The Enforcement Directorate (ED) revealed a money laundering network worth Rs 1,500 crore associated with the smuggling of foreign-origin betel nut from Myanmar to India. Following searches in four states, cash amounting to Rs 1.30 crore was seized, and 33 bank accounts were frozen. The operations conducted on July 3 under the Prevention of Money Laundering Act targeted an organized syndicate engaged in cross-border areca nut smuggling and money laundering.
The ED’s investigation, triggered by multiple FIRs in Assam, focused on illegal areca nut smuggling and customs duty evasion. The Directorate of Revenue Intelligence (DRI), Guwahati, played a crucial role by seizing 655.32 metric tonnes of areca nut and related vehicles based on Gauhati High Court directives. The syndicate was found to procure smuggled areca nut via the Champhai-Zokhawthar route along the India-Myanmar border, using forged GST invoices and fabricated transport documents to move the contraband across states.
Official data revealed that Champhai district, the claimed origin of most consignments, had no domestic areca nut production during the relevant period, indicating the foreign source of the smuggled goods. The ED alleged that the smuggling proceeds were funneled through hawala channels and various bank accounts, including transit accounts, before being returned to Myanmar-based smugglers. The searches led to the seizure of diaries, business records, electronic devices, and property documents, uncovering investments in villas and commercial properties in multiple locations.
The investigation remains ongoing as officials continue to delve into the intricate network of illicit activities.
