Analysis

ED raids on Quarries of Sand Mafia in Tamil Nadu

9 months ago
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ED raids

The Enforcement Directorate (ED) has been conducting raids on sand quarries in various regions of Tamil Nadu. These actions are being undertaken as part of an investigation into accusations that a significant volume of sand has been unlawfully extracted from riverbeds and then sold. 

A raid was carried out at a sand quarry in the Ariyalur area on Sunday. An investigation was conducted about the quarry situated along the banks of the Vellar River in response to complaints alleging that mining activities were exceeding the authorised limit of five feet by a maximum of 15 feet from the river bed. The sale was conducted by circumventing the Internet system, resulting in significant financial loss to the public purse.

Sand Price Hike

The frequent incidents of raids within the state have resulted in an incredible surge in sand costs, casting a cloud of doubt over vital construction undertakings. In the city of Chennai, there has been a significant increase in the price of river sand, rising from Rs 7,000 per unit (100 cubic feet) to Rs 10,000. Additionally, the availability of river sand in the market has become extremely limited. In several alternative markets, such as Salem, Trichy, and Namakkal, price has risen substantially, with the cost per unit rising from Rs 3,000 to Rs 8,000.

Due to the increasingly dire circumstances, numerous construction ventures in various districts, such as Erode, Karur, Salem, and Tiruchy, have gone with manufactured sand (M-sand). Nevertheless, there has been an enormous spike in the cost of M-sand, rising from Rs 2,500 to Rs 4,000 per unit. According to S Yuvaraj, the head of the Tamil Nadu State Sand Lorry Owners’ Association, the government’s allocation of river sand is limited to a range of 50 to 60 loads per day, which falls short of the substantial demand.

Fraudulent Transactions

The availability of sand has dropped drastically while the demand for it has witnessed a sharp increase, primarily due to the closure of several quarries due to the enforcement actions taken by the ED. The seizure of vital equipment by the executive director has greatly hampered the functioning of the department. In the state of Tamil Nadu, customers are required to procure river sand upon the approval of their building designs. 

The sand has the option of being reserved through online booking platforms, as well as being acquired through cash transactions at designated bank extension counters. As per a government directive issued on January 6, 2022, it has been observed that despite the establishment of a predetermined base price of Rs 1,000 per unit for river sand, government depots have been found to be selling sand without adhering to normal billing procedures, hence neglecting the additional costs associated with transportation and toll charges.

DMK Minister’s Corruption

In the month of September, the enforcement division (ED) conducted visits to locations that were suspected of being involved in illicit operations. In addition, Chennai’s Public Works Department (PWD) office was subjected to a raid. The agency also conducted raids on the offices and residences of industrialists S Ramachandra, Karikalan, and Dindigul Rathinam, who had licenses for sand mining.

The Tamil Nadu ministers have recently been scrutinised by the Enforcement Directorate (ED). On June 14, the agency apprehended Minister Senthil Balaji on allegations of engaging in money laundering activities, according to a case that originated in 2014. In July, the agency conducted an inquiry involving K Ponmudi, the higher education minister, and his son Gautham Sigamani, a legislator.

The Prime witness for ED in the Sand mining case, A Muthaiya has gone missing. He gave a confession statement to ED regarding the irregularities and deep-rotted corruption involving ministers and their aides. Tamil Nadu BJP President K Annamalai demands the sacking of Minister Pondmudi for the remarks passed by the Madras HC in the sand mining case. Further, he stated that law and order is pathetic in TN and that the government should seriously act to stop illegal sand mining. The depletion of groundwater is increasing due to such horrendous activities.

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