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New Delhi: In a first-of-its-kind operation in the border town of Champhai in Mizoram, the Enforcement Directorate (ED) on Thursday carried out extensive searches under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, unearthing a sprawling narco-hawala and drug precursor supply network with links stretching from the Northeast to Gujarat and Kolkata.
Simultaneous raids were conducted at multiple locations across Aizawl and Champhai in Mizoram, Sribhumi (Karimganj) in Assam, and Ahmedabad in Gujarat, marking one of the most coordinated crackdowns on cross-border drug financing in the region.
Case Triggered by Heroin Seizure Worth Rs 1.41 Crore
The ED initiated its money laundering probe based on an FIR registered by the Mizoram Police under Sections 21(C), 25 and 29 of the NDPS Act, 1985, following the seizure of 4.724 kg of heroin valued at over Rs 1.41 crore. Six individuals were arrested in connection with the narcotics seizure, triggering deeper financial scrutiny by the central agency.
Gujarat to Mizoram Supply Chain for Drug Precursors Busted
Financial analysis of the arrested accused revealed strong linkages between Mizoram-based firms and Gujarat-based companies. The investigation found that firms in Gujarat supplied Pseudoephedrine tablets—classified as Schedule A, B and C substances under the NDPS (Regulation of Controlled Substances) Order, 2013—along with Caffeine Anhydrous, a key precursor used in the manufacture of Methamphetamine tablets, to entities based in Mizoram.
These Mizoram-based firms were found to be closely associated with drug smugglers and hawala operators operating out of Champhai, a town notorious for its vulnerability due to the porous Indo-Myanmar border.
Kolkata Shell Firms and Myanmar Drug Labs in the Chain
The ED further uncovered that the Mizoram-based firms also had financial links with Kolkata-based shell companies that had initially procured the consignment of Caffeine Anhydrous.
Investigators confirmed that the drug precursors are transported from India into Myanmar through the porous international borders, where illicit drug laboratories manufacture Methamphetamine. The finished narcotic products are then smuggled back into India primarily through Mizoram, making the state a critical transit hub in the international drug trade.
Rs 52.8 Crore Narco-Hawala Transactions Under Scanner
The money trail exposed during the investigation revealed massive credits worth Rs 52.8 crore in the bank accounts of narco-hawala operators, including large cash deposits across Assam, Mizoram, Nagaland, West Bengal, Tripura and Delhi. These financial transactions are now under detailed forensic examination.
ED officials said the recording of statements of several narco-hawala operators is currently underway, and further arrests are likely as the probe advances.
Rs 35 Lakh Cash, Digital Evidence Seized
During the PMLA searches, the agency also seized Rs 35 lakh in unaccounted cash, along with a large volume of digital devices and electronic evidence, which are now being subjected to detailed forensic analysis. Officials said the operation has exposed a well-organised and multi-state network involved in drug trafficking, precursor chemical supply and hawala-based money laundering, with clear cross-border linkages to Myanmar.
