ED probe uncovers misuse of GST by Myanmarese for drug manufacturing at Indo-Myanmar border

An investigation led by the Enforcement Directorate (ED) has revealed that Myanmarese nationals "misused" GST credentials of Indians to facilitate the purchase of raw materials required for manufacturing drugs.

The probe, which stems from a Mizoram Police case involving the seizure of heroin, has brought to light cross-border activities impacting the Indo-Myanmar border areas, particularly in Mizoram.

The ED conducted its first series of searches along the India-Myanmar border on 27 November after registering a money laundering case linked to a narcotics trafficking network operating in the region. These operations were carried out under the Prevention of Money Laundering Act (PMLA) and targeted locations in Aizawl and Champhai in Mizoram, Sribhumi in Assam, and Ahmedabad in Gujarat.

India shares a 1,643-kilometre border with Myanmar on its eastern side. According to the Enforcement Directorate, "Evidence gathered during the searches indicated that Indians procured Pseudoephedrine tablets and Caffeine Anhydrous on behalf of Myanmar nationals, enabling trans-border drug production and trafficking apart from money laundering," the Enforcement Directorate said in a statement issued on Friday.

The investigation found "the 'misuse' of GST credentials belonging to Indian nationals by Myanmar nationals to facilitate the purchase of raw materials essential for the manufacture of Methamphetamine tablets." The agency further stated that "Additionally, evidence indicates that Indians procured Pseudoephedrine tablets and Caffeine Anhydrous on behalf of Myanmar nationals, enabling the cross-border drug production and trafficking network and laundered money in this process."

This operation uncovered a scheme supporting the supply chain of narcotics manufacturing, with particular effect on the "porous" Indo-Myanmar border regions such as Mizoram. The investigation found financial and smuggling connections across several Indian states, as well as money laundering linked to these activities. "This scheme supported the supply chain of narcotics manufacturing, particularly affecting the 'porous' Indo-Myanmar border regions like Mizoram, with financial and smuggling links spanning multiple Indian states and money laundering through these activities, according to the agency."

During the raids, ED seized cash amounting to Rs 46.7 lakh from certain Hawala operatives and other individuals and froze 21 bank accounts. The case originates from a Mizoram Police FIR concerning the confiscation of 4.72 kg of heroin valued at Rs 1.41 crore from six individuals.