The tracing proceeds of crime India narcotics PMLA NDPS Act framework is becoming central to India’s fight against organised drug syndicates. Legal experts argue that authorities must look beyond physical drug seizures. They must also track and dismantle the financial networks that keep the illegal trade alive.
In an analytical column for Bar & Bench, Mayank Makhija and Naman Sharma examine this approach. They argue that physical seizures alone cannot permanently disrupt organised drug networks.
Why Financial Disruption Matters
The authors say that drug seizures show active law enforcement. However, they do not always destroy the criminal enterprise behind the trade.
National Crime Records Bureau data shows that authorities seized more than 87.36 lakh kilograms of narcotic drugs between 2019 and 2024.
In 2025, the Narcotics Control Bureau seized more than 1,33,000 kg of drugs. It also destroyed narcotics worth ₹3,889 crore.
The agency secured convictions in 265 cases during the same year.
The authors argue that these seizures create operational difficulties for criminal networks. However, they may not remove the financial incentives behind the drug trade.
They stress that India must target the money that sustains organised narcotics networks.
This requires stronger financial investigations and better coordination between enforcement agencies.
How the NDPS Act and PMLA Work Together
The tracing proceeds of crime India narcotics PMLA NDPS Act approach depends on the combined use of different legal frameworks.
The Narcotic Drugs and Psychotropic Substances Act, 1985, targets the physical drug trade.
It criminalises the manufacture, possession, sale, and transport of illegal narcotics.
The Prevention of Money Laundering Act, 2002, targets the financial gains generated by scheduled offences.
The PITNDPS Act, 1988, provides another enforcement tool.
It allows authorities to preventively detain repeat offenders and key members of drug syndicates.
NDPS Act, 1985
The NDPS Act targets the physical handling of narcotic drugs.
Authorities can conduct searches and seizures. They can also arrest suspects and prosecute offenders.
PMLA, 2002
The PMLA targets wealth generated through criminal activity.
Authorities can trace suspicious financial transactions. They can also provisionally attach assets.
The law allows the State to pursue the final confiscation of property linked to money laundering.
PITNDPS Act, 1988
The PITNDPS Act focuses on preventive detention.
Authorities can use it against repeat offenders and key syndicate operators.
The law can disrupt criminal networks before lengthy trials conclude.
What Counts as Proceeds of Crime?
Section 2(1)(u) of the PMLA defines the term “proceeds of crime”.
The definition covers property obtained directly or indirectly through criminal activity linked to a scheduled offence.
Drug trafficking can generate large amounts of illegal wealth.
Criminal networks may invest this money in real estate. They may also use shell companies or digital assets to hide the source of their funds.
Authorities can trace such assets under the PMLA.
They may provisionally attach the property. The State can later seek its confiscation through the legal process.
New Challenges in Drug-Related Money Laundering
Modern drug syndicates increasingly use technology to avoid detection.
They may use encrypted communication platforms. Some networks also rely on cryptocurrencies and Hawala channels.
Synthetic drugs have created another challenge for enforcement agencies.
These developments require advanced investigative tools.
The authors call for greater use of artificial intelligence in risk assessment. They also highlight the need for advanced cargo scanners and drone defence systems.
Specialised financial intelligence units can further help agencies trace illegal money flows.
Preventive Detention as an Additional Tool
The authors also highlight the importance of the PITNDPS Act.
Some syndicate leaders operate remotely. They may never personally handle drug shipments.
Preventive detention can help authorities isolate key operators.
This approach can disrupt the continuity of organised drug networks.
It can also complement prosecutions under the NDPS Act and financial investigations under the PMLA.
Law Enforcement Must Also Address Addiction
The column stresses the need for a balanced drug policy.
Authorities must distinguish between commercial traffickers and people struggling with addiction.
Commercial drug operators should face strict action under the NDPS Act and PMLA.
People dealing with substance dependency need a different response.
They require accessible healthcare, rehabilitation, and counselling services.
Reducing drug demand is also essential for long-term success.
India’s fight against narcotics therefore requires more than large seizure numbers.
Authorities must also follow the money.
They must identify the financial networks behind drug syndicates and remove the profits that sustain them.
