Guwahati, July 29: The Directorate of Enforcement (ED), Guwahati Zonal Office, has filed a prosecution complaint under the Prevention of Money Laundering Act (PMLA), 2002, against 19 dreaded accused, including Sanjay Dewan, Niraj Sharma, Rajan Lohia, Shankar Deb and Sameer Mehta, along with 14 bonded warehouse entities, in connection with an alleged liquor smuggling and money laundering racket operating between Arunachal Pradesh and Assam.
According to the ED, the investigation was launched on the basis of 173 FIRs registered by Assam Police across districts along the Assam-Arunachal Pradesh border. The agency alleged that the accused ran an organised network involved in the clandestine manufacture and large-scale smuggling of liquor from Arunachal Pradesh into Assam to evade higher excise duty and Value Added Tax (VAT).
The ED said the smuggled liquor carried labels stating "For sale in Arunachal Pradesh" but was transported into Assam without valid transit permits or Excise Verification Certificates (EVC). It said Assam Excise authorities seized more than 2.63 lakh bulk litres of such liquor, valued at about Rs. 52.77 crore, in 739 incidents between January 2023 and April 2026. According to the agency, these seizures represented only a fraction of the liquor allegedly smuggled into the state.
The agency alleged that Sanjay Dewan, Niraj Sharma and Rajan Lohia operated a virtual monopoly over the liquor trade in Arunachal Pradesh through a network of manufacturing units, bonded warehouses, wholesale businesses and retail outlets.
According to the ED, the accused unlawfully took control of statutory licences issued to local indigenous residents without the required approval from district and excise authorities. It alleged that the licence holders were used as proxy name-lenders for fixed monthly payments, while the accused retained financial control over the businesses. The agency further alleged that dummy directors were appointed in manufacturing units and bonded warehouses, with no real managerial or financial authority.
The ED also alleged that manufacturing units increased their installed capacities without corresponding duty payments, resulting in surplus liquor meant for smuggling.
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According to the agency, the proceeds of crime were laundered through a four-tier mechanism involving wholesale liquor entities, bonded warehouses and manufacturing units before being integrated as "profit shares" and untainted income in personal and Hindu Undivided Family (HUF) accounts and invested in movable and immovable properties.
The ED said banking analysis showed that nine wholesale entities received cash deposits of about Rs. 1,047.93 crore, which it has quantified as proceeds of crime.
During searches in Arunachal Pradesh and Assam, the ED said it recovered digital and physical records. It alleged that forensic examination of seized mobile phones revealed an inter-state hawala network that used coded terms such as "Books", "Box", "KG" and "Bag" to denote cash transactions. The agency also alleged that images of low-denomination currency notes and their serial numbers were exchanged as authentication tokens for hawala transactions involving proceeds from illegal liquor sales from Guwahati, Delhi, Ranchi and Hyderabad to Arunachal Pradesh.
The ED said it seized unexplained cash of Rs. 52.10 lakh during the searches. It also froze bank balances and fixed deposits worth Rs. 26.59 crore under the PMLA. According to the agency, the Adjudicating Authority (PMLA), New Delhi, has confirmed the retention of these assets.
The agency further said its findings were corroborated by previous Income-Tax Department findings, in which the principal accused had made voluntary disclosures of undisclosed income. Further investigation is in progress.
