Nightclubs, Cash and Contraband: Inside the ED’s Rs 89 Crore Drug Money Probe
The Enforcement Directorate has uncovered evidence that Rs 74 crore in proceeds from an international drug smuggling operation was funnelled to Afghanistan through hawala networks and allegedly used to finance terrorist activities, officials said Wednesday.
The trail emerged from the agency’s investigation into a drug syndicate operating out of Afghanistan, Pakistan and Dubai, which the ED said has generated total Proceeds of Crime worth Rs 89 crore through narcotics trafficking, contraband smuggling and hawala operations. Of that amount, Rs 74 crore was allegedly moved to Afghanistan through informal hawala channels for terror financing — a lead that was first flagged by the National Investigation Agency before being taken up by the ED.
A financial trail beyond drug sales
According to the ED, the proceeds were not confined to the direct sale and distribution of narcotics but flowed through a broader financial network spanning contraband smuggling, distribution of drug proceeds, and hawala transactions. The agency said it is continuing to trace how money generated from the illegal drug trade moved through informal channels and was ultimately transferred outside India.
The arrest and the case behind it
The investigation is tied to the case of Gaurav Dawar, arrested by the ED on September 17 under the Prevention of Money-Laundering Act in connection with a large-scale heroin import operation in which the drugs were concealed in semi-processed talc, alongside related narcotics seizures across Delhi, Punjab and Haryana. Dawar remains in ED custody and is being questioned further.
The probe originated from an NIA First Information Report filed under the Unlawful Activities (Prevention) Act, the Narcotic Drugs and Psychotropic Substances Act, and the Indian Penal Code, against Harpreet Singh Talwar — the prime accused in the 3,000-kg Mundra Port heroin seizure case — and others. The NIA has already filed six charge sheets in the case, accusing multiple individuals of conspiring with an international drug syndicate run by a wanted mastermind known as Vitaysh Koser, alias Raju Dubai, in coordination with Pakistani ISI agents and Afghan nationals.
The ED conducted multiple rounds of searches under the anti-money laundering law between September 15 and 17.
Payments in cigarettes, betel nut — and nightclub investments
Investigators say Dawar and Talwar were compensated both in cash and in kind for facilitating the smuggling of narcotics consignments. The in-kind payments reportedly included prohibited items such as Gudangaram cigarettes, betel nut consignments, dry dates and perfumes supplied by Raju Dubai, while Dawar also received cash in UAE dirhams directly from the mastermind during visits to Dubai.
The ED further alleges that proceeds from the narcotics trade and contraband smuggling were layered and funnelled into legitimate-looking ventures, including hospitality businesses, nightclubs and luxury assets. Dawar is accused of making cash investments in two Delhi nightclubs — Playboy Club and White Club — operated through an entity called Newera Feast and Hospitality Pvt Ltd.
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