The Enforcement Directorate (ED) has arrested Vinesh Chandel, Director and Co-founder of I-PAC (Indian Political Action Committee), in connection with a money laundering case linked to an alleged coal smuggling network, days ahead of the West Bengal Assembly elections. He was taken into custody from Delhi on Monday evening, according to officials.
The arrest comes as polling in the state is scheduled to be held in two phases in the coming days.
According to investigating agencies, the case pertains to alleged coal smuggling and illegal financial transactions involving crores of rupees. Agencies have alleged that large-scale fund diversion took place through a network, with money routed to multiple entities through various channels.
The ED has stated that suspicious financial transactions and transfers through hawala networks involving significant sums are under investigation, and that the probe has been ongoing for an extended period.
I-PAC, a political consultancy firm that provides election strategy, campaign management, and public outreach services to various political parties, has also come under the scope of the investigation. Vinesh Chandel is identified as one of the key figures associated with the firm and among its founding members, along with Prashant Kishor, Prateek Jain, and Rishi Raj Singh.
Investigating agencies have alleged that a portion of the funds linked to the case reached entities associated with I-PAC. The company has consistently denied these allegations.
Following the arrest, the ruling Trinamool Congress (TMC) in West Bengal expressed opposition to the action. The party stated that the timing of the arrest, shortly before the elections, raises concerns and described it as politically motivated.
TMC alleged that central agencies are being used to exert pressure on opposition parties, which, according to the party, raises questions about the fairness of the electoral process.
TMC National General Secretary Abhishek Banerjee responded on social media, stating that such actions shortly before elections raise questions about the democratic process. He alleged that central agencies become active during election periods to create political pressure and said that the people of West Bengal would respond politically.
The ED had earlier conducted searches in connection with the case on April 2 at premises linked to Vinesh Chandel and others associated with I-PAC. Searches were also carried out at multiple locations in Bengaluru and Mumbai, including premises linked to senior officials and individuals associated with political communications.
In January, the agency had conducted searches at the I-PAC office in Kolkata and residences of individuals linked to the firm.
The case is reported to involve an alleged money laundering and coal smuggling network amounting to approximately ₹2,742 crore. The Central Bureau of Investigation (CBI) registered a First Information Report in 2020, following which the ED initiated its probe.
Investigating agencies have stated that the network allegedly converted illegal earnings into legitimate funds through multiple channels.
The case has been a point of political contention between the Centre and the West Bengal government. While central agencies have described it as a case involving corruption and illegal financial transactions, TMC has termed the actions as politically motivated.
TMC has stated that such actions ahead of elections may be aimed at affecting the party’s strategic operations.
Certain aspects of the case are under judicial consideration. The ED has reportedly presented submissions in court, including allegations of obstruction by the state administration in the course of the investigation.
The arrest has intensified political activity in the state ahead of the elections. Investigating agencies have maintained that the action is based on legal procedures and evidence, and is not linked to the election schedule.
