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.

The prosecution 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.

According to the ED, liquor meant ‘For sale in Arunachal Pradesh’ was allegedly diverted into Assam without valid transit permits or excise verification certificates, resulting in the alleged evasion of excise duty and VAT. 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.

While there is a need for tighter monitoring of bonded warehouses, excise licences, interstate liquor movement and financial transactions, the question is how long the authorities in Assam and Arunachal ignored the warning signs before such large-scale irregularities went undetected. There are questions that need to be asked, and the scope of the investigation has to be broadened by the police.