CBI books ASI, MCL officer over coal money racket

Bhubaneswar/Rourkela: CBI has booked an assistant sub-inspector (ASI) posted at its Bhubaneswar anti-corruption branch (ACB) and an officer of Mahanadi Coalfields Ltd (MCL) in Sundargarh district for allegedly running an illegal money collection racket involving coal transporters.

According to the FIR registered on Jan 28, ASI Prashanta Kumar Pallei allegedly operated a criminal nexus with Sarada Prasad Sethy, despatch officer at MCL’s Garjanbahal open cast project in Basundhara area, to illegally collect money from coal transporters and lifters.


While Sethy is accused of abusing his official position to obtain bribes, Pallei allegedly provided protection and other favours to keep the activities running. CBI on Friday raided premises linked to Sethy’s workplace.

CBI sources said Sethy routinely collected payments from transporters by offering illegal benefits, including despatch of excess coal or supplying higher-grade coal while billing it as a lower grade. In return, transporters allegedly made regular payments. The FIR also alleges that Sethy secured and retained his posting with Pallei’s assistance.

As per the case, Pallei allegedly received regular payoffs from Sethy in exchange for shielding him from enforcement action and extending favours such as ensuring a “favourable posting”, intimidating rivals and facilitating allotment of a company quarter. The FIR further alleges that Pallei threatened a senior MCL official to secure Sethy’s posting at Garjanbahal.

Investigators have cited multiple alleged transactions and conversations between the two during June-Sept last year. On June 13, 2025, Pallei allegedly demanded Rs 1 lakh from Sethy and asked that the amount be transferred to his son’s bank account. Days later, he allegedly sought the son’s PAN details and suggested “finding faults” with the Mahalaxmi area general manager to “set things right”, assuring Sethy he would personally resolve the issues, including quarter allotment.

The FIR further claims that on July 16, 2025, Pallei asked Sethy to identify “big contractors” and mentioned the need to arrange a staffer to assist a CBI DSP in Bhubaneswar, with the salary to be borne by a private firm. Acting on this, Sethy allegedly deputed a man on a Rs 25,000 per month arrangement.

On July 17, Rs 1 lakh was credited to Pallei’s SBI account from a coal transporter, with Rs 70,000 transferred the same day to the ASI’s wife, the FIR stated. Pallei is also accused of seeking confidential tender-related information from an MCL official handling guesthouses, including “secret” catering bid details, allegedly warning the officer of consequences for non-compliance.

The FIR further alleges that on Aug 22 last year, while on duty in a trap case, Pallei directed the brother of an accused to contact a particular advocate. In early Sept, after Sethy complained that the GM had reprimanded him during a video conference over allegations of favouring ruling party politicians in coal transport, Pallei allegedly assured him that the GM “cannot remove” him and could be “called to Bhubaneswar”.

The two later met in Rourkela on Sept 12, 2025. CBI has alleged that Pallei had earlier received “protection money” both in cash and through bank transfers to accounts of his family members and other associates.

CBI has registered a case under BNS sections 61 (2) (criminal conspiracy), 318(4) (cheating) and under various sections of the Prevention of Corruption Act.