ED Names Abub Ahmed Mazumder in Alleged Rs. 1,500 Crore Supari Money Laundering Probe

The Directorate of Enforcement (ED) has launched a major money laundering investigation into an alleged cross-border betel nut smuggling network, carrying out searches at 20 locations across Assam, Mizoram, West Bengal and Uttar Pradesh. The agency claims the syndicate generated more than Rs. 1,500 crore in proceeds of crime through the illegal import and sale of foreign-origin areca nut, commonly known as Burmese supari.

The searches were conducted on 3 July under the Prevention of Money Laundering Act (PMLA), 2002. According to the ED, the case is based on multiple FIRs registered in Assam relating to the alleged smuggling of areca nut and evasion of customs duty. The investigation also draws on findings of the Directorate of Revenue Intelligence (DRI), which had earlier seized 655.32 metric tonnes of areca nut following directions from the Gauhati High Court.

Among those named by the ED is Silchar-based businessman Abub Ahmed Mazumder, whom the agency described as one of the key facilitators of the alleged syndicate. The ED has also named several suppliers in Mizoram, traders in Assam, buyers in West Bengal and Uttar Pradesh, an invoice provider in Kolkata and a logistics company in Guwahati as part of its investigation.

The latest development is linked to a case that dates back to 2022. In March that year, Cachar Police arrested Abub Ahmed Mazumder during its crackdown on an alleged Burmese betel nut smuggling network. At the time, police had described him as the alleged mastermind of the racket. The ED’s current investigation expands on those earlier allegations by examining whether the money generated through the alleged smuggling operation was subsequently laundered through bank accounts, shell firms and hawala channels.

According to the ED, the syndicate allegedly smuggled areca nut from Myanmar into India through the Champhai-Zokhawthar route in Mizoram. The agency said the goods were then passed off as locally sourced using forged GST invoices, bogus supplier and buyer firms and false transport documents. The proceeds were allegedly routed through multiple bank accounts and hawala operators before being transferred back to the alleged smugglers.

The ED further stated that official production records showed Champhai district had no domestic areca nut production during the relevant period, supporting its claim that consignments shown as originating from the district were of foreign origin.

During the searches, the agency said it seized trading records, property documents, electronic devices and Rs. 1.30 crore in unexplained cash. It also froze 33 bank accounts allegedly linked to the network. Investigators further alleged that proceeds of crime had been invested in villas, high-rise buildings and other properties located in Champhai, Silchar, Guwahati, Nabadwip, Falakata, Kolkata and Varanasi.

The ED said further investigation is in progress.