ED Searches Eleven Premises in Narcotics Proceeds and Crypto Asset Probe

The Enforcement Directorate’s Mumbai Zonal Office-I searched 11 premises across Maharashtra and Gujarat on 28 October 2026 in a probe into the alleged laundering of proceeds generated by an international narcotics network. The searches targeted assets and financial channels allegedly connected with Navin Chichkar, Dhiraj Chichkar and their associates, including suspected crypto wallets and investments in businesses.

Key Highlights :

• Searches covered 11 premises in Mumbai and Navi Mumbai in Maharashtra, and Surat and Bhavnagar in Gujarat.
• The ED investigation followed an NCB Mumbai complaint under the Narcotic Drugs and Psychotropic Substances Act after seizures of hydroponic cannabis, cocaine and unaccounted cash.
• The syndicate is alleged to have dealt in cocaine, hydroponic cannabis, LSD and cannabis edibles, with supplies largely sourced from outside India.
• The ED seized digital devices, commercial books of account, financial ledgers and investment records.
• The agency says drug-sale cash was converted into foreign currencies, including US dollars and Thai Baht, and routed into businesses to make it appear legitimate.
• Searches at premises associated with crypto traders revealed wallet and asset details prima facie linked to suspected proceeds; tracing of accounts and transactions is continuing.

Background :

• The ED says the NCB complaint followed seizures of narcotics and unaccounted cash in Mumbai and Navi Mumbai.
• The investigation focuses on the alleged movement of cash proceeds into the financial system and subsequent layering to disguise their origin.
• The press release does not quantify the narcotics seized, the cash amount, the value of crypto assets or any property attached.

What Has Changed :

Entity - Premises linked to alleged syndicate members and associates

Allegation / Violation Action- Suspected laundering of proceeds from narcotics sales, including conversion of cash into foreign currency and investment in apparently legitimate businesses. Searches at 11 premises; digital devices, books of account, ledgers and investment records seized.

Taken Next Step- ED is examining financial records and tracing the proceeds of crime.

Entity- Crypto trader premises / wallets Crypto wallets and assets were found prima facie linked to proceeds of crime.

Allegation / Violation Action- Wallet and asset details identified; no quantified seizure or freeze is stated.

Taken Next Step- Linked accounts and transaction histories are being examined.

Who Is Affected :

• Navin Chichkar, Dhiraj Chichkar and other persons alleged to be associated with the narcotics network.
• Businesses, financial accounts and crypto wallets identified during the investigation.
• Persons or entities whose devices and records were seized, subject to the scope of the search proceedings.

Compliance Action Points :

No direct compliance action for the general audience is stated in the press release. Any recipient of a formal search, seizure or attachment document should comply with that document; no attachment order is reported here.

Analysis & Impact :

• CA / CS / Tax & Legal Professionals: The reported methods include cash conversion, foreign-currency movement, business investment and crypto transfers. Enhanced source-of-funds checks and beneficial-ownership review may be relevant where a client or counterparty is linked to the investigated transactions.
• Businesses & Investors: The case highlights potential exposure for businesses allegedly used to introduce illicit proceeds into legitimate accounts or operations.
• News Readers: The ED is investigating suspected laundering connected with narcotics trafficking; the searches are investigative steps, not findings of guilt.
• Points to Watch: The release does not disclose the value of assets traced, whether crypto assets have been frozen, or whether provisional attachment proceedings have begun.

References :

• Prevention of Money Laundering Act, 2002 – basis for the ED search and proceeds-of-crime investigation; specific sections are not stated in source.
• Narcotic Drugs and Psychotropic Substances Act, 1985 – provisions cited generally in the NCB complaint; exact sections are not stated in source.

Source & Attribution :

Directorate of Enforcement, Mumbai Zonal Office-I, press release dated 30 October 2026. Official press release supplied by the user; public URL and NCB complaint number not stated in source.

Disclaimer: This summary is an editorial aid prepared from publicly available information. It is not legal, tax or investment advice. Refer to the original notification, circular, order or report before acting.