Forged GST Invoices, Hawala Trail Exposed in Massive Areca Nut Smuggling Racket: ED

The Enforcement Directorate (ED) has uncovered the alleged workings of a Rs 1,500-crore India-Myanmar betel nut smuggling and money laundering network , revealing the use of forged GST invoices, bogus firms, hawala channels and rural bank accounts to conceal illegal transactions.

The findings emerged after the agency carried out searches at 20 locations across Assam, Mizoram, West Bengal and Uttar Pradesh on July 3 as part of an investigation under the Prevention of Money Laundering Act (PMLA) . The case is based on multiple FIRs registered by the Assam Police and the Directorate of Revenue Intelligence (DRI) .

According to the ED, the syndicate sourced foreign-origin areca nut from across the India-Myanmar border through the Champhai-Zokhawthar route in Mizoram. The smuggled consignments were allegedly supported by fake GST invoices, fabricated transport documents and shell supplier-buyer firms to make the goods appear legitimate.

Investigators said the operation involved suppliers in Champhai district , facilitators in Assam, financiers in West Bengal and Uttar Pradesh , and a Kolkata-based entity that allegedly generated invoices to facilitate circular trading. The agency noted that official production data showed Champhai recorded zero domestic areca nut production during the relevant period, strengthening its claim that the consignments were of foreign origin.

The ED alleged that sale proceeds were first routed to hawala operators in Assam , who then transferred funds through Mizoram Rural Bank transit accounts to disguise the identity of depositors. Large cash withdrawals were subsequently sent back to suppliers in Myanmar through hawala channels, completing the alleged laundering cycle.

During the coordinated raids, investigators seized Rs 1.30 crore in cash , recovered property documents, title deeds and financial records , and froze 33 bank accounts suspected to be linked to the operation. The agency said the investigation remains underway to identify additional beneficiaries, financial links and assets connected to the alleged cross-border smuggling and laundering network.