ED raids India–Myanmar border, finds financial links in drug trafficking

The Enforcement Directorate (ED) on Thursday carried out its first-ever searches along the India–Myanmar border, launching a major money laundering investigation into a heroin trafficking network that exposed a complex flow of precursor chemicals, illicit cash transfers and interstate financial linkages, officials said.

Raids were conducted in Aizawl and Champhai in Mizoram, Sribhumi (Karimganj) in Assam and Ahmedabad in Gujarat under the Prevention of Money Laundering Act (PMLA). The operation stems from a Mizoram Police FIR linked to the seizure of 4.72 kg of heroin worth more than ₹1.41 crore from six individuals.

Officials said the action in Champhai, a key transit point on the porous India–Myanmar frontier was the first time the ED has entered the border district, which has long been used by traffickers for the cross-border movement of drugs and proceeds generated through narco-hawala channels. During the searches, the agency recovered ₹35 lakh in cash and several digital devices.

A financial probe found that Mizoram-based firms had extensive dealings with companies in Gujarat that allegedly supplied pseudoephedrine tablets and caffeine anhydrous chemicals used in the manufacture of methamphetamine. Investigators also uncovered transactions routed through Kolkata-based shell entities, indicating a multi-layered financial network supporting both the movement of precursor chemicals into Myanmar and the flow of drug money back into India.

According to the ED, precursor chemicals are transported from India across the Myanmar border, where they are converted into methamphetamine tablets in illicit laboratories. The finished product is then smuggled back into India primarily through Mizoram while the associated funds move through a dispersed network of narco-hawala operators. The agency identified ₹52.8 crore in deposits in accounts linked to these operators across Assam, Mizoram, Nagaland, West Bengal, Tripura and Delhi.

Officials said the revelations could push India and Myanmar to bolster joint anti-drug efforts through enhanced intelligence sharing, border security coordination and diplomatic engagement. They warned, however, that gaps in enforcement on the Myanmar side could hamper sustained progress.

Several hawala operators are currently being questioned as the cross-border investigation continues.