Mafia Raj (Hindustani: माफ़िया राज, مافیا راج, mafia regime) refers to a criminalised nexus (or "mafia") of government officials, elected politicians, business interests and other entities (such as law-enforcement authorities, non-governmental organisations, trade unions or criminal organisations).
In India (where the term originated) it can refer to cities, states, government departments, public sector businesses or entire sectors of the economy that are subject to these conditions. Due to the ability of these mafias to operate their illegal activities in a sustained fashion, sometimes openly and with the use of violent intimidation, terms like Goonda Raj (rule of the goons), Jungle Raj (law of the jungle) and Anarchy are used to refer to the same phenomenon.
In the Indian and Pakistani media, the mafias are usually mentioned by the name of the economic sector in which they are involved. Terms such as coal mafia, timber mafia (sometimes forest mafia), contractor mafia (sometimes road construction mafia or road contract mafia) and land mafia are commonly used.
The state-owned coal mines of Bihar (now Jharkhand after the division of Bihar state) were among the first areas in India to see the emergence of a sophisticated mafia, beginning with the mining town of Dhanbad. It is alleged that the coal industry's trade union leadership forms the upper echelon of this arrangement and employs caste allegiances to maintain its power. Pilferage and sale of coal on the black market, inflated or fictitious supply expenses, falsified worker contracts and the expropriation and leasing-out of government land have allegedly become routine. A parallel economy has developed with a significant fraction of the local population employed by the mafia in manually transporting the stolen coal for long distances over unpaved roads to illegal mafia warehouses and points of sale.
The coal mafia has had a negative effect on Indian industry, with coal supplies and quality varying erratically. Higher quality coal is sometimes selectively diverted, and missing coal is replaced with stones and boulders in railway cargo wagons. A human corpse has been discovered in a sealed coal wagon.
In June 2012, the Bollywood epic Gangs of Wasseypur was released portraying the coal mafia in the area of Dhanbad. The movie received overwhelming response and was declared a hit. Another Bollywood movie Gunday was also loosely based upon coal mafia.