The ministerial-level meeting between Arunachal Pradesh and Assam, which focused on strengthening interstate cooperation against excise-related challenges, assumes significance against the backdrop of the Enforcement Directorate (ED) raids that exposed an alleged interstate liquor smuggling network earlier this year.

The meeting was important, given the issues of inadequate enforcement, revenue loss, and illegal trade that both governments have had to confront. Senior officials from the Finance and Excise Departments of both states participated in the deliberations.

Deputy Chief Minister Chowna Mein stressed the need for close coordination between neighbouring states to address governance challenges, as discussions focused on strengthening cooperation in excise management. Revenue mobilisation and enhancement of state own revenue (SOR) were among the key agenda items, while both states discussed measures to prevent illicit liquor trade and smuggling.

Officials also deliberated on developing mutually beneficial excise policies. Both sides agreed on the importance of regular dialogue, periodic review meetings, and coordinated action plans, reaffirming their commitment to stronger institutional partnerships and transparent excise management.

In April, the Enforcement Directorate’s Guwahati zonal office conducted raids at nine locations across Arunachal. The raids covered Itanagar, Naharlagun, Seppa, Ziro, Daporijo, Namsai, and Roing, targeting wholesale liquor sellers. The investigation was launched under the Prevention of Money Laundering Act, 2002, following multiple FIRs registered by the Assam Police.

The ED alleged that three kingpins controlled a large liquor-smuggling network through dummy licences issued in the names of local residents. Investigators found that 51% to 90% of credits in wholesale accounts consisted of unexplained cash deposits, with invoice-splitting below Rs 2 lakh allegedly used to avoid scrutiny. During the raids, cash and documents were seized, including Excise Department seals that were allegedly used to forge transport permits. The agency also alleged that liquor meant for Arunachal was diverted to Assam and other states.

Therefore, the recent meeting was significant as both states seek closer cooperation in excise management and border enforcement to address challenges that transcend state boundaries.