Crypto, Hawala Link: ED Raids Multiple Sites in Mumbai and Gujarat

The Enforcement Directorate has launched a fresh round of searches in a money laundering case involving drug trafficking, targeting around 11 locations in Mumbai and Gujarat. The operation was carried out on Wednesday, October 28, under the Prevention of Money Laundering Act (PMLA), 2002.

The agency's Mumbai Zonal Office-I led the exercise. Its objective was to trace the proceeds of crime and determine whether the money was further routed abroad or concealed.

The alleged mastermind network is headed by Naveen Gurunath Chichkar, along with several others. Investigators say the group sold narcotics smuggled into India from outside the country, including cocaine, hydroponic cannabis, LSD and cannabis-based edibles, and generated illegal income from these sales.

Origin of the investigation

The PMLA case was registered after the Narcotics Control Bureau in Mumbai and the Anti-Narcotics Cell of Navi Mumbai Police seized large quantities of high-grade hydroponic cannabis, cocaine and unaccounted cash from the accused.

Money trail under scrutiny

The ED's investigation has found that Chichkar put a large portion of the illegal earnings into cryptocurrency. It also established that narcotics sale proceeds were handed over to hawala operators, who allegedly paid Chichkar back in USDT or Thai baht.

According to the agency, the accused moved the drug money out of India through both hawala channels and cryptocurrency transactions.

Digital and documentary evidence

Several objectionable materials, digital devices and other evidence were seized during the searches. The ED says this material supports its case of money laundering tied to the sale of narcotic substances.

Further investigation and appropriate legal proceedings in the matter are underway, the agency said.