New Delhi, September 24, 2026 (Yes Punjab News)
Enforcement Directorate (ED) investigations into a cross-border narcotics network have shed light on how alleged proceeds from drug trafficking were moved through hawala channels and invested in businesses, including hospitality ventures, as part of a suspected terror-financing network, officials said.
The ED has described its investigation involving Gaurav Dawar as part of a cross-border heroin smuggling and terror-funding racket. The agency has said it identified proceeds of crime totalling nearly Rs 89 crore, including Rs 74 crore allegedly transferred through hawala to Afghanistan and used for terrorist activities.
The investigation is part of a wider government effort to tackle the links between narcotics trafficking, money laundering, hawala transactions and terror financing. Multiple agencies, including state police forces, the Intelligence Bureau, Narcotics Control Bureau, Customs and the ED, are involved in efforts to dismantle such networks.
According to officials, drug proceeds generated by international syndicates can be moved through multiple jurisdictions before reaching India. The network under investigation allegedly has links across Afghanistan, Pakistan and Dubai, with funds being routed through hawala channels.
Officials said money reaching India is allegedly parked in legitimate businesses until further instructions. Such investments can make illicit funds appear to be part of normal commercial activity.
The Dawar case illustrates the alleged mechanism. Dawar was arrested by the ED on September 17 under the Prevention of Money-Laundering Act (PMLA) in connection with a case involving heroin concealed in semi-processed talc and narcotics seizures in Delhi, Punjab and Haryana.
The investigation also involves Harpreet Singh Talwar and alleged international syndicate operator Vitaysh Koser alias Raju Dubai. According to the ED, Dawar and Talwar allegedly facilitated narcotics consignments and received remuneration through cash, hawala transactions and goods.
The alleged payments included prohibited cigarettes, betel nut consignments, dry dates and perfumes. The ED has also alleged that Dawar received cash in UAE dirhams from Koser during visits to Dubai.
Officials said payments in kind can help syndicates avoid conventional banking channels and reduce the immediate digital or documentary trail associated with cross-border cash transfers.
The ED has further alleged that proceeds from narcotics trafficking and contraband smuggling were layered and integrated into commercial hospitality ventures, nightclubs and luxury assets. Dawar allegedly invested cash in Delhi-based Playboy Club and White Club, operated through Newera Feast and Hospitality Pvt Ltd, along with co-accused persons.
Investigators are examining how such businesses could potentially be used to mix illicit proceeds with legitimate commercial earnings. Officials have also pointed to mechanisms such as fictitious bookings, dummy transactions and inflated or fabricated invoices as methods that can be used to disguise the source of funds.
The investigation is continuing, with the ED seeking to identify additional proceeds of crime and trace the wider financial network associated with the alleged narcotics and hawala operations.
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