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ED Raids i-PAC Offices in Coal Smuggling Probe

  //house-home.news-articles.net/content/2026/02/0 .. raids-i-pac-offices-in-coal-smuggling-probe.html
  Published in House and Home on Monday, February 2nd 2026 at 19:35 GMT by ThePrint
      Locales: West Bengal, INDIA

Kolkata/New Delhi/Ghaziabad - February 3rd, 2026 - The Enforcement Directorate (ED) continues its investigation into alleged hawala transactions linked to a sprawling coal smuggling case, with recent raids on the offices of Indian Political Action Committee (i-PAC) taking center stage. The coordinated searches, spanning Kolkata, New Delhi, and Ghaziabad, commenced on Wednesday and are focused on tracing the source and destination of funds purportedly used in electioneering activities, particularly within West Bengal and other key states.

Sources within the ED indicate the agency is meticulously examining financial trails to determine if i-PAC's services were financed through illicit means. The raids involved the seizure of numerous documents and electronic devices, which are currently undergoing forensic analysis. This investigation builds upon an existing probe into illegal coal mining operations in West Bengal and the subsequent laundering of funds derived from these activities. Several individuals - including former state government officials and prominent businessmen - have already been arrested in connection with the broader case.

The i-PAC, a well-known political consultancy and election strategy firm, has previously worked with several major political parties, including the Trinamool Congress (TMC) in West Bengal, and has played a significant role in shaping election outcomes. The ED's scrutiny now extends to whether these successful campaigns were underpinned by illegally obtained funds. The agency alleges a potential link between the coal smuggling racket and the financing of i-PAC's activities, though concrete evidence is still being compiled.

West Bengal Chief Minister Mamata Banerjee swiftly condemned the ED raids, characterizing them as a politically motivated "vendetta" designed to harass her party and disrupt the upcoming electoral landscape. During a press conference held on Wednesday, Banerjee argued that the targeting of i-PAC was a deliberate attempt to undermine the TMC's grassroots connect with voters, claiming the agency's actions were a direct response to the party's past successes utilizing i-PAC's services. "This is a clear example of the central government misusing investigative agencies to silence opposition," she stated.

The i-PAC, in a formal statement, has vehemently denied any wrongdoing, asserting full cooperation with the ED's investigation. They maintain that all financial transactions are transparent and in accordance with legal regulations. However, the agency's continued focus on i-PAC's financial records suggests lingering concerns about potential irregularities. Sources close to i-PAC have suggested the raids are disproportionate and intend to damage the firm's reputation.

The Bharatiya Janata Party (BJP) has consistently accused the TMC of complicity in the coal smuggling scandal. Party leaders have repeatedly called for a "thorough and impartial" investigation, alleging that funds from illegal coal mining were systematically diverted to finance TMC's political activities. They cite the ED's investigation as a validation of their long-held claims. The TMC, predictably, has dismissed these accusations as baseless propaganda, accusing the BJP of weaponizing the ED to suppress political dissent and weaken opposition parties.

The unfolding situation raises several crucial questions about the intersection of political strategy, financial transparency, and investigative overreach. Legal experts suggest the ED must present compelling evidence linking i-PAC directly to the illegal coal mining operation to substantiate the allegations. The case also highlights the growing concerns regarding the use of "hawala" networks--informal value transfer systems--to finance political campaigns and evade regulatory scrutiny.

Beyond the immediate legal battles, the i-PAC investigation carries significant political implications. The timing of the raids, with state elections looming, has fueled accusations of political bias. The outcome of the investigation could have a profound impact on the electoral dynamics of West Bengal and potentially set a precedent for future scrutiny of political consulting firms involved in electioneering. Furthermore, the case is likely to reignite the debate surrounding campaign finance reforms and the need for greater transparency in political funding.