The Enforcement Directorate is investigating a large-scale liquor smuggling and money laundering operation in Arunachal Pradesh, with raids uncovering a network exploiting tax differentials between states.
Key Points
- The Enforcement Directorate (ED) conducted coordinated searches at nine locations in Arunachal Pradesh related to interstate liquor smuggling.
- The investigation revealed a network exploiting tax differences between states to illegally supply liquor to Assam and other markets.
- The ED uncovered evidence of proxy licences, unexplained cash deposits, and invoice splitting to avoid scrutiny.
- Approximately Rs 40 lakh in unaccounted cash and seals suspected to be from the Excise Department were seized during the raids.
- The investigation stems from FIRs registered by Assam Police regarding the illegal transportation of liquor from Arunachal Pradesh into Assam.
The Enforcement Directorate has carried out coordinated searches at nine locations across Arunachal Pradesh in connection with a suspected large-scale interstate liquor smuggling and money laundering network, officials said on Monday.
ED Investigates Interstate Liquor Smuggling Operation
The action, taken under the Prevention of Money Laundering Act (PMLA), is part of an expanding probe that points to a syndicate exploiting tax differentials among states.
Officials said liquor designated for sale within Arunachal Pradesh was allegedly diverted and supplied illegally to markets in Assam and other states.
The searches, conducted earlier this week, spanned multiple towns such as Itanagar, Naharlagun, Seppa, Ziro, Daporijo, Namsai and Roing, targeting wholesale liquor businesses suspected of being linked to the network.
Details of the Investigation
According to officials, the investigation stems from a series of FIRs registered by Assam Police over the illegal transportation of liquor from Arunachal Pradesh into Assam.
Inputs from the Assam Excise Department further strengthened the case. An Enforcement Case Information Report (ECIR) was registered on October 17, 2024, and later widened through an addendum incorporating 173 additional FIRs.
Earlier searches conducted on February 4 last year, at premises linked to three alleged key operators, believed to be major liquor manufacturers, had revealed indications of a well-coordinated operation.
Modus Operandi and Key Findings
Investigators suspect that the network functioned through a chain of manufacturers, bonded warehouses and wholesalers, while masking real ownership using proxy arrangements such as tribal partnerships and dummy licence holders.
During the latest ED operations, the agency found that several wholesale units were operating under proxy licences issued in the names of local individuals, while actual control remained with the suspected masterminds.
Financial scrutiny revealed that between 51 and 90 per cent of total credits in certain bank accounts comprised unexplained cash deposits.
Investigators also flagged a pattern of invoice splitting, with transactions deliberately kept below Rs 2 lakh to avoid scrutiny. In one instance, more than 200 invoices of identical value of Rs 1,99,554 were generated within a single month at one location.
On-ground staff reportedly confirmed that records, including stock registers and daily cash collections, were being routed to offices associated with the alleged controllers.
Seizures and Further Investigation
The ED said it seized approximately Rs 40 lakh in unaccounted cash during the searches.
In a significant finding, 14 seals, some purportedly belonging to the Excise Department of the Arunachal Pradesh government, were recovered from one of the premises. These are suspected to have been used to create fake transport permits to facilitate the unauthorised movement of liquor.
Further investigation is underway, officials added.
