Rs 74 crore drug money moved to Afghanistan through hawala: ED

New Delhi: The Enforcement Directorate's investigation into an international drug smuggling syndicate based out of Afghanistan, Pakistan and Dubai has revealed that proceeds worth Rs 74 crore generated through the illegal sale of narcotic drugs were transferred to Afghanistan through hawala channels and allegedly used for funding terrorist activities.

Officials said the agency's investigation has also established the generation of Proceeds of Crime (PoC) totalling Rs 89 crore through multiple activities linked to narcotics trafficking, including contraband smuggling, distribution of drug proceeds and hawala operations.

The federal agency has traced Rs 74 crore in hawala transaction was initially identified by the National Investigation Agency (NIA) and were subsequently examined as part of the ED's investigation into the proceeds generated through illegal narcotics activities.

The investigation has brought the movement of drug-generated funds through informal financial channels under the agency's scanner, particularly the transfer of such proceeds outside India through hawala networks.

The ED has found that the illegal sale of narcotic drugs generated substantial proceeds, which were subsequently channelled through hawala operators. Of the total PoC of Rs 89 crore identified during the investigation, Rs 74 crore was allegedly transferred through hawala to Afghanistan for funding terrorist activities.

The agency's findings indicate that the proceeds were not limited to the "direct sale and distribution of narcotics, but also involved a wider financial network comprising contraband smuggling, movement of drug proceeds and hawala transactions."

The ED's investigation has also sought to establish the financial trail of the money generated through the narcotics trade and its subsequent movement through informal channels.

The investigation covers three broad components of the alleged financial activity - smuggling of contraband, distribution of proceeds generated from drugs and hawala operations.

Officials further said the findings also highlight the link being investigated between narcotics-related proceeds and terrorist financing, with the ED examining how money generated from the illegal drug trade was moved through hawala channels and ultimately transferred outside the country.

The agency is continuing its probe into the financial network associated with the proceeds of crime and the movement of funds through hawala channels.

In this case, the ED on September 17 arrested Gaurav Dawar in connection with a case involving large-scale import of drugs (heroin), concealed in semi-processed talc, alongside linked narcotics seizures across Delhi, Punjab, and Haryana. He was arrested under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

Dawar is now under ED custody and being interrogated in the case as the agency seeks more information on it.

ED investigation was initiated on the basis of a First Information Report (FIR) registered by the NIA under the provisions of the Unlawful Activities (Prevention) Act, 1967, Narcotic Drugs and Psychotropic Substances Act, 1985 and Indian Penal Code, 1860, against Harpreet Singh Talwar-- prime accused in the 3,000 kg Mundra Port Heroin seizure case-- and others for the drug smuggling activities.

Earlier, the NIA had filed six charge sheets in the case, wherein the NIA had charged multiple accused for conspiring with an international drug smuggling syndicate based out of Afghanistan, Pakistan and Dubai, operating under the mastermind Vitaysh Koser alias Raju Dubai, a wanted accused, along with Pakistani ISI agents and Afghan nationals.

In this case, multiple rounds of searches under PMLA, 2002 were conducted by the ED between September 15 and September 17.

The agency's Investigation further revealed that Dawar, along with co-accused Talwar, received remuneration in kind and hawala for facilitating smuggling of narcotics consignments sent by the international drug syndicate.

"The remuneration in kind received by the conspirators includes prohibited items like 'Gudangaram Cigarettes’, 'Beetel nut' consignments including dry dates, and perfumes from the mastermind Raju Dubai," it said.

In addition to this, ED said, it has been revealed that Dawar received cash in AED directly from Raju Dubai multiple times when he visited Dubai to facilitate the smuggling.

ED investigation further revealed that the tainted proceeds derived from narcotics trafficking and contraband smuggling were systematically layered and integrated into commercial hospitality ventures, nightclubs, and luxury assets.

As per the agency, Dawar made cash investments in the Delhi based night clubs namely “Playboy Club and White Club,” operated through the entity Newera Feast and Hospitality Pvt Ltd. (NFHPL), along with the co-accused.