The Enforcement Directorate (ED) has filed a prosecution complaint under the Prevention of Money Laundering Act (PMLA), alleging a large-scale liquor smuggling and money laundering network operating across Arunachal Pradesh and Assam. This move comes after a thorough investigation into the alleged racket, which has been linked to the evasion of excise duty and VAT.
The ED’s complaint is based on 173 FIRs registered by the Assam Police, indicating that the alleged racket was not an isolated incident but part of a sustained and widespread operation. The sheer number of FIRs suggests that the authorities had been aware of the issue for some time, raising questions about the delay in taking action.
According to the ED, liquor meant ‘For sale in Arunachal Pradesh’ was allegedly diverted into Assam without valid transit permits or excise verification certificates. The ED further alleges that a handful of principal accused exercised operational and financial control over manufacturing units, bonded warehouses and wholesale liquor businesses, pointing to an organised rather than sporadic operation.
The alleged racket has raised concerns about the lack of monitoring and regulation in the liquor industry. There is a need for tighter monitoring of bonded warehouses, excise licences, interstate liquor movement and financial transactions to prevent such irregularities in the future.
The ED’s complaint has also raised questions about how long the authorities in Assam and Arunachal ignored the warning signs before such large-scale irregularities went undetected. The scope of the investigation has to be broadened by the police to ensure that all those involved in the alleged racket are brought to justice.
