Itanagar, Apr 27: The Directorate of Enforcement (ED), Guwahati Zonal Office, carried out search operations at nine premises of wholesale liquor entities across Arunachal Pradesh recently as part of an ongoing investigation into an alleged large-scale illegal liquor smuggling network.
The searches were conducted under the provisions of the Prevention of Money Laundering Act, 2002 at locations including Itanagar, Naharlagun, Seppa, Ziro, Daporijo, Namsai, and Roing.
According to officials, the investigation was initiated based on multiple FIRs registered by Assam Police regarding illegal transportation of liquor from Arunachal Pradesh into Assam, along with inputs from the Assam Excise Department. An Enforcement Case Information Report (ECIR) was registered on October 17, 2024, and later expanded to include 173 additional FIRs.
Earlier searches conducted in February 2025 at premises of three alleged key manufacturers had indicated the existence of a syndicate exploiting inter-state excise duty differences. The network allegedly operated through a chain of manufacturers, bonded warehouses, and wholesalers, using benami licences and dummy partnerships to divert liquor meant for Arunachal Pradesh to other states.
During the latest operation, investigators reportedly found that wholesale entities were being run in the names of local residents, while actual financial and managerial control rested with the alleged kingpins. Bank accounts examined revealed that 51 to 90 percent of total credits comprised unexplained cash deposits. Officials also detected systematic invoice splitting below Rs 2 lakh, including instances of over 200 bills of identical value generated within a single month.
Search teams recovered documents indicating that operational records, including stock registers and daily cash proceeds, were being routed to central offices controlled by the alleged masterminds. Approximately Rs 40 lakh in unaccounted cash was seized during the operation.
Additionally, 14 seals, including those bearing the name of the Excise Department, Govt of Arunachal Pradesh, were seized from one premises. These are suspected to have been used for fabricating transport permits, pointing to illegal movement of liquor into Assam.
Further investigation in the case is ongoing, officials said.