Guwahati, July 29: The Enforcement Directorate (ED) has filed a prosecution complaint against 19 individuals under the Prevention of Money Laundering Act (PMLA), 2002, in connection with a large-scale alcohol smuggling and money laundering racket operating between Arunachal Pradesh and Assam. Among the accused are five primary suspects and 14 bonded warehouse companies.
According to an official statement from the ED’s Guwahati zonal office, the main accused include Sanjay Diwan, Neeraj Sharma, Rajan Lohia, Shankar Deb, and Sameer Mehta. This case involves the clandestine production and illegal transportation of alcohol from Arunachal Pradesh to Assam, leading to significant tax evasion and illicit earnings.
The investigation into money laundering was initiated based on 173 FIRs registered by Assam police in districts along the Assam-Arunachal Pradesh border. Banking analysis conducted by the ED revealed that nine wholesale companies received cash deposits totaling approximately ₹1,047.93 crore, which the agency considers to be proceeds of crime.
These funds were subsequently transferred to 14 bonded warehouse companies via RTGS and NEFT, collected at the manufacturing level, and ultimately presented as legitimate business profits. Allegedly, the laundered amounts were diverted into personal and Hindu Undivided Family (HUF) accounts and invested in movable and immovable properties.
The ED alleges that the accused operated a well-organized syndicate that manufactured alcohol in Arunachal Pradesh and smuggled it into Assam without the necessary transit permits or Excise Verification Certificates (EVC).
Reports indicate that the bottles of alcohol were labeled “For Sale in Arunachal Pradesh,” but were illegally sent to Assam to evade the state’s high excise duty and value-added tax (VAT).
According to the agency, Assam excise officials seized over 2.63 lakh bulk liters of such alcohol in 739 separate cases between January 2023 and April 2026, valued at approximately ₹52.77 crore. The ED stated that these seizures represent only a small fraction of the total quantity allegedly smuggled into the state.
The investigation also revealed that three main accused—Diwan, Sharma, and Lohia—had established near-total control over the alcohol trade in Arunachal Pradesh through a vast network of manufacturing units, bonded warehouses, wholesale distributors, and retail outlets.
Investigators further alleged that the manufacturing units significantly increased their production capacity without paying the requisite excise duties, resulting in substantial quantities of unaccounted alcohol that were later smuggled into Assam.
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D.K./A.B.M.
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