Inside ‘Lala Pad’: How ₹20 notes and WhatsApp kept Bengal’s coal mafia running
How the racket works
According to ED, the operation relied on a well-organized network of fake transport documents, a WhatsApp-based clearing system and an underground hawala channel to move illicit funds.
Investigators found that illegally mined coal was supplied to selected companies in West Bengal, and these companies allegedly purchased it for cash. This helped conceal the proceeds of crime and present them as legitimate transactions.
At the heart of the operation was the illegal transport challan system known as “Lala Pad”. These were fake tax invoices issued in the name of non-existent entities to facilitate the movement of illegal coal without inspection.
To ensure a smooth transition, the union used a unique identification method. With each fake challan, transporters were given a ₹10 or ₹20 note. They were instructed to take a photo of the note next to the vehicle’s license plate and send the image to the union operator.
The banknote’s serial number and vehicle registration number were used as matching identifiers. The operator would then distribute these images via WhatsApp to police personnel and other officials along the route to ensure that vehicles were not stopped or were quickly released if stopped.
The ED also uncovered a parallel hawala network used to transfer money from illegal trade. Funds were directed to intermediaries and beneficiaries, including those allegedly linked to political figures and officials.
Transactions on the Hawala chain were verified using the same identifier system (typically by matching the serial number of a banknote shared between the sender and receiver), allowing the transfer of cash without any official documentation.
