The Directorate of Enforcement (ED) has unearthed an alleged INR 1,500 crore money laundering network linked to the smuggling of foreign-origin betel nut (areca nut) from Myanmar into India
GUWAHATI — The Directorate of Enforcement (ED) has unearthed an alleged INR 1,500 crore money laundering network linked to the smuggling of foreign-origin betel nut (areca nut) from Myanmar into India, with searches conducted across four states leading to the seizure of INR 1.30 crore in cash and the freezing of 33 bank accounts, officials said on Monday.
The searches were carried out on July 3 under the Prevention of Money Laundering Act (PMLA) at 20 locations spread across Assam, Mizoram, West Bengal and Uttar Pradesh as part of an investigation into an organised syndicate involved in cross-border smuggling of areca nut and laundering of the illicit proceeds.
According to the ED, the case stems from multiple FIRs registered in Assam under provisions of the Indian Penal Code and the Customs Act relating to illegal areca nut smuggling and customs duty evasion. The agency said the probe also relied on findings of the Directorate of Revenue Intelligence (DRI), Guwahati, which had earlier seized 655.32 metric tonnes of areca nut along with vehicles used for transportation following directions of the Gauhati High Court.
Investigators found that the syndicate sourced smuggled areca nut through the Champhai-Zokhawthar route along the India-Myanmar border, then routed it across several states using forged GST invoices, fake supplier and buyer firms, and fabricated transport documents.
The ED said official production data from government agencies showed that Champhai district, from which a majority of the consignments were claimed to have originated, had recorded no domestic areca nut production during the relevant period, indicating that the consignments were of foreign origin.
The agency alleged that proceeds from the smuggling operation were layered through hawala channels and multiple bank accounts, including transit accounts, before being routed back to smugglers in Myanmar.
During the searches, investigators seized diaries, business records, electronic devices, property documents and title deeds. The ED also found that alleged proceeds of crime had been invested in villas and commercial properties in Champhai, Silchar, Guwahati, Nabadwip, Falakata, Kolkata and Varanasi.
Further investigation is underway, the officials added.