The Bihar Illegal Sand Mining Scam
A Rajasthan-based company allegedly excavated ₹131 crore worth of river sand from Bihar's Banka district over seven years without paying royalties — a network the ED traced from Patna to Delhi and Jaipur using satellite imaging.
The Promise
“Riverbed sand mining in Bihar will occur only under valid state mining licences, with royalties paid on all extraction, protecting river ecosystems and state revenue alike.”
— Bihar mining and geology department regulatory framework, State regulator of riverbed sand mining licences and royalty collection · 1 April 2015
The ED's investigation centres on Mahadev Enclave Private Limited, a company controlled by Ashok Chandak and his son Raghav Chandak of Sriganganagar, Rajasthan, alleged to have illegally mined sand from rivers in Banka district over several financial years.
The Standard
Sand mining conducted strictly within licensed limits, with royalties paid to the state exchequer on all extracted volumes, and no unlicensed commercial exploitation of riverbeds.
Bihar Minor Mineral Concession Rules and state mining royalty regulations.
In force from 1 April 2015
The Reality
The ED alleges that Mahadev Enclave Private Limited illegally extracted sand from rivers in Banka district, Bihar, between financial years 2015-16 and 2022-23, with the value of illegally mined sand estimated at over ₹131 crore, causing losses to the state exchequer through unpaid royalties. The agency's case draws on a geospatial analysis commissioned from IIT Patna in October 2024, which found evidence of large-scale illegal excavation. On 17 July 2026, the ED conducted searches at eight locations across Banka and Patna in Bihar, Delhi-NCR, and Jaipur and Sri Ganganagar in Rajasthan under the Prevention of Money Laundering Act, seizing ₹1.53 crore in cash. The ED has also formally flagged the ₹131 crore scam to the Bihar government and sought a fresh FIR.
As of 17 July 2026
The Gap
Bars share a single zero-based scale. No axis truncation is used to exaggerate or minimize the gap between the two figures.
Money
₹131 crore is the ED's estimate of illegally mined sand value over eight years; ₹1.53 crore in cash was seized in the July 2026 raids.
Timeline
- StatusAlleged illegal mining begins
Mahadev Enclave Private Limited allegedly begins large-scale unlicensed sand extraction in Banka district.
- StatusIIT Patna geospatial analysis commissioned
The ED's Patna office requests IIT Patna to analyse sand ghats in Banka district, later finding evidence of large-scale illegal excavation.
- MilestoneED raids eight locations
Simultaneous searches are conducted across Bihar, Delhi-NCR, and Rajasthan; ₹1.53 crore in cash is seized.
- StatusED seeks fresh FIR from Bihar government
The agency formally flags the ₹131 crore scam to state authorities and requests a fresh FIR be registered.
Legal Status
This is a stub entry. The ED has conducted raids and flagged the case to the Bihar government seeking a fresh FIR; this investigation has not confirmed any arrests, chargesheet, or trial outcome.
Named in the ED's investigation; no arrest or chargesheet confirmed as of this entry.
Named in the ED's investigation; no arrest or chargesheet confirmed as of this entry.
Verdict
Preliminary verdict, pending fuller research: the ED's use of satellite/geospatial analysis to quantify illegal riverbed mining is a notable investigative approach, but the case remains at the raid-and-referral stage, with no criminal case yet formally registered by Bihar authorities as of the most recent reporting reviewed.
This entry is based on a handful of independent reports of the July 2026 ED raids and referral; it has not been possible to confirm whether Bihar authorities have since registered the fresh FIR the ED sought.
What remains incomplete
- This is a stub entry; whether the Bihar government has registered the fresh FIR the ED requested has not been confirmed.
- Whether any arrests have followed the July 2026 raids has not been tracked.
- A separate, larger reported figure of a ₹2,407 crore illegal sand mining network across Hyderabad, Jaipur, and Coimbatore may or may not be linked to this same company; this has not been reconciled here.
Sources
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