AIZAWL, June 4: The Enforcement Directorate (ED) on Thursday carried out searches at nine locations in Mizoram's Champhai district as part of an ongoing money laundering investigation into an alleged multi-crore cross-border areca nut smuggling racket operating along the India-Myanmar border.
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The searches, conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, targeted residences and premises linked to individuals suspected of facilitating the illegal movement of Myanmar-origin areca nuts, commonly known as Burmese supari, into India.
According to the ED, the investigation has uncovered what it describes as a highly organised transnational syndicate involved in the large-scale smuggling of areca nuts from Myanmar through porous stretches of the border in eastern Mizoram. The network is believed to have operated across multiple states and generated illicit proceeds worth hundreds of crores of rupees.
Officials said the raids were conducted at locations associated with key facilitators of the alleged racket in and around Champhai, a strategically important border town that serves as a major trade gateway between India and Myanmar. The operation is aimed at tracing the financial trail of funds generated through the illegal trade and identifying individuals involved in laundering the proceeds.
Investigators allege that smuggled consignments were illegally brought into India through the Tiau River and other vulnerable border points near Zokhawthar and Champhai without obtaining mandatory customs clearance. Once inside Indian territory, the areca nuts were allegedly collected and stored in warehouses operated by local facilitators before being distributed to markets outside the state.
The ED claims that members of the syndicate used forged documents, fabricated e-way bills and fake billing mechanisms to project the smuggled areca nuts as locally sourced agricultural produce. By disguising the true origin of the consignments, the network allegedly enabled the transportation of large quantities of contraband to destinations across the country while evading customs duties and regulatory scrutiny.
According to investigators, the consignments were subsequently transported through a network of transporters towards Vairengte near the Assam-Mizoram border and then onward to other states. The agency alleged that dedicated escorts were often deployed to ensure the smooth movement of the goods.
The money laundering probe stems from a First Information Report (FIR) registered by the Anti-Corruption Branch of the Central Bureau of Investigation (CBI) in Imphal on August 7, 2024. The FIR was filed following directions issued by the Gauhati High Court while hearing a Public Interest Litigation (PIL) that raised concerns over large-scale smuggling of Myanmar-origin areca nuts through Champhai.
As outlined in the PIL, authorities allegedly issued fraudulent e-way bills worth approximately ₹251.19 crore between 2021 and 2024 through the State GST Department in Mizoram. In addition, e-way bills valued at ₹86.25 crore were reportedly generated through the Central GST Department during the same period.
Investigators suspect that these documents were used to legitimise the movement of smuggled areca nuts outside Mizoram under the guise of lawful local trade, despite local areca nut growers not being registered under the Goods and Services Tax (GST) framework.
The ED further alleged that traders and financiers based primarily in Assam, particularly in Silchar, financed the procurement and transportation of the consignments. Large sums of money were reportedly transferred to bank accounts of local facilitators in Mizoram, who allegedly received commissions ranging from ₹2 to ₹15 per kilogram of areca nuts handled.
Another significant aspect of the investigation involves allegations that local individuals were used as proxy claimants whenever consignments were seized by the Directorate of Revenue Intelligence (DRI) or Customs authorities. These individuals allegedly submitted fabricated import-related documents and claimed ownership of the goods in an attempt to secure their release.
Based on the predicate offences of cheating, forgery and criminal conspiracy - offences that fall under the schedule of the PMLA - the ED registered an Enforcement Case Information Report (ECIR) and initiated a detailed financial investigation into the movement of funds linked to the alleged smuggling network.
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Officials said documents, electronic records and other materials recovered during Thursday's searches will be examined as part of the ongoing investigation. The agency has not yet disclosed details of any seizures or arrests made during the operation.
The latest action by the ED underscores growing concerns over illegal cross-border trade along the India-Myanmar frontier and its potential links to organised financial crime. Authorities indicated that further searches and enforcement measures may follow as investigators continue to unravel the extent of the alleged smuggling and money laundering network.
