‘Myanmar Nationals Misused Indians' GST Details To Buy Drug Raw Material’: ED Busts Cross-Border Narcotics Trafficking Racket - Republic World

‘Myanmar Nationals Misused Indians' GST Details To Buy Drug Raw Material’: ED Busts Cross-Border Narcotics Trafficking Racket | Image: ANI, Freepik

‘Indians' GST Details Misused By Myanmar Nationals For Drugs’: ED Busts Cross-Border Narcotics Trafficking Racket

New Delhi: The Enforcement Directorate (ED) has busted a cross-border narcotics trafficking racket following intensive searches along the India-Myanmar border. The government agency found that Myanmar nationals allegedly misused GST credentials of Indians to purchase raw material required for manufacturing Methamphetamine (Meth) drugs.

The Enforcement Directorate's Aizawl Sub-Zonal Office conducted search operations under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, at various locations across Aizawl and Champhai in Mizoram, Sribhumi (Karimganj) in Assam, and Ahmedabad in Gujarat.

Gujarat-Based Firm Involved

The Enforcement Directorate (ED) initiated an investigation into the trafficking racket on the basis of an FIR registered by Mizoram Police under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985 after 4.724 kg of heroin valued at ₹1.4 crore was seized from six individuals and a total of nine persons were arrested.

From the financial analysis of the arrested persons, financial linkages between Mizoram-based firms and Gujarat-based firms were established.

Gujarat-based firm Krishiv Enterprises allegedly supplied pseudoephedrine tablets and caffeine anhydrous (a pre-precursor used in the manufacturing of methamphetamine tablets) worth ₹4.54 crore to firms based in Mizoram.

Financial linkages were also found with Kolkata-based shell entities, including Mahasin Tradecom, managed by a man named Mohd Zafar.

The precursors used in the production of methamphetamine were being transported from India to Myanmar through porous international borders, following which the final products were sent from Myanmar to India. 

Huge credits of ₹11 crore were noted in the accounts of an habitual offender named Abu Saleh Saif Uddin, including cash deposits in West Bengal. Huge credits of ₹52.8 crore were noted in the bank accounts of narco hawala operator Lalrampari, including cash deposits in Assam, Mizoram, Nagaland, West Bengal, Tripura and Delhi.

₹46.7-Lakh Cash & Incriminating Evidence Seized

During the investigation under the Prevention of Money Laundering Act (PMLA), 2002, cash amounting to ₹46.7 lakh were seized. The ED also seized substantial incriminating evidence, including several digital devices and books of accounts of entities controlled by the said persons.

GST Credentials Misused

Investigations by the Enforcement Directorate (ED) revealed that the GST credentials belonging to Indian nationals were misused by Myanmar nationals to facilitate the purchase of raw materials essential for the manufacture of methamphetamine tablets.

Additionally, evidence indicated that Indians procured pseudoephedrine tablets and caffeine anhydrous on behalf of Myanmar nationals, enabling the cross-border drug production and trafficking network and laundering money in this process.

“This scheme supported the supply chain of narcotics manufacturing, particularly affecting the porous Indo–Myanmar border regions like Mizoram, with financial and smuggling links spanning multiple Indian states and money laundering through these activities,” the ED said.

21 Bank Accounts Suspended

As many as 21 bank accounts suspected to be used for parking the proceeds of crime by the accused entities have been frozen under Section 17(1A) of the Prevention of Money Laundering Act (PMLA), 2002.

Further investigation into the matter is under progress.