Itanagar, April 25: In a major crackdown on illegal liquor trade, the Directorate of Enforcement (ED) has conducted coordinated raids across multiple locations in Arunachal Pradesh, exposing a widespread interstate liquor smuggling network linked to benami licences, fake permits and large-scale cash transactions.
The searches were carried out on April 23 by the ED’s Guwahati Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002, at nine premises of wholesale liquor entities in Itanagar, Naharlagun, Seppa, Ziro, Daporijo, Namsai and Roing.
The investigation stems from several FIRs registered by Assam Police regarding illegal transportation of liquor from Arunachal Pradesh into Assam. Inputs from the Assam Excise Department further strengthened the case. The ED registered an ECIR on October 17, 2024, which was later expanded to include 173 additional FIRs.
Officials said earlier searches conducted in February 2025 had already identified three key liquor manufacturers suspected to be the masterminds of the racket. The syndicate allegedly exploited differences in inter-state excise duties, diverting liquor meant for sale within Arunachal Pradesh to neighbouring states for higher profits.
According to the ED, the network operated through a complex chain of manufacturers, bonded warehouses and wholesale dealers. Ownership structures were deliberately concealed using local residents as dummy licence holders and tribal partnerships, while actual control remained with the kingpins.
The probe has revealed that over 25 entities were being controlled by the main accused. Each wholesale unit was reportedly linked to specific bonded warehouses owned or controlled by the same group.
Financial investigation uncovered that 51 to 90 percent of total credits in the bank accounts of these entities were unexplained cash deposits. Investigators also detected systematic invoice splitting to keep transactions below Rs 2 lakh, including over 200 invoices of identical value—Rs 1,99,554—generated within a month at one location.
During the raids, ED officials seized approximately Rs 40 lakh in unexplained cash. In a significant recovery, 14 official seals, including those of the Excise Department of Arunachal Pradesh, were also found at one premises. These are suspected to have been used to fabricate transport permits, enabling illegal movement of liquor into Assam.
Statements of on-site managers indicated that books of accounts, stock registers and daily collections were centrally controlled by the alleged masterminds.
The ED stated that further investigation is ongoing to trace the money trail and identify all individuals involved in the racket.
