The Enforcement Directorate has widened its investigation into an alleged cross-border areca nut smuggling and money-laundering network, with several GST and Central GST officials now reportedly under scrutiny.
The Guwahati Zonal Office is examining whether government officials helped facilitate the movement of allegedly smuggled consignments using forged invoices, fake e-way bills and fabricated transit documents.
The investigation covers a wider network stretching from Southeast Asia into India and across several states.
Investigators are also tracing the financial trail behind what has been politically described as the alleged “Abhishek Tax” or “Goonda Tax” network in West Bengal.
Those allegations remain unproven and no court has established the involvement of the individuals or officials now being examined.
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GST and CGST Officials Face Scrutiny
The latest phase of the investigation is examining whether tax officials played any role in allowing allegedly illegal consignments to move through the transport and taxation system.
The identities of the GST and CGST officials reportedly under examination have not been publicly disclosed.
Investigators are focusing on documents allegedly used to make foreign-origin areca nuts appear legitimate while they were transported across state borders.
These reportedly included invoices, e-way bills and other transit records.
An e-way bill is an electronic document generally required when goods above a specified value are transported from one place to another.
It contains information about the supplier, buyer, goods and vehicle carrying the shipment.
If false companies or fabricated invoices are inserted into that system, illegally sourced goods can potentially be presented as legitimate domestic consignments.
Investigators are now examining whether such documents were used systematically and whether officials knowingly helped the network.
Smuggling Route Stretched From Myanmar to Several States
The alleged network involved foreign-origin areca nuts from countries including Indonesia and Thailand.
Investigators say consignments were brought into Mizoram through Myanmar before being moved into Assam and West Bengal.
From there, the goods were allegedly transported to other states including Bihar, Uttar Pradesh and Maharashtra.
Earlier ED-linked investigations alleged that local residents were used as front proprietors of firms through which large financial transactions were routed.
The goods were then allegedly supplied to businesses including gutka and pan masala manufacturers.
In October, the ED searched 16 locations across Assam and West Bengal connected to the investigation.
Premises linked to transporter Dhiraj Ghosh, Binoy Barman, Sandeep Baid, businessman Navratan Baid and two Guwahati-based firms were among those searched.
The investigation has now expanded beyond the businesses and transport operators initially targeted.
ED Earlier Traced More Than ₹970 Crore
The financial scale of the investigation was already significant before the latest expansion.
In an official statement issued in June, the ED said analysis of bank accounts showed alleged proceeds of crime exceeding ₹970 crore moving through multiple accounts between 2013 and 2025.
The agency also described a system in which local facilitators allegedly received commissions for procurement, transportation, escorting consignments and customs-related activities.
According to the ED, payments ranging from ₹20 lakh to more than ₹1 crore were made in some cases in connection with obtaining the release of seized consignments from Customs authorities.
Investigators also alleged that unrelated Bills of Entry were presented in some cases to portray smuggled areca nuts as legally imported goods.
A Bill of Entry is a customs document used to declare imported goods.
Using an unrelated document could potentially make illegal goods appear to have passed through legitimate customs procedures.
The ED said documents, property records, business records and electronic devices were seized during earlier searches.
Alleged Payment Network Also Under Investigation
Another part of the investigation concerns claims that transporters paid money to allow trucks carrying consignments to pass through particular routes.
Investigators are examining allegations that a Siliguri-based network collected monthly payments from truck operators.
In return, the operators allegedly received tokens that were supposed to ensure uninterrupted passage through parts of Assam, West Bengal and Bihar.
This alleged payment mechanism has been referred to in political debate as “Abhishek Tax”.
That label has been used by political leaders and should not be treated as an established description of criminal liability.
The ED’s current investigation is focused on tracing the money, identifying companies and intermediaries involved, and determining whether public officials helped the alleged network function.
Moneycontrol reported that the wider syndicate under investigation involved consignments valued at around ₹1,500 crore and was connected to more than 11 cases.
The agency has not publicly named the GST or CGST officers now reportedly under examination.
The investigation remains ongoing, and allegations against individuals or officials will require verification through the legal process.
What this means for you:
The case shows how fake invoices and e-way bills can potentially turn a smuggling operation into what appears to be a legitimate supply chain. For businesses, verifying suppliers, GST records and transport documents is critical when dealing with high-risk commodities.
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