The Enforcement Directorate (ED) conducted search operations at nine premises linked to wholesale liquor businesses in Arunachal Pradesh. The raids were part of an investigation into an alleged large-scale illegal liquor smuggling network in the region under the Prevention of Money Laundering Act (PMLA), 2002. The ED’s Guwahati Zonal Office carried out the searches in various locations including Itanagar, Nahagarlagun, Seppa, Ziro, Daporijo, Namsai, and Roing.
The ED’s probe was initiated based on multiple FIRs filed by the Assam Police regarding illegal transportation and smuggling of liquor from Arunachal Pradesh into Assam. The agency’s investigation, which began on October 17, 2024, has since expanded to include 173 additional FIRs. Previous search actions in February 4, 2025, at the premises of three key liquor manufacturers in Arunachal Pradesh revealed a network exploiting inter-state excise-duty differentials through various means.
The PMLA investigation uncovered that the three main figures control over 25 entities involved in the illegal liquor trade. The searches exposed that these entities operated under benami/dummy licenses held by local residents, with the actual control lying with the kingpins. Financial irregularities were discovered, including unexplained cash deposits ranging from 51% to 90% in wholesale bank accounts, along with systematic invoice-splitting below Rs 2 lakh. The investigation also led to the seizure of approximately Rs 40 lakh in unexplained cash and other incriminating evidence.
