New Delhi, Jul 6 (PTI) The ED has found that an organised syndicate, which operated a Rs 1,500-crore betel nut smuggling ring along the India-Myanmar international border, allegedly used forged GST invoices and routed "illicit" funds through some rural bank accounts in Mizoram via a hawala network.

The central agency said in a statement on Monday that its Guwahati zonal office unearthed the alleged modus operandi after it conducted multi-state searches at 20 premises in Assam, Mizoram, West Bengal and Uttar Pradesh on July 3.

The investigation pertains to a "large, organised syndicate" engaged in smuggling betel nut (areca nut) across the India-Myanmar border and subsequent money laundering.

The ED's case, filed under the Prevention of Money Laundering Act (PMLA), stems from multiple FIRs by the Assam Police and the Directorate of Revenue Intelligence (DRI), another central agency under the Union Finance Ministry.

The ED said the syndicate operated through a network of suppliers predominantly based in Mizoram's Champhai district, facilitators based in Assam, consignees/financiers spread across West Bengal and Uttar Pradesh and an entity in Kolkata that provided invoices (facilitating circular trading).

"The syndicate smuggles foreign-origin areca nut from across the Indo-Myanmar border via the Champhai-“Zokhawthar route, even though Champhai grows none itself," the ED said.

Production data obtained from central and state government agencies established that Champhai, from where the bulk of the consignments were shown to originate, recorded zero domestic production of areca nut during the relevant years, it said.

"This corroborates that the goods were of smuggled, foreign origin routed through the Indo-Myanmar border," the ED said.

The syndicate used "forged" GST invoices, "bogus" supplier and buyer firms and "false" transport papers.

"The proceeds are then layered through buyers in West Bengal and Uttar Pradesh who pay Silchar/Assam hawala operators, who subsequently route the money mostly through Mizoram Rural Bank transit accounts that mask the real depositors before it reaches the Champhai smugglers.

"Finally, large cash withdrawals from those accounts are sent back to the Myanmar suppliers via hawala, completing the laundering cycle," the ED said.

According to the agency, proceeds of crime worth more than Rs 1,500 crore were generated by the syndicate.

The investigators seized diaries, title deeds, property documents, Rs 1.30 crore in cash and froze 33 bank accounts during the searches. PTI NES KVK KVK

Forged GST invoices and hawala routing allegedly enabled a border smuggling and money-laundering network for areca nut trade. An alleged organised syndicate smuggled foreign-origin areca nut across the India-Myanmar border and channelled the proceeds through a laundering network using forged GST invoices, bogus supplier and buyer entities, false transport documents and hawala routes. The alleged operation involved suppliers in Mizoram, facilitators in Assam, consignees and financiers in West Bengal and Uttar Pradesh, and an invoicing entity in Kolkata said to have enabled circular trading. The investigation, conducted under the Prevention of Money Laundering Act, involved multi-state searches and the seizure or freezing of diaries, title deeds, property documents, cash and bank accounts.