The Enforcement Directorate has conducted searches at nine locations in Mizoram's border district of Champhai as part of a money laundering investigation linked to an alleged Rs 970-crore cross-border areca nut smuggling racket operating along the India-Myanmar border.
The raids were carried out on June 4 under the Prevention of Money Laundering Act (PMLA) at premises linked to suspected local facilitators of the network, the agency said.
The probe stems from a case registered by the Central Bureau of Investigation on the directions of the Gauhati High Court while hearing a public interest litigation in July 2024.
According to the ED, proceeds of crime amounting to around Rs 970 crore were generated through the alleged smuggling operation between 2013 and 2025.
Investigators alleged that Myanmar-origin dry areca nuts were smuggled into India across the Tiau River through Zokhawthar and Champhai without customs clearance. The consignments were allegedly stored in local warehouses before being transported to Vairengte on the Assam-Mizoram border.
Also read: Attack on ED officials in Kerala: Eight arrested
The agency claimed the operation was financed by traders and financiers based in Silchar, who transferred funds through banking channels to accounts operated by facilitators in Mizoram. Payments to suppliers in Myanmar were allegedly made in Indian currency and converted through money exchangers near the border.
The ED further alleged that fraudulent e-way bills worth Rs 251.19 crore under SGST and Rs 86.25 crore under CGST were generated in Champhai between 2021 and 2024 using forged plantation certificates and fabricated customs documents.
According to investigators, local facilitators earned commissions ranging from Rs 2 to Rs 15 per kilogram for transportation, procurement and related services.
The agency also alleged that front claimants were used to secure the provisional release of seized consignments and that unrelated bills of entry were submitted to portray smuggled areca nuts as legally imported goods.
Analysis of bank accounts linked to the accused allegedly showed that more than Rs 970 crore in proceeds of crime was routed through multiple accounts over a 13-year period.
Further investigation is underway.
Follow us
