The Enforcement Directorate is investigating an alleged cross-border areca nut smuggling network operating from Myanmar through Mizoram and onward into Assam and other Indian markets. The agency estimates that 3,103 metric tonnes of dry areca nuts, valued at ₹1,022.25 crore for customs assessment, were smuggled into India, allegedly resulting in a customs duty loss of ₹408.90 crore. The probe, initiated under the Prevention of Money Laundering Act, follows a CBI case registered in Imphal in 2025. The ED has attached properties worth ₹9.33 crore, according to the supplied report.
Areca Nut Smuggling From Myanmar Caused ₹408.90 Crore Customs Duty Loss, ED Probe Finds
The Enforcement Directorate has alleged that an organised cross-border network smuggled 3,103 metric tons of areca nuts from Myanmar through Mizoram and attached properties worth ₹9.33 crore.
Smuggling of Areca nut from Myanmar through Mizoram allegedly caused a loss of Rs 408.90 crore as customs duty, the Enforcement Directorate (ED) said in an investigation into a cross-border network operating along India’s porous frontier.
The agency estimated that some 3,103 metric tons of dry areca nuts valued at ₹1,022.25 crore for customs assessment were smuggled into India through alleged operations. The investigation is being carried out under the Prevention of Money Laundering Act (PMLA), 2002.
The case was first registered by the Central Bureau of Investigation (CBI) at Imphal, Manipur in 2025. The ED later probed the suspected money trail and alleged financial gains made through the illegal trade.
Areca nut smuggling from Myanmar involved an organised network
According to the ED, the Myanmar-based suppliers have allegedly moved the areca nuts into India through the Tiau River and unfenced border areas near Zokhawthar town in Mizoram’s Champhai district.
The consignments were allegedly acquired by local facilitators who coordinated their movement toward Assam and other destinations by arranging storage and transportation. Investigators say the network used a number of middlemen to transport the goods across state lines.
The consignments are reportedly being ferried through Silchar in southern Assam to reach Guwahati. Then supplies moved through the Siliguri corridor in northern West Bengal to markets elsewhere in India.
Most of the areca nuts were allegedly supplied to gutka and paan masala manufacturers in Delhi, Uttar Pradesh, Maharashtra and other places. Thus, the suspected supply chain was not limited to the border districts of Mizoram.
The ED sources said investigators also found the alleged use of local persons as claimants or owners of intercepted consignments before customs authorities. Payments to suppliers in Myanmar were allegedly made through bank accounts and money exchangers, involving large sums of money.
Also Read: Kerala High Court Orders FIR Against Pinarayi Vijayan in CMRL Case
ED attaches properties worth ₹9.33 crore in Mizoram
In the course of the investigation, ED has attached 10 immovable properties, including Hotel Jade and residential land in and around Champhai district bordering Myanmar.
The attached properties were valued at Rs. 8,12,74,399 or about Rs. 8.13 crore. The agency had earlier frozen bank balances worth ₹1.20 crore, taking the total value of attached assets and frozen balances to about ₹9.33 crore.
The ED said the properties were identified as alleged proceeds of crime or properties representing the value. The attachments were made under the Prevention of Money Laundering Act, 2002 (PMLA).
The agency said searches of bank accounts and materials seized in the searches uncovered large financial transactions, cash deposits and withdrawals, and property purchases that were allegedly funded with proceeds from smuggling.
Five persons have been identified as accused by the investigators in connection with alleged procurement, transportation, storage and trading of areca nuts of Myanmar origin. The names of the ED were Zosangpuii, Thangkhanmunga, Zonsanga and Sangneihvela, but the report said there were only four accused while listing five accused.
The agency further alleged that Hotel Jade at Bethel Veng in Champhai was built with the proceeds of illegal smuggling and trading of Myanmar-origin areca nuts.
Separate Assam case widens investigation into smuggling network
In another case registered by the Assam Police, the ED had raided 16 locations in Guwahati (Assam), Siliguri, Bagdogra, Fansidewa and Cooch Behar (all in West Bengal) on 5 October.
The agency said investigators had detected bank credits of Rs 1,000 crore linked to the suspected cross-border areca nut smuggling network. The figure relates to identified banking transactions and should not be taken as automatically equating to proven criminal proceeds.
The investigations point to concerns about evasion of customs duties, cross-border trade surveillance, and movement of suspected illicit funds through financial channels.
Further investigation is expected to look into the alleged financial links, identify other participants and establish the sources of the funds and assets. The allegations are subject to the legal process, and the attachment of property does not establish guilt on its own.
Sprouts News will monitor developments closely as the investigators seek to dismantle the alleged network and evaluate the wider financial impact of the suspected smuggling activities.
