Indo-Myanmar drug syndicate ‘misused’ GST IDs, reveals ED

A cross-border drug syndicate spanning India and Myanmar allegedly used GST identities of unsuspecting Indian nationals and proxy firms to procure chemical precursors for methamphetamine production, the Enforcement Directorate has found in its first major money-laundering probe along the Indo-Myanmar border.

The ED, which conducted search operations across Aizawl and Champhai in Mizoram, Sribhumi in Assam’s Karimganj district and Ahmedabad in Gujarat on November 27, uncovered how stolen or misused GST credentials enabled Myanmar-based operatives to source pseudoephedrine tablets and caffeine anhydrous from Indian suppliers.

These chemicals were then smuggled into Myanmar for meth tablet manufacturing and the finished product was pushed back into India through Mizoram.

The money trail, officials said, shows a sophisticated financial network using shell companies, habitual smugglers and hawala operators across several states.

The probe began after Mizoram Police seized 4.724 kg of heroin worth Rs 1.41 crore in 2021 and arrested nine suspects. Financial analysis later revealed linkages between Mizoram firms and Gujarat-based Krishiv Enterprises, which supplied Rs 4.54 crore worth of pseudoephedrine and caffeine anhydrous in 2024–25 to entities allegedly controlled by Henry Lalbiakzinga, Laltluangzela and Benjamin Lalawmpuai.

Investigators found that the procurement was facilitated using GST-linked documentation of Indian nationals, allowing Myanmar-linked handlers to disguise the true end-users of the chemicals.

The network relied heavily on hawala channels, the ED said. Accounts belonging to Assam resident Abu Saleh Saif Uddin showed credits of Rs 11 crore, while those linked to Champhai-based hawala operator Lalrampari reflected inflows of Rs 52.8 crore across Assam, Mizoram, Nagaland, West Bengal, Tripura and Delhi. Several Mizoram firms -- including Bill Enterprises, RK Two Sisters Store, LH Pharmacy and KC Pharmacy -- were found connected to Kolkata-based shell entities such as Mahasin Tradecom.

During Thursday’s searches, ED seized Rs 46.7 lakh in cash, digital devices and account books. Twenty-one bank accounts suspected of holding proceeds of crime have been frozen under the PMLA.

Officials said the illegal precursor supply chain has strengthened meth operations across the border in Myanmar, with Mizoram emerging as a key transit corridor because of its porous terrain.

The agency said further investigation is underway to track additional handlers and financial conduits.