Paan’s dark supply chain: How Rs 120-crore khair smuggling network spread its tentacles

The khair tree, known for its catechu extract used in traditional Indian paan, has become a focal point in a multi-state smuggling racket stretching across India. Chhattisgarh Police recently dismantled an alleged Rs 120 crore network involved in illegal khair wood transportation. The operation, which began on June 17, started when Mahasamund district police intercepted a truck carrying 23,350 kg of smuggled khair wood bound for katha-making companies in Himachal Pradesh.

A forged National Transit Pass System (NTPS) clearance certificate, typically used to validate forest produce movement, was discovered. Authorities have since seized over 50 tons of Khair wood in the past two months, arresting 12 individuals. The investigation has revealed a complex web of activities involving eight shell firms, 10 mule accounts, and forged documents across six states.

Manish Agarwal, from Chhattisgarh, is suspected as the central figure, allegedly profiting from the scheme. The logistics of this operation, spanning five routes and multiple checkpoints, underscore the scale of the illicit activity.