Guwahati, July 6: The Enforcement Directorate (ED) has unearthed an alleged ₹1,500-crore cross-border areca nut (betel nut) smuggling and money laundering syndicate operating across Assam, Mizoram, West Bengal and Uttar Pradesh, with links extending to Myanmar.
Acting under the Prevention of Money Laundering Act (PMLA), the ED conducted searches at 20 premises on July 3 following an investigation into the illegal import of areca nut through the Indo-Myanmar border and the laundering of the proceeds generated from the trade.
The probe stems from multiple FIRs registered in Assam over the illegal smuggling of areca nut and evasion of customs duty. It follows an earlier Directorate of Revenue Intelligence (DRI) operation in which 655.32 metric tonnes of areca nut and vehicles used for transportation were seized.
According to the ED, the syndicate operated through a network of suppliers based mainly in Mizoram’s Champhai district, financiers and transporters in Assam, and traders spread across West Bengal and Uttar Pradesh. The agency has named several alleged facilitators and business entities believed to be part of the network.
Investigators found that although Champhai district served as the principal transit hub, official records showed no domestic production of areca nut there during the relevant period, strengthening suspicions that the consignments were smuggled from Myanmar through the Zokhawthar border.
The ED alleged that the syndicate used forged GST invoices, bogus supplier firms and fabricated transport documents to legitimise the illegal trade. The proceeds were allegedly routed through buyers in West Bengal and Uttar Pradesh, layered through multiple bank accounts and shell entities before being channelled back to Myanmar-based suppliers via hawala networks.
Financial investigations involving bank accounts, GST returns and international trade data indicate that the syndicate generated and laundered more than ₹1,500 crore through a complex web of current accounts, front companies and intermediary entities.
During the raids, the ED seized incriminating documents, property papers, business records, mobile phones, laptops, hard drives and ₹1.30 crore in unexplained cash. The agency also froze 33 bank accounts allegedly linked to the syndicate.
The investigation further revealed that a portion of the alleged proceeds of crime was invested in real estate, including villas and high-rise buildings in Champhai, Silchar, Guwahati, Nabadwip, Falakata, Kolkata and Varanasi.
The ED said further investigation is underway.
