Daijiworld Media Network – Panaji
Panaji, Jul 23: The Enforcement Directorate (ED) has arrested a Dubai-based Indian national in connection with an alleged cross-border crypto-hawala network used to launder proceeds from narcotics trafficking for international drug cartels, the agency said on Thursday.
The accused, identified as Nihal VN, was produced before a Special Prevention of Money Laundering Act (PMLA) Court in Goa, which remanded him to ED custody for seven days till July 28.
According to the ED, Nihal acted as a key financial conduit for drug syndicates operating across multiple continents. The agency alleged that he converted cash generated from narcotics sales in India into cryptocurrencies and foreign currency.
The ED said the laundered funds were allegedly transferred to suppliers in Brazil and Thailand to finance the procurement of high-grade narcotics and synthetic drugs, which were later smuggled into India.
Investigators have identified multiple cryptocurrency wallets, offshore bank accounts and domestic shell entities that were allegedly used to facilitate the money laundering network.
The case is based on an FIR registered by the Anti-Narcotics Cell of the Goa Police under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985.
According to the ED, the FIR pertains to an inter-state drug trafficking syndicate allegedly involved in the business-to-business distribution of narcotics across Goa, Himachal Pradesh, Maharashtra, Karnataka, Tamil Nadu, Odisha and Kerala.
As part of the investigation, the ED had earlier conducted searches at 26 locations across Goa, Maharashtra, Kerala, Tamil Nadu, Karnataka, Odisha and Delhi, during which it seized around Rs 3 crore in cash, besides documents and digital devices.
The agency said the main accused in the case, Madhupan SS, was arrested on January 17 and remains in judicial custody.
The ED said further investigations are underway to identify all beneficiaries and facilitators linked to the alleged network and to trace assets suspected to have been generated through the illegal activities.