ED searches 16 places linked to smuggling of foreign origin betel nuts across Indo-Myanmar border
The ED investigation is based on 11 first information reports registered by the Assam and West Bengal police. Representative image | Photo credit: Siva Saravanan
The Enforcement Directorate (ED) has conducted searches at several locations in connection with smuggling of areca nuts (betel nuts) of foreign origin into India through the Indo-Myanmar border.
The searches were conducted at 16 locations in Guwahati, 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, NR Associates and related parties, the agency said on Monday (Oct 5, 2026). Unaccounted cash of about ₹95 crore was seized, fixed deposits worth nearly ₹85 crore were frozen.
The ED investigation is based on 11 first information reports registered by the Assam and West Bengal police. The cases refer to the smuggling, transportation and sale of betel nuts of Indonesian, Thai and Burmese origin. The consignments were transported to Mizoram via Myanmar and transported to West Bengal, Bihar, Uttar Pradesh, Maharashtra and other states using forged GST invoices, electronic waybills and shipping documents.
Describing it as a “well-organised” racket, the ED alleged that consignments of dried areca nuts were brought overland to the Indo-Myanmar border opposite Champhai in Mizoram and taken in small batches across the Tiau river at Zokhawthar, bypassing the land customs station. Agents on the Myanmar side allegedly sold the consignments to leading firms on the Indian side.
The firms allegedly involved in the smuggling were proprietary concerns registered in the names of local residents of Champhai. Their GST registrations and bank accounts were allegedly established, funded and operated by trustees based in Silchar, Assam, who retained the check books and bank credentials. Champhai has no recorded areca nut production and until recently Mizoram had no betel nut drying or processing units, the agency said.
According to ED, betel nut is collected in Champhai after being brought via Zokhawthar and then taken from Mizoram via Vairengte to Silchar. “The consignments are shown as sales between a number of shell companies registered in Mizoram and Assam, supported by invoices, electronic waybills and shipping documents describing the nuts as produced in India,” the company said, adding that the companies were closed and replaced once alerted by law 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 section is run by Bikaner Assam Roadlines India Limited and its associated concerns, controlled by Sushil Daga, whose premises were covered in the search operation on July 3,” the ED said.
The betel nut moved from Silchar through the Siliguri corridor to North Bengal and on to other states where it was allegedly sold to gutka and pan masala manufacturers at a fraction of the duty paid. The Siliguri network reportedly collected monthly protection money from transporters in exchange for tokens and code words, which ensured smooth passage.
“Payments flow back in the same chain through layers of bank accounts held in the names of relatives, employees and shell entities, followed by large cash withdrawals channeled through ‘hawala’ channels. Proceeds of crime were invested in real estate, vehicles and other assets…Bank loans exceeding ₹1,000 crore were identified in accounts linked to the syndicate,” the agency said.
Published – 5 Oct 2026 23:06 IST