Posted on: October 12, 2020 Posted by: admin Comments: 0

Author : Amisha Matkar, Student at  Indore Institute of Law

Co-Author : Shruti Gupta, Student at  Indore Institute of Law


“We need to remember that money laundered by organized crime represents the fruits of drug trafficking, arms dealing, prostitution, trade in human beings, Kidnapping and extortion. Tolerating the retained funds means tolerating the human misery that generated them in the first instance.”

 -Amanda Vanstone, Australian Justice Minister


Globalization has transferred the world financial system over the past years. The speed of thoughts and tools across borders has facilitated new avenues of trade, creating new markets and intensifying others. In this world of liberated trade, countries can access goods from all over the world. Channels of communication and movements of trade have opened among the rich, the poor, and every person in between. We all are linked; we all affect one another. Though, under these markets, illicit industries or black markets also take place in the world trade.

This paper focuses on the trafficking of drugs that is an immense problem for many countries. It is a substance that plays a lead role in mishap. The Paper presented how the Indian market occupied the vulnerable sector of the market and recognized it as a worldwide problem as it extends to every nook and corner of the world. It also focuses on Money Laundering is the criminal process of gaining “Dirty” Money which also originated a criminal activity and Violence. This paper critically suggested that the government takes many steps to control this problem and make more stringent laws to control drug trafficking.


Every country has to aim to progress more and more but if we see on the other side the countries are also getting devastated. Drug Trafficking is one of the most severe evils all over the globe. Today, no part of the globe is free from the curse of drug trafficking. Millions of drug addicts are leading dejected lives and demise. India is too coughed in this ferocious circle of drugs. Certainly, drug trafficking supplies a more reliable circulation of drugs, hence concerning more and more people making them obsessed. It is a substance that plays a lead role in this mishap.

In India, the trafficking of drugs is illegal (e.g. Cannabis, ecstasy, cocaine, and heroin) that constantly related to murder, prosecution, kidnapping, and other crimes. Even after being banned in India, it is still illegally selling openly. India is one of the biggest markets for the consumers so the supply is fulfilled according to the Consumer’s demand. Punjab has one of the fastest states which fall into the grip of drugs where many youths are involved in drug addiction.[1] The dilemma of drugs in the adolescence of Punjab is a subject of serious apprehension as every third person is addicted to drugs other than alcohol and tobacco.[2]

From this, we know how people are using illegal drugs in our country. Even After such a strong punishment, people are using it openly. For their sake of profit and addiction, people sell and buy it without any fear. So, it can be clearly said that laws that prohibit the illegal trade of drugs are only on paper as there is no practical application of the same.


Drug trafficking is a term that is related to numerous offenses concerning narcotic drugs and psychotropic substances such as the manufacture, crop growing, importation, smuggling, and advertising. The term extends to comprise crimes related to the tools and way of transport used in the charge of the offenses and the change of precursors and chemicals used in the illicit making of narcotic drugs and psychotropic substances as well as crimes connected to proceeds used in or consequential from illegal trafficking is known as Drug Trafficking.[3]


Drug trafficking is the most important part and mainly the vulnerable sector of the illegal drug markets.[4]Thousands of kilograms of illicit drugs cross global boundaries every day, exploit the hands of aggressive traffickers and enter the lives of drug dealers and addicts.[5] In India, the supply of the largest route of trafficking is captured by the Afghanistan, Asian nation, and also the Indian Ocean.[6] From the last 3 decades, India has become a transportation center as well as an end for heroin and hashish manufactured in the Golden Triangle and the Golden Crescent.[7] Additionally, pharmaceutical arrangements and precursor chemicals are made locally as well as it also trafficked through Indian territory. The nexus between drug traffickers also organized criminal channels.[8]

Nearly 70% of these drugs are trafficked over land using a variety of modes of transportation. Making the country’s borders the primary point of contact for trafficking. [9]In India, different border exhibit different trafficking patterns as follows-

India-Pakistan Border: The closeness of the India-Pakistan border to the Golden Crescent’, is the main significant producer of opium and cannabis in the world. It has created responsiveness to the trafficking of heroin and hashish.

India-Nepal border: Hashish and marijuana/ganja are the cannabis derivatives that are historically trafficked from Nepal into India. Recently, a rising demand for Nepalese and Bhutanese cannabis in India or an equivalent demand for pharmaceutical preparations furthermore as low-grade heroin in Nepal and Bhutan has resulted in the importation of drugs throughout the India-Nepal and India-Bhutan borders.

India-Myanmar border: Propinquity of the India-Myanmar border to the Golden Triangle’, rising demand for drugs among the Indian population in the Northeastern states. The porous and weakly protected border provided a proliferating atmosphere for traffickers to export heroin and Psychotropic substances into the country through the India-Myanmar border.

India-Bangladesh border: The India-Bangladesh border has been vulnerable to the importation of varied styles of drugs starting from hashish, marijuana/ganja, hashish, sugar, cough syrups, etc. Due to elevated demand for analgesic mainly based cough syrups in Bangladesh, put in towards drug traffic on the India-Bangladesh border.

Defending the borders against violations by either traffickers or terrorists becomes significant. At an equal time, dropping the demand for drugs in domestic markets is also vital. India has adopted an inclusive approach to dropping supply also as demand for narcotics and drugs.[10]

Mohammed Rawzdeen vs State Represented By[11]

The Intelligence Officer attached to the Narcotic Control Bureau, South Zonal Unit, Chennai. That on 04.09.2004 at about 4.00 p.m. when he was present in his office, he had received a discreet message stating that one Fathima Ruksana, who is indulging in illicit drug trafficking between India and Srilanka, had come down to Chennai along with her husband Mohammed Rawzdeen. The informer had also stated that one Ashok Fernando hailing from Thoothukudi, had also been indulging drug trafficking along with the said Fathima Ruksana and through whom the narcotic drugs had been transported to Srilanka by shipment. The informer had further stated that they had sent one Abdul Pari of Chennai to Pune and purchased 4 kgs of Heroin through him.


Just as the coins have two faces, head and tail in the same way drugs and money are the two faces of the coins in the way of trafficking. According to a report by the International Bureau of Narcotics, The Narcotic trade in India involves approximately Rs. 50 billion per annum. Today Drug Trafficking is the biggest and fast-growing Industry in the globe.[12]

It is recognized as a global problem as it spreads to every nook and corner of the globe. The World Health Organization anticipated that the number of drug addicts in the globe to be over fifty million.[13] The international trade in narcotics and psychotropic substances has become so profitable a business today to may design drugs mafia has surfaced all over the globe It was expected that around 80,000 drug addicts in Mumbai and 300 thousand in Delhi only.[14] Likewise, a sizable number was supposed to be there in another city as well. Now, hard drugs are also manufactured in India, and a substantial quantum comes in throughout different borders.[15]

Synthetic drugs like smack, brown sugar, LSD, heroin, cocaine marijuana, Etc., are accessible in all cities of India.

According to a report, drug-related the monetary worth of the drug trafficking market was $ 668.36 billion and the standard drug trafficking financial market was 16.70 Billion. The illicit drugs in India produce between $ 2.2 Billion to $4.5 Billion i.e., 10,000 to 20,000 crores.[16]


Children/youth, being minors with their supposed innocence, are targeted by drug traffickers in growing their markets because the police generally do not suspect them. Unlike adults who are slapped with strict penalties such as detention or the death penalty when caught, minors are placed under the severe regulation of parents/guardians or sent to rehabilitation centers. Children caught up in drug sales and trafficking are hard to trace and spot because of the illegitimate and concealed nature of the trade and the social and political sensitivity of the phenomenon.[17] As of the connected risks/ dangers and prospective difficulties, it is required to use a precautious, process-based approach to grow an indulgent of this rising issue. Furthermore, because of the new emergence of this phenomenon, we need to recognize:

  1. The personality of children/youth occupied in drug abuse, sale, and trafficking;
  2. The prototype of enrollment into the drug network and the strategies/techniques employed in getting the children addicted to drugs/drug network; and
  3. The strategies/techniques in preventing them from unification and/or rehabilitating them from the drug network and become part of the normal society of work, education, and social networks in the public and society.

The word Money Laundering is as old as money itself. It is an illegitimate process of making large amounts of money which is generated through illegal activity.[18] Money Laundering is the criminal process of gaining “Dirty” Money appears legitimate instead of ill-gotten. That means it is one type of process that diverts money or goods which originates from criminal activity and makes it a legal source. The criminal activity such as drug trafficking, women and children trafficking, corruption, bank frauds, tax fudging generate the money laundering process.[19]

The three stages of processes involved in laundering drug money. The primary stage “placement” entails the dumping of the proceeds of the drugs into family banks and foreign financial institutions. The Next Stage “layering” transfers finances between various financial institutions to conceal their foundation and possession and to cover the audit trail. In the Third stage “integration” a lawful explanation for the funds is produced. This can be done by false invoicing, buy of financial instruments, investment in real estate, tourism, and other lawful businesses.[20]

Drug trafficking is a major part of money laundering. Around 40% of drug trafficking is followed by money laundering. According to a report, the financial worth of the drug trafficking market was $ 668.36 billion and a standard drug trafficking financial market was 16.70 Billion. The illegal drugs in India produce between $ 2.2 Billion to $4.5 Billion i.e., 10,000 to 20,000 crores.

Kamaljeet Singh @ Kuldeep Singh vs State of Haryana[21]

These appeals have been instituted against the judgment and order dated 29.04.2014 and 30.04.2014 rendered by the Additional Sessions 1 of 38 Judge, Sirsa in Sessions Case No.84-C of 2011, whereby appellant Amandeep Singh was charged with and tried for

offenses punishable under Sections 17 of the Narcotic Drugs and Psychotropic Substances Act, 1985 (hereinafter referred to as “NDPS Act“) and under Sections 411, 468 and 471 of the Indian Penal Code[22] (hereinafter referred to as “IPC“) while appellant Kuldeep Singh alias Kamaljeet Singh was charged with and tried for offenses punishable under Section 27-A read with Section 17 and under Section 25 of the NDPS Act and Sections 411, 468 and 471. They were convicted thereunder and sentenced as under:- Name of convict Under Sections Imprisonment Amandeep Singh 17 of NDPS Act To undergo rigorous imprisonment for ten years and to pay a fine of Rs.1 lac and in default of payment of fine to undergo rigorous imprisonment for one year.

Techniques of Laundering in India-

The following techniques in interest of laundering are-

  1. Hawala– Hawala is an illegal foreign exchange transaction. In this transaction, any person wanting to convert rupees into foreign or vice-versa is legitimately required to go through official banking ways. It is an illegal foreign exchange activity that operates based on trust. Once the transaction is done, accounts pertaining so that transactions are damaged leaving a slight trace for the Investigation.
  2. Casinos of Nepal-In Nepal casino operates only in Indian Rupees. Many casinos issued a false certificate indicating that the patron has earned an amount of money in the casino in exchange for an underhand fee. The patron simply returns to India and gives false documentation to the tax authorities. In this way black money becomes white.
  3. Benami Accounts- Money is deposited in fictitious Benami accounts and within a series of transfers the money is given to the laundered accounts.

Even considering that the number of financial investigations continues limited. the main facts that many cases are investigated by police who may not be trained in financial investigation and hence they are failed in initiating the process. Furthermore, many officers are not even aware of financial investigation provisions and asset forfeiture under the NDPS Act.  


In each market, disputes occur between the seller and buyer. Courts and other authorized mechanisms are in place to decide these conflicts.[23]Though, when a secretive black market is

formed, sellers and distributors do not have a legal income because a court will not put in force contracts for unlawful goods.

Drugs and drug-related violence don’t have common characteristics in either time or space.[24]“Even without the protection of the state and courts, illegal drug markets are generally peaceable, However, occasionally specific markets manifest huge levels of violence”

In many countries, the unlawful drug trade is assumed to be straight linked to violent crimes like murder. This is often very right altogether in budding countries, although is additionally a problem for several developed countries worldwide. In the late 1990s in the US, the Federal Bureau of Investigation projected that 5% of murders were drug-related. Corruption might encourage crime, but the crime itself could be a principal follower of corruption. These are contributing factors to crime and illegal drugs, but not any of them is either essential or enough for criminality and drugs to appear.


Nowadays, drug abuse is getting momentum, and also the youngsters are dropping this obsession, thinking this as a trend is their greatest mistake because it is not affecting themselves rather staking the lives of their dependents and family. The government of India to take an active decision regarding the restrain of drug trafficking. And, also wanted to improve physical and mental strength so that it will contribute to the development of the Indian Society. The following are the legal bodies that governing the drug abuse and drug trafficking in Society-

  • The Narcotic Control Bureau (NCB)
  • Narcotics Control Division
  • Central Bureau of Narcotics (CBN)
  • Other Agencies-Border Security Force, Directorate of Revenue Intelligence, Customs Commission, Central Bureau of Investigation.[25]

In India, drug abuse and trafficking were not properly governed, but after 1985, the government of India passed the Narcotic Drugs and Psychotropic Substances Act, (NDPS Act) in 1985. The act was enacted to win the battle against Drug trafficking, for this act criminalized the import, export, cultivation, trade, and any kind of local consumption of narcotic drugs and psychotropic substances. The Drugs related Act was amended three times in the year of 1989, 2001, and 2014, and made the punishment much stiffer than before. From this Act, if there is any kind of offense relating to the drug, then it is taken as a serious issue and is considered as a cognizable with non-bailable offense.[26]

In Chapter IV of the NDPS Act[27] fine and penalty varies with the drug offense, accused of a low quantity of drugs the penalty is 6 months rigorous imprisonment or a fine of Rs.10,000 or both. Over small quantities but less than the commercial quantity of drugs the penalty is ten years rigorous imprisonment or a fine of Rs.1,00,000 or both and for the commercial quantity of drugs the penalty is 10-20 years rigorous imprisonment or a fine of Rs.2,00,000 or both. Under Chapter II, the legislation-imposed laws on the drug-addicted people to cure them and improve their health by sending them to rehabilitation centers.

Even after the stiffer punishment than before the number of drug trafficking still increases day by day. No doubt, the government tried to make a stringent law than the previous act. But now it is time for the government to make more stringent laws because it is the society to assume over ten times before acknowledgment with the drugs.[28]

  1. Needs of more rigorous law related to drug trafficking
  2. Death punishment should be included in a drug trafficker
  3. Rather than a contemporary setup, there is a need for a holistic approach in controlling drug trafficking
  4. More attention is required on borders and immigration check to curtail the drug trafficking
  5. There is a need to establish a special act which deals with the financial transaction connected to drug smuggling
  6. The sale of poppy seeds in the unwrap market should be restricted through suitable guidelines.
  7. There is a want to fill the vacant and recruits adequate staff in every division of the drug law enforcement agency.
  8. There is a want to initialize new hi-tech devices such as cameras, screening etc.
  9. A drug-smuggling research wing should be established
  10. A financial investigation agency should be established in every state.

India today is suffering from many health issues which include mental and physical health, this is due to youth consuming the blanket of drugs. In India. The government takes many steps to promote the consequences of drug abuse such as advertisements in cinema halls and on YouTube. Moreover, drug-related laws are also not enough to control this. It is necessary to make more stringent laws to control drug trafficking in India which means to attain the double goals of decrease in drug supply and demand.

“Drug could be a poison; it offers wings to fly but it took away a blue

sky thus be aware and be safe”


[1] Lakhwinder Singh vs. Union of India and Others, CWP No. 9315 of 2011

[2]NCBI, Journal of family medicine and primary care, (September 22, 2020)

[3] By Janaki MC, Drug Trafficking- An Analytical Study, Research Gate, (September 22, 2020)

[4]Ashok Soloman vs. Union of India &Ors., 40 (1990) DLT 388

[5]Raj Kumar Karwal vs. Union of India, 1991 AIR 45

[6]Smt. Suganthip vs. The Competent Authority, 2005 CriLJ 2996

[7]Umar Abdul Shakoor Sorathia vs. Asstt. Director, N.C.B., Madras, 1997 (95) ELT 464 Mad

[8]Suo moto Proceedings inFleash vs. State andOrs., 2008 (1) JKJ 161

[9]By Nishika Prajapati, Drugs Trafficking in India, legal servicesIndia, (September 22, 2020),

[10] Ibid

[11]Mohammed Rawzdeen V. State Represented By 2010 Crl.A.No. 361 of 2008,

[12]By J. SASI KUMAR, NARCOTIC DRUGS AND MONEY LAUNDERING: A STUDY ON ILLICIT DRUG TRADE AMONG OPIUM CULTIVATORS IN INDIA, (September 22, 2020), file:///C:/Users/Downloads/201608020552270235597Report.pdf

[13]BachpanBachao&Ors. vs. Union of India, WP (Crl.) No. 82 of 2009

[14]Smt. Santosh vs. Union of India And Ors., 1998 CriLJ 612

[15] Ibid at 12

[16] Ibid

[17] By Emma Porio, The use of children in the production, sales and trafficking in drugs: A synthesis of participatory action-oriented research programs in Indonesia, the Philippines and Thailand, International Labour Office International Program on the Elimination of Child Labour, (September 28, 2020)—asia/—robangkok/documents/publication/wcms_bk_pb_24_en.pdf

[18] Del Agha vs. Directorate of Revenue, 92 (2001) DLT 762


[20] Supra Note at 12

[21]Kamaljeet Singh @ Kuldeep Singh vs State of Haryana SLP (Crl.) No. 8240/2019,

[22] Indian Penal Code,1860

[23]Ramesh Kaushik vs. B.L. Vig, Superintendent andAnr., 1981 AIR 1767

[24]State of Punjab vs. Baldev Singh, Appeal (crl.) 396 of 1990

[25]By Yash Soni, Drug traffikiling in India -by legal perspective, (Last opened September 20,2020) ,

[26] Ibid

[27]Narcotic Drugs and Psychotropic Substances Act,1985

[28] Ibid at 25

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