ED Raids 11 Locations in Mumbai, Surat And Bhavnagar, Uncovers Crypto and Hawala Money Laundering in Global Narcotics Network
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Summarized by AI; it may make mistakes. Check important info
The Enforcement Directorate (ED) has expanded its money laundering probe into an international narcotics syndicate, raiding 11 locations across Maharashtra and Gujarat, including key premises in Surat and Bhavnagar.
Officers from ED's Mumbai Zonal Office-I executed search operations under the Prevention of Money Laundering Act (PMLA), 2002. The raids targeted financial handlers and crypto traders across Mumbai, Navi Mumbai, Surat, and Bhavnagar involved in laundering cash generated from an illicit drug distribution network headed by Navin Chichkar and Dhiraj Chichkar.
Hawala and Crypto Wallets Used to Layer Drug Cash
Investigators revealed that cash proceeds from street-level narcotics sales were funneled into hawala networks and converted into foreign currencies, including US dollars and Thai Baht. The syndicate used these funds abroad while simultaneously investing cash into domestic businesses to project illicit earnings as legitimate income.
Searches targeting crypto traders in the region uncovered digital wallets and assets directly linked to the drug cartel. ED officials established that operatives managed multiple overseas cryptocurrency trading accounts, converting drug money into digital tokens like USDT to evade detection. Forensic teams are currently examining transaction histories and digital storage devices to trace and freeze these accounts.
Origin of the International Syndicate Probe
The ED initiated its money laundering investigation following a complaint filed by the Narcotics Control Bureau (NCB), Mumbai, under the NDPS Act. The initial NCB crackdown exposed a syndicate importing high-grade hydroponic cannabis (ganja), cocaine, LSD, and cannabis edibles, primarily smuggled into India from foreign locations.
During the multi-state search operations, ED officers seized high-end smartphones, laptops, internal storage drives, commercial books of accounts, financial ledgers, and investment records. Probes into linked hawala operators and overseas financial channels in Gujarat and Maharashtra are ongoing.
