ED searches 16 places linked to smuggling of foreign-origin betel nut via the Indo-Myanmar border

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The ED probe is based on 11 First Information Reports registered by the police in Assam and West Bengal. Representative image | Photo Credit: Siva Saravanan

The Enforcement Directorate (ED) has conducted searches at multiple locations in connection with the smuggling of foreign-origin areca nut (betel nut) into India through the Indo-Myanmar border.

The searches were carried out at 16 places in Guwahati in Assam; and Siliguri, Bagdogra, Phansidewa and Cooch Behar in West Bengal. The premises were linked to DNG Biotech Private Limited, Jai Karni Tradings Private Limited, Purvottar Agro Private Limited, N.R. Associates, and connected individuals, the agency said on Monday (October 5, 2026). Unaccounted cash of about ₹95 lakh was seized, fixed deposits worth nearly ₹85 lakh have been frozen.

The ED probe is based on 11 First Information Reports registered by the police in Assam and West Bengal. The cases allege the smuggling, transportation and sale of betel nut of Indonesian, Thai and Burmese origin. The consignments were brought into Mizoram through Myanmar and taken to West Bengal, Bihar, Uttar Pradesh, Maharashtra, and other States using forged Goods and Services Tax invoices, e-way bills, and transport documents.

Describing it as a “well-organised” racket, the ED alleged that dried areca nut consignments were brought overland to the Indo-Myanmar border opposite Champhai in Mizoram, and ferried across the Tiau river at Zokhawthar in small lots, bypassing the Land Customs Station. Agents on the Myanmar side allegedly sold the consignments to front firms on the Indian side.

The firms allegedly involved in the smuggling were proprietorship concerns registered in the names of local residents of Champhai. Their GST registrations and bank accounts were allegedly set up, funded and operated by controllers based in Silchar in Assam, who retained the cheque books and banking credentials. Champhai has no recorded production of areca nut and, until recently, Mizoram had no betel nut drying or processing units, the agency said.

According to the ED, the betel nut is collected in Champhai after being brought in through Zokhawthar and then trucked out of Mizoram via Vairengte to Silchar. “The consignments are shown as sales between a succession of shell firms registered in Mizoram and Assam, supported by invoices, e-way bills and transport documents describing the nut as Indian-origin produce,” it said, adding that the firms were closed and replaced once they drew the attention of enforcement agencies.

The consignments were moved from Silchar by road to godowns in and around Guwahati, where they were stored, repackaged and re-documented. “This leg is managed by Bikaner Assam Roadlines India Limited and its associated concerns, controlled by Sushil Daga, whose premises were covered in the search action of July 3,” the ED alleged.

The betel nut moved from Silchar via the Siliguri corridor into north Bengal and onward to other States, where it was allegedly sold to gutka and pan masala manufacturers at a fraction of the duty-paid price. The Siliguri network allegedly collected monthly protection money from transporters in exchange for tokens and code words, ensuring unhindered passage.

“Payments flow back along the same chain through layers of bank accounts held in the names of relatives, employees and shell entities, followed by large cash withdrawals routed through ‘hawala’ channels. The proceeds of crime have been invested in immovable properties, vehicles and other assets...Bank credits exceeding ₹1,000 crore have been identified in accounts connected with the syndicate,” the agency said.

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