ED Uncovers Rs 1,500 Crore Areca Nut Smuggling Racket Across Four States

The Directorate of Enforcement (ED), Guwahati Zonal Office, conducted search operations at 20 locations across Assam, Mizoram, West Bengal and Uttar Pradesh on July 3 under the Prevention of Money Laundering Act (PMLA), 2002.

The action formed part of an investigation into an organised syndicate accused of smuggling foreign-origin areca nut across the Indo-Myanmar border and laundering the illicit proceeds.

The case stems from multiple FIRs registered in Assam under the Indian Penal Code and the Customs Act, 1962.

The investigation also drew on DRI findings. The agency earlier seized 655.32 metric tonnes of areca nut and transport vehicles under Gauhati High Court directions.

The ED identified suppliers in Mizoram’s Champhai district and facilitators in Assam. It also traced financiers, consignees, invoice providers and logistics operators across West Bengal, Uttar Pradesh, Kolkata and Guwahati.

Investigators found that smugglers transported areca nut from Myanmar through the Champhai-Zokhawthar route.

Official records showed no areca nut production in Champhai during the relevant period.

Officials alleged that the syndicate used forged GST invoices, shell entities and fabricated transport documents to legitimise illegal consignments.

The group allegedly routed payments through hawala operators in Assam and transit accounts, mainly in Mizoram Rural Bank. It then transferred the funds to smugglers and suppliers in Myanmar.

Financial scrutiny of bank accounts, GST returns and trade records revealed that the syndicate generated proceeds of crime exceeding Rs 1,500 crore.

During the searches, the ED seized incriminating documents, business records, electronic devices, and unexplained cash worth Rs 1.30 crore.

Authorities also froze 33 bank accounts linked to the accused.

Investigators further found that the accused invested the alleged proceeds in villas, high-rise buildings and other real estate across Champhai, Silchar, Guwahati, Nabadwip, Falakata, Kolkata and Varanasi. The investigation remains underway.

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