The Enforcement Directorate has reportedly widened its areca nut smuggling investigation to examine the possible involvement of GST and Central GST officials. Investigators are looking into allegations that foreign-origin consignments entering India through Myanmar were moved across states using forged invoices, fake e-way bills and other transport documents. The suspected supply chain reportedly extended from Mizoram through Assam and West Bengal to markets in several other states. The allegations remain under investigation, and no court has established the guilt of the officials or other individuals concerned.
ED Widens Areca Nut Smuggling Probe as GST Officials Face Scrutiny
The Enforcement Directorate is investigating the alleged role of tax officials in a cross-border smuggling and money laundering network involving areca nuts, forged invoices and suspected illegal payments.
The probe into the smuggling of areca nuts has gone beyond transporters and businesses, with the ED’s Guwahati Zonal Office reportedly probing GST and Central GST officials for possible facilitation in ferrying consignments across state borders.
Areca Nut Smuggling Probe Examines GST Officials
Investigators are looking into whether officials knowingly aided the movement of allegedly smuggled goods with fake invoices, fake electronic waybills and other transit documents. The names of the officers under investigation have not been released.
The probe is to ascertain whether foreign areca nuts were passed off as genuine domestic consignments through fake documentation. An e-way bill or electronic waybill captures details on the goods, suppliers, buyers, and the vehicles carrying shipments.
The allegations have not been proven, and no court has established the involvement of the officials or individuals allegedly under investigation.
Smuggling Route Linked to Myanmar and Multiple States
The probe has indicated that areca nuts from countries such as Indonesia and Thailand were allegedly smuggled into Mizoram through Myanmar and then moved to Assam and West Bengal.
The consignments were then allegedly taken to Bihar, Uttar Pradesh and Maharashtra, where the goods were reportedly supplied to businesses, including manufacturers of gutka and pan masala.
Previous investigations had accused local residents of being front owners of companies involved in financial transactions. The ED had also conducted searches at 16 locations in Assam and West Bengal in October in the course of its probe.
The premises included those linked to transporters Dhiraj Ghosh, Binoy Barman, Sandeep Baid, businessman Navratan Baid and two firms based in Guwahati.
ED Traced More Than ₹970 Crore in Suspected Proceeds
The ED said in an official statement that bank-account analysis had found suspected proceeds of crime of over ₹970 crore flowing through several accounts between 2013 and 2025.
The agency alleged that commissions were paid to local facilitators for procurement, transportation, escorting consignments, and customs-related activities. It was alleged that payments from ₹20 lakh to over ₹1 crore were made to secure the release of consignments seized by Customs authorities.
The investigators also said that unrelated Bills of Entry declaring imported goods to Customs were used to make smuggled areca nuts appear as legally imported. Previous searches have resulted in the seizure of documents, property records, business records and electronic devices.
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Alleged Payment Network and Political Controversy
Investigations are also underway into allegations that a Siliguri-based network was collecting a monthly charge from truck operators. In exchange, operators were allegedly given tokens that were supposed to ensure unhindered passage through parts of Assam, West Bengal and Bihar.
This alleged mechanism has figured in political debate under the name ‘Abhishek Tax’ and ‘Goonda Tax’. These are political characterisations, not established findings of criminal liability.
Moneycontrol reported that the larger syndicate was allegedly involved in consignments worth around ₹1,500 crore and connected to more than 11 cases.
The ED probe is aimed at tracking financial transactions, identifying intermediaries, and determining whether public officials aided the alleged network. The agency has not publicly identified the GST and CGST officers reportedly under probe.
The investigation into the areca nut smuggling is ongoing, and it will be the role of investigators to establish the evidence to link individuals, businesses and officials to any alleged misconduct. The case also demonstrates the need to verify suppliers, GST registrations, invoices and transport documentation to minimise the risk of exposure to potentially fraudulent supply chains.
