The Crossbill News Desk
A political and legal storm erupted in West Bengal after the Enforcement Directorate carried out searches at the Kolkata office of political consultancy firm I-PAC and the residence of its director Pratik Jain in connection with a coal smuggling and money-laundering probe, triggering sharp reactions from the Trinamool Congress leadership and court intervention.
In a statement issued on Friday (January 9), I-PAC said the action “raises serious concerns and sets an unsettling precedent” and described the day of the raids as “a difficult and unfortunate day for a professional organisation like I-PAC”.
Without going into the specifics of the investigation, the firm said it was cooperating with authorities and would continue its work “unfazed and unperturbed”.
The searches on Thursday led to dramatic scenes in Kolkata as chief minister Mamata Banerjee visited both I-PAC’s office and Jain’s home. She was seen emerging from the latter carrying a green folder with documents inside, while police personnel were also observed taking away several files from the consultancy’s office and loading them into a car.
Banerjee later alleged that ED personnel and Union home minister Amit Shah were “stealing” and “taking away” her party’s internal documents, a charge denied by the agency, which said its actions were not politically motivated or linked to any election.
I-PAC said it has worked “in a professional advisory capacity” with political parties across ideological lines and that it neither contests elections nor holds political office.
Reiterating its position, the firm said: “We believe this raises serious concerns and sets an unsettling precedent. Regardless, we have extended full cooperation and will continue to do so as required, engaging with the process in complete accordance and respect for the law.” It added that it has “always upheld the highest standards of professional integrity” and is committed to “continuing our work unfazed and unperturbed” despite the searches.
The ED, however, said in a statement issued on Thursday that its investigation into a coal smuggling case registered by the CBI in 2020 had revealed that a hawala operator involved in layering the proceeds of crime had “facilitated transactions of tens of crores of rupees” to I-PAC.
According to the agency, the searches were being conducted “in a peaceful and professional manner” until Banerjee arrived with police officials, who took away “key evidences” including physical documents and electronic devices from Jain’s home and I-PAC’s office, thereby obstructing the probe.
“It is clarified that the search is evidence based and is not targeted at any political establishment. No party office has been searched. The search is not linked to any elections, and is part of regular crackdown on money laundering. The search is conducted strictly in accordance with established legal safeguards [sic],” the ED said.
The confrontation has now moved to the Calcutta high court, with both the ED and the TMC seeking judicial intervention.
The agency has asked for a probe against Banerjee for allegedly obstructing its investigation and for the return of materials she took, while the TMC has sought directions to restrain the directorate from ‘leaking’ information related to it, Bar and Bench reported.
During a hearing on Friday, Justice Suvra Ghosh complained of disruption caused by a large number of advocates and others in her courtroom and adjourned the matter to January 14.
Political tensions spilled over on Friday as well, when eight TMC MPs protesting outside Shah’s office in Delhi were detained by police.
In Kolkata, Banerjee led a protest march and filed two complaints against the ED’s searches at Jain’s home and I-PAC’s office, leading the city police to register FIRs, PTI reported.
The first case reportedly invokes provisions of the Bharatiya Nyaya Sanhita relating to criminal intimidation, theft and criminal trespass, along with Section 66 of the IT Act, while the second case is “similar” to the first, police sources said.
Jain, like his firm, has had close links with the West Bengal government and has met Banerjee at the state secretariat on several occasions. I-PAC has been known to act as a bridge between the ruling party and the state administration, especially ahead of elections, in matters related to the implementation of welfare schemes.
The consultancy also has a high-profile legacy through its former chief Prashant Kishor, who left the firm in 2021 and now heads the Jan Suraaj Party in Bihar. Under his leadership, I-PAC had built a formidable reputation in political strategy.
The controversy has once again drawn attention to the expanded powers of the ED under amendments to the Prevention of Money Laundering Act during the Narendra Modi government’s tenure, which critics argue have enabled the agency to be used against political opponents.
The Supreme Court’s 2022 ruling upholding those amendments was highly controversial and is currently under review by a three-judge bench. Last year, the court also noted the agency’s low conviction rate, including in cases involving politicians, compared to the number of cases it has registered.
In a statement issued on Friday (January 9), I-PAC said the action “raises serious concerns and sets an unsettling precedent” and described the day of the raids as “a difficult and unfortunate day for a professional organisation like I-PAC”.
Without going into the specifics of the investigation, the firm said it was cooperating with authorities and would continue its work “unfazed and unperturbed”.
The searches on Thursday led to dramatic scenes in Kolkata as chief minister Mamata Banerjee visited both I-PAC’s office and Jain’s home. She was seen emerging from the latter carrying a green folder with documents inside, while police personnel were also observed taking away several files from the consultancy’s office and loading them into a car.
Banerjee later alleged that ED personnel and Union home minister Amit Shah were “stealing” and “taking away” her party’s internal documents, a charge denied by the agency, which said its actions were not politically motivated or linked to any election.
I-PAC said it has worked “in a professional advisory capacity” with political parties across ideological lines and that it neither contests elections nor holds political office.
Reiterating its position, the firm said: “We believe this raises serious concerns and sets an unsettling precedent. Regardless, we have extended full cooperation and will continue to do so as required, engaging with the process in complete accordance and respect for the law.” It added that it has “always upheld the highest standards of professional integrity” and is committed to “continuing our work unfazed and unperturbed” despite the searches.
The ED, however, said in a statement issued on Thursday that its investigation into a coal smuggling case registered by the CBI in 2020 had revealed that a hawala operator involved in layering the proceeds of crime had “facilitated transactions of tens of crores of rupees” to I-PAC.
According to the agency, the searches were being conducted “in a peaceful and professional manner” until Banerjee arrived with police officials, who took away “key evidences” including physical documents and electronic devices from Jain’s home and I-PAC’s office, thereby obstructing the probe.
“It is clarified that the search is evidence based and is not targeted at any political establishment. No party office has been searched. The search is not linked to any elections, and is part of regular crackdown on money laundering. The search is conducted strictly in accordance with established legal safeguards [sic],” the ED said.
The confrontation has now moved to the Calcutta high court, with both the ED and the TMC seeking judicial intervention.
The agency has asked for a probe against Banerjee for allegedly obstructing its investigation and for the return of materials she took, while the TMC has sought directions to restrain the directorate from ‘leaking’ information related to it, Bar and Bench reported.
During a hearing on Friday, Justice Suvra Ghosh complained of disruption caused by a large number of advocates and others in her courtroom and adjourned the matter to January 14.
Political tensions spilled over on Friday as well, when eight TMC MPs protesting outside Shah’s office in Delhi were detained by police.
In Kolkata, Banerjee led a protest march and filed two complaints against the ED’s searches at Jain’s home and I-PAC’s office, leading the city police to register FIRs, PTI reported.
The first case reportedly invokes provisions of the Bharatiya Nyaya Sanhita relating to criminal intimidation, theft and criminal trespass, along with Section 66 of the IT Act, while the second case is “similar” to the first, police sources said.
Jain, like his firm, has had close links with the West Bengal government and has met Banerjee at the state secretariat on several occasions. I-PAC has been known to act as a bridge between the ruling party and the state administration, especially ahead of elections, in matters related to the implementation of welfare schemes.
The consultancy also has a high-profile legacy through its former chief Prashant Kishor, who left the firm in 2021 and now heads the Jan Suraaj Party in Bihar. Under his leadership, I-PAC had built a formidable reputation in political strategy.
The controversy has once again drawn attention to the expanded powers of the ED under amendments to the Prevention of Money Laundering Act during the Narendra Modi government’s tenure, which critics argue have enabled the agency to be used against political opponents.
The Supreme Court’s 2022 ruling upholding those amendments was highly controversial and is currently under review by a three-judge bench. Last year, the court also noted the agency’s low conviction rate, including in cases involving politicians, compared to the number of cases it has registered.
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