ED searches 16 locations over alleged smuggling of foreign-origin betel nut via Indo-Myanmar border

The Enforcement Directorate (ED) on Monday carried out searches at 16 locations across Assam and West Bengal in a probe into the alleged smuggling of foreign-origin areca nut (betel nut) into India through the Indo-Myanmar border. The agency said it seized about ₹95 lakh in unaccounted cash and froze fixed deposits worth nearly ₹85 lakh during the operation on October 5, 2026.

Raids across Assam and West Bengal

The searches were conducted in Guwahati (Assam), and in Siliguri, Bagdogra, Phansidewa and Cooch Behar (West Bengal). According to the ED, the premises covered were linked to DNG Biotech Private Limited, Jai Karni Tradings Private Limited, Purvottar Agro Private Limited, N.R. Associates, and connected individuals.

Probe based on multiple FIRs

The ED action stems from 11 First Information Reports (FIRs) registered by the police in Assam and West Bengal. These cases allege a network involved in the smuggling, transportation and sale of areca nut of Indonesian, Thai and Burmese origin. The consignments were allegedly brought into Mizoram through Myanmar and moved onward to West Bengal, Bihar, Uttar Pradesh, Maharashtra and other States using forged Goods and Services Tax (GST) invoices, e-way bills and transport documents.

Alleged cross-border route and “well-organised” network

Describing the operation as a “well-organised” racket, the ED said dried areca nut consignments were brought overland to the Indo-Myanmar border opposite Champhai in Mizoram and ferried across the Tiau river at Zokhawthar in small lots, bypassing the Land Customs Station. Agents on the Myanmar side allegedly sold the consignments to front firms on the Indian side, the agency added.

Front firms and controllers named by the agency

The firms allegedly used for the smuggling were proprietorship concerns registered in the names of local residents of Champhai. Their GST registrations and bank accounts were allegedly set up, funded and operated by controllers based in Silchar, Assam, who retained cheque books and banking credentials. The ED noted that Champhai has no recorded production of areca nut and, until recently, Mizoram had no betel nut drying or processing units.

Layered documentation and shell entities

According to the agency, areca nut brought into Champhai through Zokhawthar was collected and then trucked out of Mizoram via Vairengte to Silchar. “The consignments are shown as sales between a succession of shell firms registered in Mizoram and Assam, supported by invoices, e-way bills and transport documents describing the nut as Indian-origin produce,” it said, adding that many of these firms were closed and replaced once they attracted the attention of enforcement agencies.

Storage, repackaging and transport hubs

From Silchar, the consignments were allegedly moved by road to godowns in and around Guwahati, where they were stored, repackaged and re-documented. “This leg is managed by Bikaner Assam Roadlines India Limited and its associated concerns, controlled by Sushil Daga, whose premises were covered in the search action of July 3,” the ED alleged.

The consignments were then moved through the Siliguri corridor into north Bengal and onward to other States, where the areca nut was allegedly sold to gutka and pan masala manufacturers at a fraction of the duty-paid price. The ED further alleged that the Siliguri network collected monthly protection money from transporters in exchange for tokens and code words to ensure unhindered passage.

Financial trail and alleged laundering

“Payments flow back along the same chain through layers of bank accounts held in the names of relatives, employees and shell entities, followed by large cash withdrawals routed through ‘hawala’ channels. The proceeds of crime have been invested in immovable properties, vehicles and other assets… Bank credits exceeding ₹1,000 crore have been identified in accounts connected with the syndicate,” the agency said.

Seizures and continuing inquiry

In addition to the seizure of about ₹95 lakh in unaccounted cash and the freezing of fixed deposits worth nearly ₹85 lakh on Monday, the searches targeted premises linked to companies and individuals the agency believes are integral to the alleged network. The ED’s findings outline a supply chain the agency says spans cross-border smuggling routes, shell firms, protection payments and layered financial transactions.

Significance

The ED’s latest searches underscore the scale and complexity of alleged areca nut smuggling through the Indo-Myanmar border, with purported links to logistics operators, front entities and buyers across multiple States. The agency’s account of forged documentation, protection payments and suspected laundering through a web of accounts points to a syndicate that, it alleges, has handled bank credits exceeding ₹1,000 crore. The investigation centres on dismantling what the ED describes as a structured network moving foreign-origin areca nut into India and disguising it as domestic produce to evade duties and taxes.