Guwahati: The Enforcement Directorate (ED) has uncovered an alleged Rs 1,500-crore cross-border areca nut smuggling and money laundering racket spanning Assam, Mizoram, West Bengal and Uttar Pradesh, exposing what it described as a well-organised syndicate with links to Myanmar.
The agency carried out searches at 20 locations across the four states on July 3 under the Prevention of Money Laundering Act (PMLA), targeting individuals and firms suspected of facilitating the illegal import of areca nut through the Indo-Myanmar border and laundering the proceeds.
The case is based on multiple FIRs registered in Assam relating to the smuggling of areca nut and evasion of customs duty. It follows an earlier Directorate of Revenue Intelligence (DRI) operation that led to the seizure of 655.32 metric tonnes of areca nut along with vehicles used to transport the contraband.
According to the ED, the syndicate sourced areca nut from Myanmar through the Champhai-Zokhawthar route in Mizoram before moving consignments into Assam and other states. Investigators said the network involved suppliers in Mizoram, transporters and facilitators in Assam, and traders and financiers operating out of West Bengal and Uttar Pradesh.
A key finding of the probe was that Champhai district, identified as the main transit hub, recorded no domestic areca nut production during the relevant period, indicating that the consignments were of foreign origin and had been smuggled across the border.
To legitimise the trade, the syndicate allegedly created fake GST invoices, floated bogus supplier and buyer firms, and used fabricated transport documents. The illicit proceeds were then layered through multiple bank accounts, shell companies and intermediary entities before being routed back to Myanmar-based suppliers through hawala channels, the ED said.
Financial scrutiny of bank transactions, GST returns and international trade records revealed that the syndicate generated and laundered more than Rs 1,500 crore through an elaborate financial network.
During the searches, the ED seized business records, property documents, electronic devices and Rs 1.30 crore in unexplained cash. It also froze 33 bank accounts linked to the alleged syndicate.
The agency further alleged that part of the proceeds of crime had been invested in real estate, including villas and high-rise properties in Champhai, Silchar, Guwahati, Nabadwip, Falakata, Kolkata and Varanasi.
The ED said further investigation into the smuggling network and its financial trail is in progress.