TN sand mining business comes under scanner 

ED is probing allegations that a huge quantity of sand was sold offline and fake bills were issued to sand lorry owners in Tamil Nadu, and this caused a loss of GST revenue to the Central and State governments and the money thus earned was laundered

Even as the Enforcement Directorate continued searches at several locations for the second day on Wednesday to probe charges of money-laundering in Tamil Nadu’s sand mining business, the sand lorry owners’ association has flagged serious irregularities in the sale of sand at the State-owned depots.

Sources said ED teams were examining officials and private persons linked to the sand mining business and scrutinising records seized during Tuesday’s searches at over 40 locations in several districts, especially the sand sales depots managed by the Water Resources Department.

The ED is probing allegations that a huge quantity of sand was sold offline and fake bills were issued to sand lorry owners, and this caused a loss of GST revenue to the Central and State governments and the money thus earned was laundered, the sources said.

The Tamil Nadu Sand Lorries Owners’ Protection Association has flagged serious irregularities in the sale of sand at the State-owned depots.

Its president K. Rajasekar said private persons were managing the depots and selling sand illegally offline at exorbitant rates. While the State government had fixed ₹1,000 per unit of river sand, unauthorised persons handling the yards were forcing lorry operators to buy a minimum of 3 units of sand for 6-wheel lorries and 5 units for 10-wheel lorries at a cost of ₹5,300 and ₹7,950 respectively.

“Private agents use hand-held machines to issue bills that have QR Code, GST number and signatures that are all fake... The entire money goes to private parties. The question of GST payment to government accounts does not arise as the entire sale in offline mode is illegal,” Mr. Rajasekar told The Hindu on Wednesday.

He said that on an average, 500 sand lorry operators purchase sand at 15 depots across the State. There would be no record of sales, though the government had mandated CCTV camras be installed and sales records be maintained.