Commercial Coal Mining in India remained in the private hands for almost two centuries. So much so that the owners of the coal fields virtually controlled the lives of the people living off it.
Post independence, unscientific mining practices and poor working conditions of labour in most of the private coal mines became matters of concern for the Indian Government. On account of these reasons, on May 1, 1973 the Central Government took over all the private coal mines under Coal Mines (Nationalization) Act, 1973.
Not prepared to let go of the control and the power wielded for centuries over Koylaanchal (the coal field region), the ex-owners discovered other means to exercise it. And thus comes into existence the worst mafia ever known in Indian history.