The State Economic Offences Investigation and Anti-Corruption Bureau (SEOIACB) has arrested Rakesh Kumar Jain, a key alleged conduit accused of converting illegal coal levy collections into cash through a web of fake companies, in a major breakthrough in the ongoing coal levy investigation. Jain was taken into custody in Sections 7, 7A and 12 of the Prevention of Corruption

 

Act, along with Sections 120B, 384 and 420 of the Indian Penal Code (IPC) According to the agency, Jain played a central role in a criminal conspiracy that facilitated large-scale laundering of illegal coal levy proceeds. Investigators have found that he allegedly created and controlled a network of shell firms to route and layer crores of rupees generated from unlawful coal levy collections.

 

These funds were shown as fictitious expenses and bogus business transactions, enabling their withdrawal in cash. The cash, the agency claims, was delivered to the main accused in the coal levy scam, Suryakant Tiwari, on the instructions of other conspirators. SEOIACB officials said the investigation has revealed that more than Rs 50 crore of illegal levy money was converted into cash through this mechanism. In addition to conventional banking routes, a portion of the funds was allegedly sent through hawala channels, for which Jain is said to have received commission payments linked to the volume of transactions handled.

 

The probe has also uncovered Jain’s alleged involvement in facilitating the conversion of scam proceeds for Anwar Dhebar, an accused in the liquor scam case. Investigators suspect that Jain used similar entry-based methods to turn illicit funds into what is locally described as “pakka” money. This aspect of the case is under active examination, and further disclosures are expected during custodial questioning.

 

Officials said Jain had floated more than a dozen companies in his own name and in the name of his brother-in-law. Additional entities were allegedly created in the names of his employees and close associates, all of which were used to route suspect transactions. These firms, investigators believe, existed largely on paper and had no genuine commercial activity.

 

SEOIACB records show that Jain has a prior criminal history and had been absconding for a prolonged period. He is already an accused in multiple cheating cases registered at Kotwali police station in Raipur and at Maudhapara police station. After his arrest on December 11, Jain was produced before the Special Court under the Prevention of Corruption Act in Raipur on December 12. The court granted police remand till December 19, allowing the agency to continue interrogation and evidence collection. SEOIACB officials indicated that further arrests and financial attachments may follow as the investigation progresses.