Several teams of the Directorate of Enforcement (ED) launched simultaneous searches at sand mining sites, sales depots and other locations suspected to be involved in a sand mining scam, across Tamil Nadu, based on allegations of money laundering and large-scale tax evasion, official sources said on Tuesday.
ED officials arrived at more than 25 locations to investigate allegations of money laundering in the sale of a huge quantity of sand mined from riverbeds and sold at designated sand depots or sales points managed by the T.N. Water Resources Department.
As per the existing practice, sand is sold online through the website of the Water Resources Department and an e-receipt issued at the depots. While e-receipts are issued for online sales, the allegation is that a sizeable quantity of sand is sold offline, and not brought into the record on a daily basis. Investigating officials are probing into whether tax was credited to government accounts from the e-bills issued to thousands of lorry owners/operators, the sources said.
