ED Files PMLA Complaint Against 19 In Liquor Smuggling Racket

The Directorate of Enforcement (ED) has filed a prosecution complaint under the Prevention of Money Laundering Act (PMLA) against 19 accused individuals and 14 bonded warehouse entities in connection with an alleged liquor smuggling and money laundering racket operating between Arunachal Pradesh and Assam.

The complaint was filed by the ED's Guwahati Zonal Office, which launched an investigation based on 173 FIRs registered by Assam Police across districts along the Assam-Arunachal Pradesh border. The agency alleged that the accused ran an organized network involved in the clandestine manufacture and large-scale smuggling of liquor from Arunachal Pradesh into Assam to evade higher excise duty and Value Added Tax (VAT).

According to the ED, the smuggled liquor carried labels stating 'For sale in Arunachal Pradesh' but was transported into Assam without valid transit permits or Excise Verification Certificates (EVC). The agency said that Assam Excise authorities seized more than 2.63 lakh bulk litres of such liquor, valued at about Rs. 52.77 crore, in 739 incidents between January 2023 and April 2026.

The ED alleged that the accused, including Sanjay Dewan, Niraj Sharma, Rajan Lohia, Shankar Deb, and Sameer Mehta, operated a virtual monopoly over the liquor trade in Arunachal Pradesh through a network of manufacturing units, bonded warehouses, wholesale businesses, and retail outlets. The agency also alleged that the accused unlawfully took control of statutory licences issued to local indigenous residents without the required approval from district and excise authorities.

The ED further alleged that the accused used dummy directors in manufacturing units and bonded warehouses, with no real managerial or financial authority. The agency also alleged that manufacturing units increased their installed capacities without corresponding duty payments, resulting in surplus liquor meant for smuggling.

The proceeds of crime were allegedly laundered through a four-tier mechanism involving wholesale liquor entities, bonded warehouses, and manufacturing units before being integrated as 'profit shares' and untainted income in personal and Hindu Undivided Family (HUF) accounts and invested in movable and immovable properties.

The ED's investigation has revealed a complex web of money laundering and smuggling, with the accused using various tactics to evade detection. The agency's complaint marks a significant step in the investigation and prosecution of those involved in the racket.

The case highlights the need for stricter enforcement of excise laws and regulations to prevent the smuggling of liquor and other goods. It also underscores the importance of cooperation between law enforcement agencies to combat organized crime.

The ED's action is expected to have a significant impact on the liquor trade in Arunachal Pradesh and Assam, and may lead to further investigations and prosecutions in the future.

In conclusion, the ED's complaint against the 19 accused individuals and 14 entities marks a major development in the investigation into the alleged liquor smuggling and money laundering racket operating between Arunachal Pradesh and Assam. The case is a reminder of the need for vigilance and cooperation to prevent organized crime and protect the public interest.