₹14 crore areca nut smuggling exposed in Kasaragod; fake Badiyadukka firm under probe

Kanhangad: GST Enforcement Intelligence officials have uncovered a large-scale paddy smuggling operation in Kasaragod, involving a non-existent company in Badiyadukka. The accused, a truck operator, had allegedly smuggled areca nut 14 times in a month before being caught during a 15th attempt. The total value of the smuggled goods is estimated at around ₹5 crore based on the bills recovered during the investigation.

Officials seized areca nuts worth ₹1 crore during the latest operation. Preliminary calculations suggest that previous consignments may have been of similar value, raising suspicions that the total smuggled amount could exceed ₹14 crore.

According to the investigation, the operation involved hiring interstate workers who were later provided with PAN cards under the name of the fake establishment. Goods were transferred under the company’s name for documentation purposes, but no sales or taxes were recorded. Truck drivers presented invoices and company documents during inspections, concealing the fraudulent nature of the transactions.

The racket has reportedly operated under high-level pressure, with sources indicating that political contacts attempted to influence the release of seized consignments. GST officials, however, continued their probe undeterred, verifying that the Badiyadukka company existed only on paper. Further inquiries revealed that the purported buyer in New Delhi was also a non-existent entity.

The PAN card owner linked to the fake company is now under investigation. The seized areca nut and truck are expected to be confiscated by the government after six months if no legitimate claimants come forward. Following government procedures, the goods will then be auctioned. Criminal investigations into the smuggling gang are ongoing, with cases being filed with local police authorities.

The areca nut was directly procured from farmers in northeastern Kasaragod villages, such as Badiyadukka, known for high-quality produce. Each consignment, weighing 20–25 tonnes, was transported to Malappuram before being shipped to Gujarat for processing and sale. The scheme reportedly allowed operators to earn substantial profits while evading taxes and government regulations.