ED cracks down on liquor smuggling network with raids across Arunachal Pradesh
Itanagar, April 25 (IANS) The Enforcement Directorate (ED) has carried out search operations at nine premises linked to wholesale liquor businesses across Arunachal Pradesh, intensifying its probe into an alleged large-scale illegal liquor smuggling network in the region, the central probe agency said on Saturday.
The ED, Guwahati Zonal Office, conducted the search operations on Thursday (April 23) under the Prevention of Money Laundering Act (PMLA), 2002, at nine premises of wholesale liquor entities spread across Arunachal Pradesh as part of its ongoing investigation into a large-scale illegal liquor smuggling network. The search operation was conducted in Itanagar, Nahagarlagun, Seppa, Ziro, Daporijo, Namsai and Roing.
ED initiated an investigation based on multiple FIRs registered by the Assam Police concerning illegal transportation/smuggling of liquor from Arunachal Pradesh into Assam, supplemented by a reference from the Assam Excise Department, the agency said in a statement.
It said that a case was recorded on October 17, 2024, and the scope has since been expanded through an addendum to include 173 additional FIRs.
Earlier search actions on February 4, 2025 at the premises of three principal manufacturers of liquor in Arunachal Pradesh, alleged to be the kingpins of the network, had indicated that the syndicate exploits the inter-state excise-duty differential by using a chain of manufacturers, bonded warehouses and wholesalers, concealing beneficial ownership behind tribal partnerships and dummy licence holders, and diverting liquor meant for Arunachal Pradesh for illegal sale in Assam and other states.
The ED said that the PMLA investigation has so far revealed that the three kingpins control over 25 entities. The searches revealed that every entity is run on a benami/dummy licence held in the name of a local resident, while actual financial and managerial control vests in the kingpins, with each wholesaler procuring liquor exclusively from 1-2 bonded warehouses owned by its own beneficial controller.
The wholesale bank accounts examined show 51 per cent to 90 per cent of total credits as unexplained cash deposits, accompanied by systematic invoice-splitting below Rs 2 lakh, including over 200 bills of an identical Rs 1,99,554 in a single month at one spot.
On-site managers of the wholesalers confirmed the beneficial ownership of the kingpins as books, stock registers and daily cash proceeds were found to be physically routed to the kingpins’ central offices, and approximately Rs 40 lakh in unexplained cash was seized during the action.
Additionally, 14 seals (including seals of the “Excise Department, Government of Arunachal Pradesh”) were seized from one premise, prima facie used to fabricate transport permits, corroborating the trail of undocumented physical movement of liquor smuggled into Assam. Further investigation is underway.
–IANS
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