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Police Uncover Alleged Rs 120-Crore Interstate Khair Smuggling Network
Police in Chhattisgarh say they uncovered a large network that illegally moved khair wood.
Khair wood is used to make katha, an ingredient in paan.
The investigation began after police stopped a truck carrying 23,350 kilograms of wood from Odisha.
The paperwork for the shipment was allegedly forged.
Police say the network operated across six states using several routes and companies.
They have seized more than 50 tons of wood and arrested 12 people.
Investigators also suspect that fake invoices and bank accounts were used to move money.
One alleged middleman, Manish Agarwal, says there is no evidence that he forged documents or deceived anyone.
Mahasamund police intercepted a truck on June 17 carrying 23,350 kg of khair wood from Odisha.
The truck allegedly carried a forged National Transit Pass System clearance certificate from the Forest Department, Kurnool.
Police say they seized more than 50 tons of khair wood and arrested 12 people during raids across six states.
Investigators allege eight shell firms and more than 10 mule accounts were used to move proceeds from fake invoices worth Rs 120 crore.
Manish Agarwal, described as a middleman, received anticipatory bail in this case but remains in custody in a separate smuggling case.
- Who
- Chhattisgarh Police, including Mahasamund district police, are investigating businessmen and other accused linked to the alleged network.
- What
- An alleged interstate network illegally sourced, transported and sold khair wood using forged transit documents, shell firms and mule accounts.
- Where
- The alleged operation involved Odisha, Chhattisgarh, Maharashtra, Madhya Pradesh, Uttar Pradesh, Jharkhand, Haryana and Himachal Pradesh.
- When
- The truck was intercepted on June 17; the case was registered on July 9, and police said the investigation had continued for about three months.
- Why
- Police allege that khair trees were cut illegally and the wood was moved to katha-making companies using forged documents, while proceeds were transferred through shell firms and mule accounts.
Police Allegations
Agarwal's Legal Defense
Role in the network
Police Allegations
Police identify Manish Agarwal as being at the alleged centre of the network and linked to shell firms and businessmen connected to katha companies.
Agarwal's Legal Defense
Agarwal's court plea describes him as a middleman and argues that there is no material showing his involvement in forging the transit documents or deceiving anyone.
Financial activity
Police Allegations
Investigators allege that fake invoices worth Rs 120 crore and more than 10 mule accounts were used to move or launder proceeds.
Agarwal's Legal Defense
The available account of Agarwal's defense does not allege that he controlled the invoices or accounts; it challenges the basis for linking him to the alleged document forgery and deception.
Custody and allegations
Police Allegations
Police have seized Rs 81 lakh from Agarwal's premises and named him in multiple FIRs and forest offence reports.
Agarwal's Legal Defense
Agarwal obtained anticipatory bail in this case, although he was later arrested by Raigarh police in a separate khair wood smuggling case and is in judicial custody there.
Key facts
- Wood seized
- More than 50 tons of khair wood
- Truck seizure
- 23,350 kg of khair wood intercepted on June 17
- Arrests
- 12 people arrested so far, according to police
- Alleged invoice value
- Rs 120 crore over two years
- Cash seizure
- Rs 81 lakh seized from Manish Agarwal's premises on September 7
- Alleged network structure
- Eight shell firms and more than 10 mule accounts
- Legal provisions
- Charges include organised crime, cheating, forgery and criminal conspiracy under the Bharatiya Nyaya Sanhita and the Indian Forest Act, 1927
Quotes
Prabhat Kumar
Superintendent of Police of Mahasamund district
“So far, through multiple raids across Chhattisgarh, Haryana, Odisha, Himachal and Madhya Pradesh, we have seized over 50 tons of Khair wood in the last two months. We have arrested 12 people in the case so far.”
indianexpress.com
Sources
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