STAFF REPORTER
GUWAHATI: The Directorate of Enforcement (ED), Guwahati Zonal Office, carried out extensive search operations across Assam, Mizoram, West Bengal and Uttar Pradesh in connection with an alleged organised syndicate involved in smuggling betel nut (areca nut) across the Indo-Myanmar border and laundering the proceeds of crime.
The searches were conducted on July 3 under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002, at 20 locations linked to individuals and firms allegedly connected with the network.
According to officials, the case originated from multiple FIRs registered in Assam relating to the illegal smuggling of areca nut and customs duty evasion under the provisions of the IPC and the Customs Act. The probe also drew inputs from the Directorate of Revenue Intelligence (DRI), which earlier seized 655.32 metric tonnes of areca nut along with transport vehicles, following directions of the Gauhati High Court.
The ED investigation revealed that the syndicate operated through a network of suppliers based in Mizoram (predominantly Champhai district) allegedly involved in smuggling areca nut across the Indo-Myanmar border, namely Hmingthanzami (proprietor, Beki Kuhva Dawr), Lalrinchhani (proprietor, L R Store) and Lalenkawli (proprietor, K.L. Store); facilitators based in Assam, namely Abub Ahmed Mazumder (one of the key facilitators of the syndicate) and Prodip Kumar Paul (proprietor, Sarada Traders); consignees and financiers based in West Bengal and Uttar Pradesh, namely Jay Matajee Enterprises of Falakata, M/s Nabadwip Arecanut Processing Pvt. Ltd. of Nabadwip, Shubh Trading Company of Varanasi and Chimera Infrastructure Pvt. Ltd. of Varanasi; an invoice provider allegedly facilitating circular trading, namely Shashi Kumar Choudhary (proprietor, SK Enterprises) of Kolkata; and the logistics facilitator, Bikaner Assam Roadlines India Limited, Guwahati.
The investigation also revealed that the syndicate allegedly smuggled foreign-origin areca nut from Myanmar across the Indo-Myanmar border through the Champhai-Zokhawthar route, even though Champhai itself recorded no areca nut production. Official production data obtained from Central and State government agencies showed that Champhai district, from which the bulk of the consignments were claimed to have originated, recorded nil domestic production of areca nut during the relevant years, corroborating the allegation that the goods were of foreign origin and had been smuggled across the Indo-Myanmar border. To give the consignments an appearance of legitimacy, the group allegedly used forged GST invoices, bogus supplier and buyer firms, and false transport documents. The proceeds were then allegedly layered through buyers in West Bengal and Uttar Pradesh, who paid hawala operators in Silchar and other parts of Assam. These operators allegedly routed the money through transit accounts in Mizoram Rural Bank to conceal the identity of the actual depositors before transferring it to the smugglers in Champhai. Finally, large cash withdrawals from those accounts were allegedly sent back to suppliers in Myanmar through hawala channels, completing the alleged laundering cycle.
Preliminary financial analysis indicated that more than ?1,500 crore in proceeds of crime had been generated and circulated through multiple accounts and shell entities, officials said.
Also Read: Assam Bank Fraud: ED Files Money Laundering Case Over Rs 7.28 Crore Scam