is even attested at police stations, the truck smoothly passes all the checkposts on the way and reaches the coal market of Varanasi. This unique method of smuggling has succeeded with the collaboration of the police and the coal mafia. The sources reveal that this paper was started by a Superintendent of Police who was close to the then Chief Minister around 12years back. This paper is like an agreement between the coal mafia and the police.

The police ensure the smooth movement of the trucks full of illegally mined coaland in return they receive the amount as fixed. As per an estimate around 500 trucks of illegally mined coal moves with the help of 'Disco Paper'. Suman Gupta who is posted as the Superintendent of Police at present has clamped upon this collaboration of police and the coal mafia.

The method of coal smuggling was initiated by Manager Rai who belonged to Nirsa. This later saw the rise of people like Iqbal and Allah Rakha. Once the present SPSuman Gupta started clamping on this racket, Manager Rai left the trade and is running a sponge iron factory in Barbil, Orissa.

The coal smuggled with the help of 'Disco paper' is supplied to the sugar factories of Uttar Pradesh, Coal Market and Sponge Iron factories. The scale of the smuggling is said to be of the tune of Rs 400 crore.

The coal mafia also operates by getting the coal pilfered from the open rail wagons. The men and women from poor background are used as carriers in this. The operator of such racket is normally a big man who has his own market network. This market is widely spread right from Ranchi, Bokaro, Hazaribagh, Raniganj, Burdwan, Varanasi, Lucknow, Raipur and Orissa.

This theft of coal flourishes along the rail routes of Ranchi, Dhanbad, Ranchi-Hazaribagh Road, Ranchi-Burdwan and Dhanbad-Raniganj. Thetask of coal theft is a well organised network. It is estimated that the coal companies lose 25 percent of their coal while in transport. Many leaders ofAJSU, JMM and Congress run their politics with the money generated from this coal smuggling.

This corporatised syndicate pays a cut to even the officials of CCL and BCCL. A profit budget is formed with the team work of the officials of the Coal Companies and the Coal mafia. It is after this budget is decided that the formulae like CCL and BCCL show Budget Shortage, the decline in the production and picking lesser coal than what is supposed to are devised. Central Bureau of Investigation is investigating the matter related to coal shortage in CCL and BCCL and the matter of picking lesser coal.

This is the way by which coal is getting smuggled at the highest level. The matter of shortage of one lakh tonne of coal in BCCL is part of this. One retired employee of CCL says that the coal smuggling commences parallel to the work of the coal company and nobody has the power to stop it. Although, the smugglers are seen in Dhanbad and Ranchi but their anchor men roam in the power corridors of the Delhi.