India liquor smuggling money laundering

In late July 2026 the Enforcement Directorate (ED) in Guwahati lodged a prosecution complaint under the Prevention of Money Laundering Act against 19 individuals and 14 bonded‑warehouse firms. The case targets a large‑scale operation that manufactured liquor in Arunachal Pradesh and smuggled it into Assam to evade higher excise duty and VAT.

Assam excise authorities seized more than 2.63 lakh litres of illicit liquor, valued at roughly Rs 52.77 crore, across 739 incidents between January 2023 and April 2026. ED’s financial analysis traced cash deposits of about Rs 1,047.93 crore flowing through a four‑tier network of wholesalers, warehouses and hawala channels, which were then pooled, presented as legitimate business profit and diverted into personal, HUF accounts and immovable property.

The later snapshot adds that the three principal accused allegedly held a virtual monopoly over Arunachal’s liquor trade, using dummy directors and proxy licence holders to control manufacturing, warehousing and retail operations. The investigation highlights extensive money‑laundering mechanisms linked to the cross‑border liquor smuggling ring.