The Directorate of Revenue Intelligence (DRI) on 21 May 2025 announced the dismantling of a large-scale e-cigarette smuggling racket, seizing nearly 3,00,000 electronic cigarettes and vapes valued at over ₹120 crore in coordinated operations across multiple ports, airports, and Inland Container Depots (ICDs) in Maharashtra, Gujarat, Delhi, and West Bengal. The contraband was found to have been sourced exclusively from China in every intercepted consignment.

How the Smuggling Network Operated

Acting on specific intelligence, DRI officers identified and tracked multiple suspicious import consignments that had been mis-declared to evade customs scrutiny, according to the Ministry of Finance. Detailed examination revealed that the prohibited e-cigarettes were concealed within shipments falsely labelled as 'Furniture' and 'Metal Chair Parts' — a deliberate misdeclaration designed to bypass regulatory checks at border entry points.

The seized devices spanned a wide range of brands, flavours, and specifications, indicating a well-organised supply chain catering to retail distribution across multiple Indian states.

Why E-Cigarettes Are Banned in India

Electronic cigarettes and all Electronic Nicotine Delivery Systems (ENDS) are prohibited in India under the Prohibition of Electronic Cigarettes (Production, Manufacture, Import, Export, Transport, Sale, Distribution, Storage and Advertisement) Act, 2019. The legislation was enacted on public health grounds to shield citizens — particularly young people — from nicotine addiction and associated health risks. Despite the ban, demand for vaping products has persisted, creating a lucrative grey market that smuggling networks have moved to exploit.

Pattern of Large-Scale Customs Evasion

This bust is the latest in a series of high-profile DRI enforcement actions. Last month, the agency dismantled a sophisticated gold smuggling syndicate at Chhatrapati Shivaji Maharaj International (CSMI) Airport in Mumbai under an operation codenamed 'Operation Golden Drop'. In that case, officers seized 3 kg of foreign-origin gold valued at approximately ₹4.8 crore and arrested one accused. The gold dust had been converted into wax form and concealed inside specially designed egg-shaped capsules, which transit passengers allegedly ingested to carry the contraband into India. A cleaning staff member employed at a food outlet within the airport premises was also implicated for allegedly facilitating the removal and delivery of the smuggled gold outside the facility.

Notably, the scale and sophistication of both operations — involving concealment techniques, multi-state networks, and insider facilitation — point to organised criminal syndicates with considerable logistical resources, rather than opportunistic individual smuggling.

Impact and What Comes Next

The ₹120 crore vape seizure is among the largest single-enforcement actions against ENDS smuggling since the 2019 ban came into force. Investigations are ongoing, and further arrests are expected as DRI traces the domestic distribution network linked to the intercepted consignments. Customs authorities have signalled continued surveillance at major entry points, particularly for cargo mis-declared under industrial or household goods categories.