ED Arrests I-PAC Director Vinesh Chandel In Alleged Coal Smuggling Case

The arrest occurred just days before the state’s two-phase Assembly elections scheduled for 23 and 29 April. Chandel, a law graduate and former journalist, has been associated with I-PAC since its inception and is known for his work with the Trinamool Congress (TMC).

According to The Indian Express, Chandel was taken into custody under the Prevention of Money Laundering Act (PMLA) and was expected to be produced before a special court the same night.

The ED’s investigation stems from a Central Bureau of Investigation (CBI) FIR registered in 2020 against alleged coal smuggling kingpin Anup Majee and others, with the agency alleging that Majee’s syndicate stole coal from Eastern Coalfields Ltd and sold it across several districts.

As reported by The Hindu, the arrest is part of a broader probe into alleged money laundering activities connected to the coal scam in the poll-bound state.

Chandel’s arrest follows earlier ED raids on premises linked to I-PAC and its directors in Delhi, Bengaluru, and Kolkata, as well as on former Aam Aadmi Party communications in-charge Vijay Nair in Mumbai.

As highlighted by The Indian Express, the ED stated that I-PAC laundered proceeds of crime amounting to approximately Rs 50 crore. The agency’s investigation uncovered multiple layers of alleged money laundering, including the use of unsecured loans, bogus invoices, and cash movement through hawala networks. Chandel, who holds a 33% stake in I-PAC, was remanded to 10 days of ED custody by a special court after a late-night hearing.

“Proceeds of crime laundered by Indian PAC Consulting Pvt Ltd amount to multiple crores, with Rs 50 crore detected so far.

Searches yielded incriminating material, and statements from connected individuals implicated Chandel, who is liable as a director for offences committed with consent, connivance, or attributable neglect,” a source was quoted as saying by The Indian Express.

Further details indicate that the ED’s case is based on a CBI FIR alleging a multi-crore coal-pilferage scam involving Eastern Coalfields Limited mines in West Bengal.

The ED claims that a hawala operator linked to the alleged coal-smuggling ring facilitated transactions of tens of crores of rupees to I-PAC’s registered company.

The agency also reported that its searches in Kolkata were obstructed by West Bengal Chief Minister Mamata Banerjee, who allegedly took away documents and gadgets during the operation.

The political context has intensified following the arrest. Statements from TMC leaders have raised concerns about the timing of the arrest, with TMC national general secretary Abhishek Banerjee stating, “The arrest of Vinesh Chandel, co-founder of I-PAC, barely 10 days before the Bengal elections, is not just alarming—it shakes the very idea of a level playing field… At a time when WB should be moving toward free and fair elections, this kind of action sends a chilling message: If you work with the opposition, you could be next. That’s not democracy — that’s intimidation!”

Legal proceedings are ongoing, with Chandel’s custody set for 10 days as the ED continues its investigation.

Ongoing hearings are expected to further clarify the extent of the alleged financial irregularities and the involvement of other individuals or entities.

The Supreme Court is also hearing a plea from the ED regarding alleged obstruction by the West Bengal Chief Minister during the agency’s searches.

“The arrest of Vinesh Chandel, co-founder of I-PAC, barely 10 days before the Bengal elections, is not just alarming—it shakes the very idea of a level playing field,” Abhishek Banerjee said in a public statement.

Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.