Illegal sand mining in Tamil Nadu costs Rs 4,730 crore

An Enforcement Directorate (ED) report reveals widespread corruption linked to illegal sand mining in Tamil Nadu from 2020 to 2023. The dossier highlights the involvement of contractors, politicians, and bureaucrats in a complex operation that caused serious environmental damage and financial misconduct. The report shows that over the past few years, 209 pieces of heavy machinery were sold to companies linked to the SR Group. These machines were used for illegal mining in areas beyond allowed limits. GPS data confirmed their operation in unauthorized zones like Kandaneri and Arumparuthi. Government officials acknowledged that mining activities were far beyond what is legally permitted. Despite a government system to manage sand extraction, contractors ignored rules and took more sand than allowed. They used unrecorded cash transactions for the illegally mined sand and received support from corrupt officials. Heavy machinery such as excavators was deployed in violation of mining laws. A firm led by IIT graduates reported that illegal excavation was 10 to 30 times over the allowed limit, resulting in about 23.64 lakh units of sand being mined unlawfully. This has caused an estimated loss of Rs 4,730 crore to the state. The illegal mining operations covered about 105 hectares, far exceeding the permitted 4.90 hectares. Key figures in the illegal trade, such as S Ramachandran and P Karikalan, controlled operations through proxy fronts. They formed a close-knit network, with the SR Group being a major player in the mining activities. Reports indicated that officials admitted to the large-scale illegal mining and the high black-market rates for sand. The study concludes that profits from illegal sales were used to finance the machinery. The money was moved through various accounts to hide its source, indicating a clear money laundering scheme. The ED dossier underscores the deep corruption in the illegal sand mining sector in Tamil Nadu and its harmful effects on the environment and state finances.