6 arrested, over 1,400 bank accounts frozen in Manipur, Mizoram as ED busts cross-border ‘narco-hawala’ scam

The Enforcement Directorate searched locations in Manipur and Mizoram and froze 1,424 bank accounts under Section 17(1A) of the Prevention of Money Laundering Act. It arrested six people, three in each state, under Section 19. The accused were not publicly identified, and they were to be produced before special PMLA courts.

The alleged network linked drug trafficking with money transfers. Investigators connected three cases involving heroin, methamphetamine and brown sugar to one system. The accounts allegedly belonged to drug operators, mule-account holders and beneficiary-account holders. The network moved drugs from Myanmar into India and sent sale proceeds back to Myanmar-based suppliers.

The action followed searches on October 23 by ED offices in Aizawl and Imphal. The NCB and Mizoram Police conducted parallel operations. The cases began with NDPS Act seizures between March 2025 and July 2026, exposing a wider cross-border supply and payment structure.

A narco-hawala network is a linked system that handles both narcotics and the money generated by selling them. “Narco” refers to the drug trade, while “hawala” refers to informal or indirect value transfers. The purpose is to move proceeds without making the supplier and the original drug sale easy to trace.

The article describes cash collected from drug sales in India and sent back toward Myanmar. In the Zenngaihniang case, ₹31.43 lakh was seized at Churachandpur. ED said it was drug-sale money collected for remittance to suppliers in Myanmar. Bank accounts allegedly acted as mule or beneficiary accounts within the wider system.

The investigation matters because financial records can connect separate drug seizures and people. ED said three money-laundering cases exposed one ecosystem. Freezing accounts can restrict access to suspected proceeds and help investigators trace operators, carriers and recipients, while the arrested people face proceedings under the PMLA.

The operation was large financially and geographically. ED froze 1,424 bank accounts in Manipur and Mizoram. The Northeast shares a 1,643-kilometre porous border with Myanmar, which the article identifies as a major land corridor for Golden Triangle drugs. The alleged route connected border towns with markets across India and Bangladesh.

The three underlying cases involved 4.722 kilograms of heroin, 49.101 kilograms of methamphetamine tablets and 40 grams of heroin, plus 2.413 kilograms of brown sugar and ₹31.43 lakh. ED also traced about 32 tonnes of Caffeine Anhydrous in 15 consignments and 10 tonnes of Aluminium Chloride Anhydrous sent by Krishiv Enterprises.

These figures show the alleged system had several linked parts: chemicals moving toward Myanmar and finished drugs moving into India. The cases were uncovered between March 2025 and July 2026. Six arrests and account freezes now target the financial and logistical structure behind that route.

The alleged route worked in two directions. Heroin, brown sugar and methamphetamine tablets entered from Myanmar through the Champhai-Zokhawthar sector of Mizoram. They were moved through border areas, Aizawl, Vairengte and onward routes leading to Assam, Tripura, Bangladesh and other parts of India.

At Zokhawthar, drugs were carried across the Tiau river and staged at Champhai. They then travelled along the Champhai-Aizawl road and NH-06A. Myanmar-based organisers allegedly hired local carriers, who used soap cases, taxis, motorcycles, truck convoys and escort vehicles. One methamphetamine consignment was seized near Seling on NH-06A.

Money travelled back toward the border after drugs were sold. ED said cash collected at Churachandpur was intended for suppliers in Myanmar. The agency described the border trade as a “two-way street”: chemicals moved from India into Myanmar, while finished drugs and their proceeds moved through India and back toward Myanmar.

Myanmar-based suppliers and organisers formed the cross-border source and command side of the alleged system. They supplied heroin, brown sugar and methamphetamine, then hired local carriers to move the drugs into India. ED linked the proceeds to payments sent back to suppliers in Myanmar.

Local carriers transported consignments using soap cases, taxis, motorcycles and truck convoys with escort vehicles. Mule-account holders allegedly provided accounts used to receive or move money, while beneficiary account holders were linked to the accounts receiving the value. The article does not identify these account holders individually.

Chemical suppliers operated in the other direction. ED said Krishiv Enterprises sent caffeine and aluminium chloride to small pharmacies and a general store in Aizawl and nearby border areas. Those businesses had no manufacturing or processing facilities, according to ED. Investigators said the chemicals were moved into Myanmar, where caffeine helped bulk and cut methamphetamine into Yaba tablets.

The immediate consequence was enforcement action against both people and financial channels. ED arrested three people in Mizoram and three in Manipur under Section 19 of the PMLA. It froze 1,424 accounts under Section 17(1A), restricting the accounts while investigators examine their alleged links to drug proceeds and transfers.

The action may make it harder for the alleged network to access accounts or move money through the identified channels. Searches also gave investigators records from three money-laundering cases. Those records helped connect drug seizures, carriers, chemical movements and remittances to a single alleged ecosystem.

The six accused were to be produced before special courts under the PMLA. The article does not report convictions, permanent confiscation or the final status of the frozen accounts. Further proceedings would determine how the accused and account holders are treated and whether the alleged links are established in court.

Drug trafficking produces cash that must reach suppliers and other participants. A hawala or laundering system helps move value between people and places without requiring every participant to carry or directly transfer the same cash. It can also separate the visible drug sale from the person who ultimately receives the proceeds.

In this case, ED said money collected from drug sales in India was sent toward Myanmar. The Zenngaihniang case included ₹31.43 lakh that investigators described as sale proceeds intended for Myanmar suppliers. The agency also froze accounts allegedly belonging to operators, mule-account holders and beneficiaries, showing how financial channels formed part of the alleged network.

Banks and financial records are important because they preserve links between accounts, transactions and people. Investigators can compare those records with drug seizures, phone or transport evidence and business documents. Here, three NDPS-based cases helped ED identify one alleged narco-hawala ecosystem and trace its money movement.