Enforcement Directorate probes alleged drug-money laundering across Northeast, citing Nagaland among sources of cash deposits
DIMAPUR — The Enforcement Directorate (ED) has frozen 1,424 bank accounts and provisionally attached a commercial building worth INR 17.82 crore in a money-laundering probe into drug trafficking between Myanmar and the Northeast. Nagaland is among the places cited as a source of cash deposited into accounts linked to the alleged network.
In a statement issued on Sunday, the ED informed that six people had been arrested following coordinated searches in Aizawl, Champhai and Lawngtlai in Mizoram, and Churachandpur in Manipur on October 23. The operation was conducted by the agency’s Aizawl and Imphal sub-zonal offices in coordination with the Narcotics Control Bureau and Mizoram Police.
The investigation covers three cases involving the trafficking of heroin, brown sugar and methamphetamine tablets from Myanmar and the alleged laundering of drug proceeds through hawala channels.
According to the ED, accounts linked to currency exchangers in Champhai recorded credits of about INR 268.80 crore, including INR 125 crore in cash deposits from Assam, Nagaland, West Bengal, Tripura and Delhi. The agency did not specify the amount attributable to Nagaland.
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The ED alleged that the network collected money from drug sales across several states and routed it through accounts in Manipur and Mizoram before settling payments with suppliers in Myanmar.
In one part of the alleged operation, a money-transfer counter in Churachandpur handled 2,947 transfers worth INR 175.03 crore between 2024 and June 2026. The agency said cash collected from drug sales was deposited through mini-ATM and customer service point counters before being transferred to accounts held by traders, pharmacies and individuals in Mizoram.
Some account holders allegedly rented out their bank accounts for commissions, allowing funds to pass through banking channels without corresponding commercial transactions. The money was subsequently routed to unlicensed rupee-kyat exchangers in Champhai for settlement with suppliers across the Myanmar border, the ED stated.
The agency also alleged that precursor chemicals were moved from India to Myanmar for use in producing methamphetamine tablets. In the case involving M/s Krishiv Enterprises, investigators found that about 32 tonnes of caffeine anhydrous had been dispatched in 15 consignments between March and November 2024, along with 10 tonnes of aluminium chloride anhydrous, to businesses in Mizoram.
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According to the ED, the finished drugs entered Mizoram through the Champhai-Zokhawthar corridor before being transported towards other parts of the Northeast and beyond.
The property attached in the latest operation is Hotel JTS, a five-storey commercial building on 571.11 square metres of land in Champhai, valued at INR 17.82 crore. It stands in the name of Lalliansanga, the husband of an alleged hawala operator.
With INR 8.19 crore secured earlier through bank accounts linked to the alleged activities, the total assets secured in the cases now exceed INR 26 crore, the ED added.
Six people were arrested — three in Mizoram and three in Manipur. The agency is also processing applications to formally arrest four more accused who are already in judicial custody in narcotics cases.
The investigation is ongoing, with the ED examining the role of other account holders, money-transfer operators and bank officials and seeking to trace further proceeds of crime.