Itanagar, April 26: The Enforcement Directorate (ED) conducted searches at nine premises associated with wholesale liquor firms across Arunachal Pradesh on April 23, intensifying its investigation into an alleged smuggling network routing liquor into Assam and other regions.
Officials from the Guwahati Zonal Office carried out operations in Itanagar, Naharlagun, Seppa, Ziro, Daporijo, Namsai and Roing under provisions of the Prevention of Money Laundering Act (PMLA). The probe stems from multiple FIRs registered by Assam Police and inputs from the Assam Excise Department pointing to illegal cross-border movement of liquor.
According to investigators, the case originated from a complaint filed on October 17, 2024, and later expanded to include 173 additional FIRs. Earlier enforcement action in February 2025 had targeted three major manufacturers suspected of orchestrating the network.
The ED said preliminary findings indicate a structured operation exploiting differences in excise duty between states. Liquor produced for sale in Arunachal Pradesh was allegedly diverted through bonded warehouses and wholesale channels using proxy licence holders and tribal partnerships to conceal ownership.
Investigators believe three key operators control more than 25 linked entities, with wholesalers functioning under fictitious licences while financial control remained concentrated with the alleged masterminds. Bank analysis reportedly showed a high proportion of unexplained cash deposits, alongside irregular billing practices, including repeated invoicing below ₹2 lakh thresholds.
During the searches, officials seized around ₹40 lakh in unaccounted cash, along with stock registers, daily transaction records and documents linking operations to central handlers. Statements from on-site staff reportedly corroborated the ownership structure.
Authorities also recovered 14 forged seals, including counterfeit stamps purportedly issued by the Excise Department of Arunachal Pradesh, suspected to have been used to generate fake transport permits for moving liquor into Assam.
The ED said the alleged network not only resulted in loss of excise revenue to Arunachal Pradesh but also enabled the influx of untaxed liquor into Assam, affecting regulated trade. Further investigation is underway, with additional leads under examination.
