ED PMLA searches across Maharashtra and Gujarat target alleged narcotics syndicate

The Enforcement Directorate (ED) said on Friday that search operations took place at 11 sites in Maharashtra and Gujarat. The action, under the Prevention of Money Laundering Act (PMLA), targeted an alleged international narcotics syndicate. The agency said the effort aimed to break the network and trace suspected proceeds of crime from drug sales.

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According to the ED, its Mumbai Zonal Unit carried out the searches on Wednesday in Mumbai and Navi Mumbai. The raids also covered Surat and Bhavnagar in Gujarat. Officials said some locations involved crypto traders, as the agency looked for suspected money trails connected to narcotics transactions.

ED PMLA searches linked to narcotics syndicate

The ED said officials seized digital devices and other materials during the operations. The agency listed high-end smartphones, laptops, and internal storage media among the items recovered. It also said teams collected commercial books of accounts, financial ledgers, and investment records that could support the money laundering probe.

The agency alleged the syndicate was headed by two individuals, Navin Chichkar and Dhiraj Chichkar, along with associates. The ED said the searches formed part of efforts to identify assets and channels used to handle proceeds from the alleged drug trade. Officials said the case focused on both the network structure and funding routes.

ED probe after NCB case under NDPS Act

The money laundering investigation followed a complaint by the Narcotics Control Bureau (NCB), Mumbai, under provisions of the NDPS Act, the ED said. The NCB case came after seizures in Mumbai and Navi Mumbai. The ED noted that the recoveries included high-grade hydroponic cannabis (ganja), cocaine, and unaccounted cash.

Investigators said the accused were linked to a well-established international set-up for drug sales. The ED said the network dealt in cocaine, hydroponic cannabis, LSD, and cannabis edibles. Officials added that these drugs were largely sourced from outside India, indicating cross-border supply and distribution links.

ED finds alleged laundering via cash, forex, and crypto traders

The ED said drug proceeds were mainly received in cash and then inserted into the financial system. The agency alleged the funds were layered to make them appear as lawful earnings. It said cash from narcotics sales was routed and converted into foreign currencies, including US dollar and Thai baht.

The ED also alleged some cash was directed into selected legitimate businesses to convert it into clean funds. Separately, searches linked to crypto traders found information on crypto wallets and assets. The agency said these appeared prima facie connected to proceeds of crime from narcotics activities.

The ED said suspected individuals operated multiple crypto trading accounts from outside India. Officials said the crypto details were being checked to find linked accounts and study transaction histories. The agency said it also aimed to secure suspected proceeds of crime, and added that further investigation was under progress.

With inputs from PTI