Enforcement Directorate Search Operations on Narco–Money Laundering Network in Multiple States.

Headnote:

The Enforcement Directorate (ED) conducted extensive search operations on 27.11.2025 under the Prevention of Money Laundering Act (PMLA), 2002, across locations in Mizoram, Assam, and Gujarat. The searches were triggered by a narcotics case involving seizure of 4.724 kg of heroin and subsequent financial investigation, which uncovered a large-scale cross-border methamphetamine precursor supply chain, hawala networks, money laundering routes, and misuse of GST credentials by Myanmar nationals. ED seized ₹46.7 lakh in cash, incriminating evidence, and froze 21 bank accounts suspected to contain proceeds of crime.

Background:

• ED initiated investigation based on an FIR registered by Mizoram Police under Sections 21(C), 25 and 29 of the NDPS Act, 1985, involving seizure of 4.724 kg heroin worth ₹1.41 crore from six individuals, with nine persons arrested in total.

• Financial analysis revealed connections between Mizoram-based entities and Gujarat-based Krishiv Enterprises, which supplied Pseudoephedrine tablets and Caffeine Anhydrous worth ₹4.54 crore in 2024–25.

• These supplies were linked to individuals Henry Lalbiakzinga, Laltluangzela, and Benjamin Lalawmpuai, who routed smuggling and hawala operations through habitual offenders Abu Saleh Saif Uddin, Zodinthara, and Lalrampari.

• Mizoram-based entities—Bill Enterprises, RK Two Sisters Store, LH Pharmacy, and KC Pharmacy—were found to have financial ties with Kolkata-based shell companies, including Mahasin Tradecom managed by Mohd Zafar, linked to Abu Saleh Saif Uddin.

• Precursors were transported from India to Myanmar through porous borders, used in methamphetamine production, with finished drugs trafficked back into India through Mizoram.

Court’s Observations :

• ED found misuse of GST credentials of Indian nationals by Myanmar-based operatives to procure raw materials essential for methamphetamine manufacturing.

• Indians procured Pseudoephedrine tablets and Caffeine Anhydrous on behalf of Myanmar nationals, enabling a cross-border narcotics production network.

• Hawala networks handled large-scale cash movement:

– ₹11 crore credited to accounts of Abu Saleh Saif Uddin

– ₹52.8 crore credited to accounts of narco-hawala operator Lalrampari, with deposits across Assam, Mizoram, Nagaland, West Bengal, Tripura, and Delhi

• ED seized ₹46.7 lakh in cash and multiple digital devices and account books belonging to entities involved in the network.

• The investigation confirmed a multi-state and cross-border drug–money laundering chain involving procurement, smuggling, financial layering, and laundering of proceeds of crime.

Legal Provisions Discussed:

• Prevention of Money Laundering Act, 2002 – Search, seizure, and attachment powers exercised; 21 bank accounts frozen under Section 17(1A).

• Narcotic Drugs and Psychotropic Substances Act, 1985 – Sections 21(C), 25, 29 forming the predicate offence involving heroin seizure.

• NDPS-RCS Order, 2013 – Schedule A/B/C substances involved (Pseudoephedrine).

Status

Further investigation is ongoing.