Tracing Crime Proceeds: A Key Strategy in India’s Anti-Narcotics Fight

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Tracing Crime Proceeds: A Key Strategy in India's Anti-Narcotics Fight

The 10th Apex Narco Coordination Centre (NCORD) meeting underscored the necessity of strategies that extend beyond mere drug seizures to effectively combat narcotics in India. This meeting highlighted the critical need for dismantling the organized criminal networks that underwrite the illegal drug trade.

According to the United Nations Office on Drugs and Crime (UNODC), the global illicit drug market generates hundreds of billions of dollars annually. These funds are seldom held in cash; instead, they are obscured through shell companies, informal value transfer systems, cross-border dealings, and increasingly, cryptocurrencies. Such funds are often reinvested into organized crime, corruption, and terrorism financing. Therefore, focusing solely on drug seizures without disrupting the financial networks behind drug trafficking is insufficient.

India’s geographical positioning, bridging the infamous “Death Crescent”—Afghanistan, Pakistan, and Iran—and the “Death Triangle”—Myanmar, Thailand, and Laos—amplifies this challenge. Additionally, the rise of digital technologies, cryptocurrencies, and clandestine financial channels facilitate the concealment of illicit wealth.

Recent Advances in Narcotics Control

The scope of the narcotics threat is evident from recent statistics. The National Crime Records Bureau (NCRB) reports that enforcement agencies seized over 87.36 lakh kg of narcotic drugs under the Narcotic Drugs and Psychotropic Substances (NDPS) Act between 2019 and 2024. In 2025 alone, the Narcotics Control Bureau (NCB) seized more than 1,33,000 kg of narcotic substances, destroyed drugs valued at ₹3,889 crore, and achieved convictions in 265 cases.

Significant operations like Operation Crystal Fortress, Operation Ketamelon, Operation WIPE, and Operation MedMax underline India’s comprehensive anti-narcotics efforts. Notably, in 2021, authorities seized approximately 3,000 kg of heroin at Mundra Port, Gujarat, valued at about ₹21,000 crore. More recently, in May 2026, Operation RAGEPILL uncovered a covert manufacturing facility in Dehradun producing Captagon.

Nonetheless, large-scale drug seizures alone do not dismantle organized crime. The real measure of success lies in disrupting the financial networks that allow traffickers to sustain and revive their operations.

A Comprehensive Government Approach

The Indian government has adopted a more integral approach to combat drug trafficking and substance abuse. The Supreme Court, in Union of India v. Namdeo Ashruba Nakade, recognized the escalating prevalence of drug use among youths and its societal harm, emphasizing that combating drug trafficking is both a constitutional duty under Article 47 and a legal mandate under the NDPS Act.

The government’s zero-tolerance policy against narcotics is encapsulated in its “Drug-Free India” vision, focusing on public awareness, institutional strengthening, and interagency collaboration. During the 10th Apex NCORD Meeting, Union Home Minister Amit Shah noted a significant increase in synthetic drug seizures, from over 2.6 million kg between 2004 and 2014 to nearly 11.8 million kg between 2014 and 2026. He released the Vision Document on Narcotics Control 2026-2029, urging a mission-driven approach to investigations.

India has bolstered its response through initiatives like NCORD, NIDAAN, and Anti-Narcotics Task Forces, enhancing coordination among enforcement agencies and fostering international cooperation. However, maintaining this momentum demands specialized financial investigations, improved intelligence sharing, and enhanced institutional capabilities.

The Financial Battlefront Against Narcotics

The Prevention of Money Laundering Act, 2002 (PMLA), plays a pivotal role in this context. While the NDPS Act targets the manufacture, possession, and trafficking of drugs, the PMLA addresses the economic aspect by seizing the proceeds from these crimes. Specific offences under the NDPS Act are included in Part A of the PMLA’s Schedule, enabling the seizure and forfeiture of properties acquired through drug trafficking.

The Financial Action Task Force (FATF) Mutual Evaluation Report on India highlighted the low volume of money laundering cases linked to drug trafficking, emphasizing the need to focus on the financial aspects and proceeds of such crimes.

The Enforcement Directorate (ED) has intensified its efforts, registering cases in major drug trafficking incidents, particularly those involving organized syndicates and cross-border networks. Recent investigations, such as the seizure of 890 kg of heroin and 52 kg of mixed narcotics from Pakistan through the Attari Land Customs Station, underscore the importance of financial probes in dismantling the broader criminal networks behind drug trafficking.

Pathway to a Drug-Free India

Realizing the vision of a Drug-Free India by 2047 necessitates a proactive shift in strategy. Drug trafficking has evolved into a complex transnational enterprise, demanding efforts beyond mere seizures. Unraveling the organized criminal syndicates behind the illegal drug trade requires timely intelligence sharing and robust coordination both domestically and internationally.

Enhancing the quality of investigations and prosecutions is crucial. Financial investigations under the PMLA should become standard practice in major narcotics cases to identify, trace, attach, and confiscate crime proceeds. Furthermore, existing laws, such as the Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988 (PITNDPS Act), must be effectively utilized to disrupt organized narcotics trafficking networks.

Trafficking networks have become more sophisticated, using encrypted communications, cryptocurrency, and synthetic drugs to evade detection. Authorities must employ advanced technologies like AI-enabled risk assessment tools, cargo scanners, and drone defense mechanisms, especially at vulnerable entry points.

An effective anti-drug policy cannot rely solely on enforcement. It must differentiate between traffickers who profit from illegal activities and those who are victims of addiction. While the former should face stringent legal action, the latter require rehabilitation and counseling facilities.

India’s success in eradicating drugs hinges not only on the quantity of drugs seized but also on its ability to dismantle the financial networks supporting the organized drug trade while addressing the social factors driving drug demand. A strategy combining robust law enforcement under the NDPS Act, comprehensive financial investigations under the PMLA, innovation, and international collaboration offers the most promising path forward in ensuring that India becomes drug-free.

Mayank Makhija is a practicing advocate at the Supreme Court of India and a former Assistant Legal Advisor & Special Public Prosecutor for the Directorate of Enforcement. Naman Sharma is a final-year student at Maharashtra National Law University, Nagpur.

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