Searches were conducted by the Enforcement Directorate also known as ED in Punjab, Delhi, and MP at sites connected to Malbros International, a liquor company that is charged with contaminating the soil and groundwater in Punjab’s Ferozepur area.
On Tuesday, the Enforcement Directorate (ED) conducted a thorough search operation at seven locations in Punjab, Delhi, and Madhya Pradesh connected to Malbros International Pvt Ltd, a company that manufactures liquor and is owned by Deep Malhotra, a former Shiromani Akali Dal (SAD) MLA, his son Gautam, and their family. The searches were conducted as part of an investigation into money laundering connected to the company’s environmental infractions.
Malbros International was the target of a criminal case brought by the Punjab Pollution Control Board (PPCB) for violating the Water (Prevention and Control of Pollution) Act of 1974. The ED becomes involved when there are violations of this Act since they are categorized as scheduled offenses under the Prevention of Money Laundering Act (PMLA), 2002.
Malbros International is part of the Oasis Group of Companies.
According to ED sources, Malbros International’s factory at Zira tehsil in Ferozepur district is responsible for serious environmental harm, including contaminated soil and groundwater. Within a 4-kilometer radius of the factory, the corporation is accused of inappropriately disposing of industrial effluents, which significantly contaminated the water supply.
When the Zira facility was investigated by the Central Ground Water Board (CGWB) and Central Pollution Control Board (CPCB) last year in response to concerns, the matter became well known. As stated in a report submitted to the National Green Tribunal (NGT), the examination revealed numerous instances of environmental standards being broken.
According to the CPCB, water from 29 borewells close to the factory was deemed unsafe for human consumption. Several of the samples had unfavorable smells, were discolored, and contained dangerously high concentrations of harmful substances like lead, cyanide, and arsenic. The study also showed that towns up to 15 kilometers away from the factory were severely impacted by groundwater contamination. At several locations close to the aforementioned structure, it was discovered that the concentrations of chromium, iron, manganese, nickel, and lead were, respectively, six to seven times, 650 to 800 times, 32 to 37 times, 10 to 11 times, and eight to 13 times higher than the allowable limits.
In response to these findings and mounting local protests, Punjab Chief Minister Bhagwant Mann announced plans to close the factory in January 2023. The PPCB had also refused to renew the factory’s operational consent.
Malbros International has contested the PPCB’s order in the Punjab and Haryana High Court, asserting compliance with environmental regulations.
The CPCB and CGWB inspections revealed further violations, including unauthorised borewells and high levels of heavy metals in the factory’s groundwater. The CPCB had recommended further investigations to identify and remediate contaminated areas, and the PPCB has been urged to take corrective actions to address the environmental damage.