Guwahati: A series of searches was carried out by the Enforcement Directorate (ED) at nine sites in Arunachal Pradesh as investigators look into a suspected inter-state liquor smuggling operation linked to financial irregularities, officials said on Monday, April 27.
The case, being investigated under the Prevention of Money Laundering Act, is connected to a wider network allegedly taking advantage of varying tax structures between states.
Officials said liquor legally meant for Arunachal Pradesh markets was being rerouted and sold illegally in Assam and nearby regions.
Search operations were carried out in several towns, including Itanagar, Naharlagun, Seppa, Ziro, Daporijo, Namsai, and Roing. Wholesale liquor outlets believed to be connected with the suspected network were the main focus of the action.
Authorities said the investigation began after multiple FIRs were filed by Assam Police regarding illegal movement of liquor from Arunachal Pradesh into Assam. Information shared by the Assam Excise Department also helped strengthen the case.
An Enforcement Case Information Report was registered on October 17, 2024. Later, the scope of the investigation was widened to include 173 more FIRs, suggesting a large and organized operation.
Earlier in the year, searches conducted on February 4 at premises linked to three suspected key figures, believed to be major alcohol producers, had already pointed towards the existence of an organized system.
Authorities suspect the network functioned through multiple layers, starting from manufacturers and extending through bonded storage facilities and wholesale distributors, with ownership allegedly hidden through intermediaries.
Officials also believe that the group used arrangements such as tribal-linked associations and fake licence holders to escape regulatory oversight and avoid detection.
A detailed financial examination conducted during the probe pointed to suspicious movement of money through several bank accounts. In some of these accounts, a large portion of the incoming funds, between 51 percent and 90 percent, was linked to cash deposits that could not be clearly explained.
Investigators also observed a deliberate method of breaking down sales bills into smaller amounts to stay below the Rs 2 lakh threshold and avoid regulatory attention. One instance showed more than 200 invoices being issued in a single month, all carrying the same value of Rs 1,99,554 at a single location.
The inquiry is still in progress, and officials have stated that additional steps may be taken depending on what further evidence reveals.
Officials said the investigation is still ongoing, and any further action will be decided based on the findings of the evidence review.