ED Seizes Rs 80 Crore Assets from Punjab Company for Environmental Money Laundering Through Groundwater Pollution

Chandigarh:

The Enforcement Directorate has seized assets valued at Rs 79.93 crore from a Punjab-based company as part of a money laundering investigation connected to environmental crimes involving extensive water contamination.

The seized properties include land, buildings, and industrial equipment owned by Malbros International Pvt Ltd. This provisional attachment was executed by the ED's Jalandhar Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002.

The investigation originated from a criminal complaint filed by the Punjab Pollution Control Board, alleging the company violated the Water (Prevention and Control of Pollution) Act, 1974. Malbros International allegedly injected untreated industrial wastewater into deep aquifers through a process known as reverse boring.

According to ED officials, Malbros International, which operates an industrial facility in Mansoorwal village of Zira tehsil in Ferozepur district, deliberately contaminated groundwater to evade proper effluent treatment costs. Investigators determined the company generated "proceeds of crime" by repeatedly and covertly discharging untreated effluents into deep aquifers.

The agency also discovered that wastewater was regularly discharged onto land, into drainage systems, and into a neighboring sugar mill. The ED stated these practices were integrated into the company's routine operations and caused extensive, irreversible environmental damage.

The pollution reportedly resulted in severe groundwater contamination, causing crop destruction, livestock deaths, and serious health issues among residents in surrounding villages. The ED characterized the damage as extensive and irreparable, with long-lasting ecological and public health implications.

Previously, on July 16, 2024, the ED conducted searches at six locations connected to Malbros International and its directors under Section 17 of the PMLA. During these operations, cash totaling Rs 78.15 lakh was confiscated.

The asset seizure represents a significant intensification of enforcement action, highlighting the agency's emphasis on connecting environmental violations with financial crimes under money laundering legislation.