ED charges 19 in Assam-Arunachal liquor smuggling, ₹1,047 crore laundered
Synopsis
The ED has charged 19 accused — including five individuals and 14 bonded warehouse firms — in a cross-border liquor smuggling and money laundering operation between Arunachal Pradesh and Assam. Banking trails show ₹1,047.93 crore in cash deposits classified as proceeds of crime, routed through wholesale entities, warehouses, and ultimately into personal accounts — all structured to stay below regulatory reporting thresholds.
Key Takeaways
The ED filed a PMLA prosecution complaint on 29 July against 19 accused , including 5 individuals and 14 bonded warehouse entities .
Principal accused named: Sanjay Dewan , Niraj Sharma , Rajan Lohia , Shankar Deb , and Sameer Mehta .
Nine wholesale entities received cash deposits of approximately ₹1,047.93 crore , identified as proceeds of crime.
Assam Excise authorities seized over 2.63 lakh bulk litres of smuggled liquor worth ₹52.77 crore in 739 cases between January 2023 and April 2026 .
The case stems from 173 FIRs registered by Assam Police along the Assam-Arunachal Pradesh border.
The complaint has been filed before the Special PMLA Court ; proceedings are ongoing.
The Directorate of Enforcement (ED) on Wednesday, 29 July filed a prosecution complaint under the Prevention of Money Laundering Act (PMLA), 2002, naming 19 accused — five individuals and 14 bonded warehouse entities — in connection with an alleged large-scale liquor smuggling and money laundering racket spanning the Assam-Arunachal Pradesh border. The case involves proceeds of crime quantified at approximately ₹1,047.93 crore, according to the agency's Guwahati Zonal Office.
Key Accused and Charges
The prosecution complaint, filed before the Special PMLA Court, names Sanjay Dewan, Niraj Sharma, Rajan Lohia, Shankar Deb, and Sameer Mehta as principal accused. The ED alleged that Dewan, Sharma, and Lohia had established near-complete control over Arunachal Pradesh's liquor trade through an elaborate network of manufacturing units, bonded warehouses, wholesale distributors, and retail outlets.
The investigation was initiated on the basis of 173 First Information Reports (FIRs) registered by Assam Police across districts along the inter-state border.
How the Racket Operated
According to the agency, liquor was manufactured in Arunachal Pradesh and smuggled into Assam without mandatory transit permits or Excise Verification Certificates (EVCs). Bottles reportedly carried labels stating 'For Sale in Arunachal Pradesh' but were illegally diverted into Assam to circumvent the state's significantly higher excise duty and Value Added Tax (VAT).
The ED further alleged that statutory liquor licences originally issued to indigenous residents of Arunachal Pradesh were illegally taken over without mandatory approvals from district or excise authorities. The original licence holders were allegedly reduced to proxy name-lenders receiving fixed monthly payments, while the accused retained full financial and operational control through undisclosed agreements. Several manufacturing units and warehousing companies also reportedly appointed dummy directors who signed blank cheques and acted solely on the principal accused's instructions.
Scale of Seizures
Assam Excise authorities seized more than 2.63 lakh bulk litres of such liquor — valued at approximately ₹52.77 crore — across 739 separate cases between January 2023 and April 2026. The ED noted that these seizures represented only a fraction of the total quantity allegedly smuggled into the state over the period.
The Money Laundering Trail
Banking analysis conducted by the ED found that nine wholesale entities received cash deposits aggregating around ₹1,047.93 crore, which the agency classified as proceeds of crime. These funds were subsequently routed via RTGS and NEFT to the 14 bonded warehouse entities before being consolidated at the manufacturing level and presented as legitimate business profits.
The laundered money was allegedly diverted into personal and Hindu Undivided Family (HUF) accounts and invested in movable and immovable assets. To evade regulatory scrutiny, thousands of invoices were reportedly split below ₹2 lakh, while cash deposits were structured below the ₹10 lakh reporting threshold — a classic structuring technique designed to avoid mandatory bank disclosures.
What Happens Next
The prosecution complaint is now before the Special PMLA Court and further proceedings are underway. This case is among the largest money laundering prosecutions linked to inter-state excise evasion in northeast India in recent years, and is likely to draw scrutiny over the adequacy of border excise enforcement mechanisms between the two states.
Point of View
047.93 crore figure is striking, but the more consequential detail is structural: statutory licences meant for indigenous Arunachal residents were allegedly captured wholesale, turning a welfare instrument into a laundering vehicle. That points to a regulatory gap far deeper than excise evasion alone. The 739 seizure cases over three years suggest enforcement was neither absent nor effective — a pattern of partial interdiction that allowed the racket to persist and scale. The real accountability question is not just for the accused, but for the inter-state excise coordination framework that apparently failed to flag ₹1,047 crore in suspicious cash flows until a federal agency intervened.
NationPress
29 Jul 2026
Frequently Asked Questions
What is the ED's case against the 19 accused in the Assam-Arunachal liquor racket?
The ED has filed a prosecution complaint under the PMLA, 2002, alleging that 19 accused — five individuals and 14 bonded warehouse entities — ran a large-scale liquor smuggling and money laundering operation between Arunachal Pradesh and Assam. The agency identified approximately ₹1,047.93 crore in cash deposits as proceeds of crime.
Who are the principal accused named in the ED complaint?
The five key individuals named are Sanjay Dewan, Niraj Sharma, Rajan Lohia, Shankar Deb, and Sameer Mehta. The ED alleged that Dewan, Sharma, and Lohia exercised near-complete control over Arunachal Pradesh's liquor trade through manufacturing units, bonded warehouses, and retail networks.
How was the liquor smuggled from Arunachal Pradesh into Assam?
Liquor manufactured in Arunachal Pradesh was allegedly transported into Assam without mandatory transit permits or Excise Verification Certificates. Bottles labelled 'For Sale in Arunachal Pradesh' were diverted to Assam to evade the state's higher excise duty and VAT.
How much liquor was seized by Assam Excise authorities?
Assam Excise authorities seized more than 2.63 lakh bulk litres of smuggled liquor, valued at approximately ₹52.77 crore, across 739 separate cases between January 2023 and April 2026. The ED noted these seizures were only a fraction of the total quantity allegedly smuggled.
How was the money laundered in this case?
According to the ED, unaccounted cash from illegal liquor sales was deposited into wholesale firms' accounts — allegedly via hawala channels — and then transferred through RTGS and NEFT to 14 bonded warehouse entities. The funds were ultimately consolidated at the manufacturing level and presented as legitimate profits, with the final proceeds diverted into personal and HUF accounts and invested in assets.
