The Enforcement Directorate (ED) on Thursday conducted searches at multiple locations in Kerala as part of an investigation into an alleged money-laundering network connected with the smuggling of hybrid ganja from Thailand to India.
The searches were carried out at premises in Kozhikode and Palakkad districts and focused on individuals suspected of having links to the alleged drug trafficking network. ED officials said the operation forms part of a wider financial investigation aimed at tracing the proceeds generated through the illegal trade and examining how the money was moved across borders.
According to officials, searches were conducted at the residences of four accused persons identified as Abu Tahir, Harikrishnan, Jagath and Jaisal. Investigators are examining their alleged roles in a network involved in procuring and transporting hybrid cannabis into Kerala.
The financial investigation follows a police case that came to light in June, when Ernakulam Rural Police arrested a couple and seized approximately 18 kg of hybrid ganja from Perumbavoor. The seized contraband was estimated to be worth around ₹18 crore, highlighting the scale and commercial value of the alleged trafficking operation.
Thailand connection under investigation
Investigators suspect that the hybrid ganja involved in the case was being brought into Kerala primarily from Thailand. Unlike conventional cannabis cultivation, hybrid varieties can be produced through controlled cultivation methods, including hydroponic techniques. The alleged international supply chain has therefore become a key focus of the investigation.
Following the initial arrests, police reportedly apprehended nine additional people who were allegedly connected with the smuggling network. The investigation subsequently provided the basis for the ED to initiate proceedings under the Prevention of Money Laundering Act.
The agency is now examining the financial infrastructure allegedly supporting the drug trade, including the movement, concealment and utilisation of proceeds generated from narcotics trafficking.
Probe expands to alleged illegal fund transfers
A preliminary assessment by the ED indicates that substantial amounts of money generated through the alleged drug trade may have been transferred between India and Thailand through unauthorised channels.
Officials are investigating whether funds were moved outside the formal banking system to finance the procurement and transportation of narcotics. The agency is also examining possible violations under the Foreign Exchange Management Act (FEMA) as part of the broader financial probe.
The investigation is expected to focus not only on the individuals allegedly involved in transporting the contraband but also on the financial arrangements that enabled the operation to function across international borders.
Alleged recruitment of carriers
Investigators have also alleged that members of the network recruited carriers to transport hybrid ganja from Thailand to India. According to officials, some carriers were allegedly provided with visas and money to facilitate their travel and participation in the smuggling operation.
The use of multiple carriers could have enabled the alleged network to distribute the risk associated with transporting narcotics across international borders. Investigators are now attempting to establish the identities and responsibilities of individuals involved at different stages of the suspected supply chain.
Suspects believed to be in Thailand
The investigation has also acquired an international dimension, with officials indicating that some people allegedly linked to the racket are still in Thailand.
Authorities are working to determine their precise roles and are pursuing efforts to bring them back to India so that their involvement can be examined as part of the ongoing investigation. Their questioning could potentially provide investigators with additional information about the source of the contraband, the financial arrangements behind the alleged operation and the wider network involved.
The ED’s searches are part of an effort to follow the money trail rather than focus solely on the physical movement of narcotics. Under the money-laundering investigation, the agency is examining whether proceeds from the alleged drug trafficking were generated, transferred, concealed or used in a manner that attracts provisions of the PMLA.
The latest action underscores the growing focus of enforcement agencies on the financial networks supporting organised drug trafficking. By examining cross-border transactions, alleged illegal remittances and the recruitment of carriers, investigators are seeking to establish the complete structure of the suspected operation.
The searches are continuing, and further details regarding the material or financial records recovered during the operation are expected to emerge as the investigation progresses.