A major smuggling and tax-evasion network trafficking banned Indonesian areca nuts into India has been exposed in Maharashtra, where authorities seized more than 100 trucks loaded with the contraband used in pan masala production.
According to the Central Goods and Services Tax (CGST) department, the seized areca nuts had been chemically polished with carcinogenic substances to make them resemble higher-grade Indian nuts. Officials warned that widespread circulation of the consignment could have triggered a large-scale public health crisis due to its proven cancer risks.
The ongoing investigation indicates that the racket may be far larger than the intercepted haul. Authorities believe hundreds of similar shipments have already reached a major Delhi-based distributor, Krishna Traders, over the past month. GST registrations linked to the supply chain trace back to two Karnataka-based firms — NN Traders and SRS Traders — whose proprietors appear to be economically vulnerable individuals likely used as dummy operators.
Investigators have identified two suspected masterminds: Kader Khan of Kasargod in Kerala and Sameer Khan of Mangaluru in Karnataka.
The seized consignment weighed roughly 2,500 tonnes and arrived at the Raigad rail corridor from Mangaluru on November 26 before being intercepted. Tracking data suggests the nuts were smuggled via southern ports, transported to Mangaluru for chemical polishing, then diverted by rail to Maharashtra and further distributed by road to Delhi, NCR and Uttar Pradesh.
Indonesia-origin areca nuts are banned for sale, distribution or use in products such as pan masala and gutkha. Enforcement bodies — including Customs, DRI and FSSAI — restrict their entry due to extreme health hazards. The current import duty on areca nuts under standard tariff classification is 100% customs duty plus 5% IGST, totalling 105%, and authorities suspect forged transport documents and bogus GST registrations were used to generate fake invoices and evade duties running into hundreds of crores.
Alongside CGST, the Directorate of Revenue Intelligence is expected to launch parallel action, as the consignment is suspected to be of foreign origin and part of a wider organised crime network. Officials stressed that none of the seized produce will be allowed to enter markets under any circumstances due to grave public-health implications.
