The Enforcement Directorate has stepped up an investigation into a suspected interstate liquor smuggling and money laundering network by making co-ordinated raids in nine places in Arunachal Pradesh. The कार्रavाई, conducted under the Prevention of Money Laundering Act (PMLA) is one of a broader investigation into a syndicate of businesses, which officials said were taking advantage of the tax discrepancy between states.
Investigators claimed that liquor that was to be sold in Arunachal Pradesh was being diverted illegally into the neighbouring states like Assam where higher taxes offered good margins. The raids involved several towns and included Itanagar, Naharlagun, Seppa, Ziro, Daporijo, Namsai and Roing aiming at wholesale businesses that were suspected of having connections with the network.
The case relies on a number of FIRs filed by the Assam Police on interstate liquor transportation. The investigation was also supported by inputs of the excise department of the state. In October 2024, authorities had previously registered an Enforcement Case Information Report (ECIR), which subsequently had over 170 related FIRs added to it.
It is believed that the racket was run in an intricate network of manufacturers, bonded warehouses, and wholesalers. The network also sought to cover its tracks by incorporating proxy services such as licences registered under local names, relationships with the tribes and dummy operators when the real control or ownership was held by key masterminds.
Previous investigations had already shown that there was an organised operation, and the recent raids have revealed more details of large-scale irregularities. The investigation is still ongoing and the investigators are now looking into the money trails and ownership patterns of those who masterminded the scheme.