ED files chargesheet against 19 entities in Arunachal-Assam liquor smuggling racket

The Enforcement Directorate (ED) has filed a chargesheet against 19 entities in connection with an alleged multi-crore liquor smuggling racket involving the illegal transportation of liquor from Arunachal Pradesh into Assam and other states.

The federal agency said its Guwahati zonal office filed a prosecution complaint before a special Prevention of Money Laundering Act (PMLA) court in Guwahati.

The money laundering investigation stems from 173 FIRs registered by Assam Police at several police stations along the 804-km Assam-Arunachal Pradesh border over the years.

According to the ED, its investigation uncovered an alleged organised and vertically integrated criminal network involved in the clandestine manufacture and large-scale smuggling of liquor from Arunachal Pradesh into Assam.

The agency alleged that the liquor carried labels stating “For Sale in Arunachal Pradesh” but was transported into Assam without valid transit permits or Excise Verification Certificates (EVCs), allegedly to evade the higher excise duty and Value Added Tax (VAT) applicable in Assam.

The ED said Assam Excise authorities seized more than 2.63 lakh litres of allegedly smuggled liquor valued at Rs 52.77 crore in 739 incidents between 2023 and April 2026.

The agency said the seizures represented only a fraction of the total quantity of liquor allegedly smuggled into Assam during the period.

The ED named Sanjay Dewan, Niraj Sharma and Rajan Lohia as the principal accused in the case. It alleged that the three operated a “virtual monopoly” over the liquor trade in Arunachal Pradesh through a complex network of entities involved in liquor warehousing, wholesale distribution and retail sales.

Four warehouse owners, whose premises were allegedly used to store the smuggled liquor, have also been named as accused in the prosecution complaint.

The agency further alleged that statutory liquor licences originally issued to indigenous residents of Arunachal Pradesh were unlawfully taken over without obtaining the mandatory approval of district and excise authorities.

According to the ED, the indigenous licence holders were allegedly used as proxy name-lenders and paid small fixed monthly amounts.

The investigation also found an alleged money laundering and hawala network used to route illicit cash generated through the sale of the liquor in Assam and other states, including Delhi, Jharkhand and Telangana.

The ED further alleged that some warehouses were held under a partnership model to avoid scrutiny related to benami assets.

Further proceedings in the case are underway before the special PMLA court.