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Smuggling in India Report 2024-25 100

c. Seizures at SEZ

Case 5: 2.07 crore cigareĴes seized in SEZ diversion scam

In January 2025, DRI unearthed a novel modus operandi of smuggling ciga-
rettes wherein the importer imported foreign brand cigarettes into Vizag SEZ
through Nhava Sheva port but replaced them with locally procured/cheap
alternative cigarettes during transhipment and thus diverted the foreign origin
cigarettes into the domestic area. In this operation, 1.03 crore sticks of
low-value cigarettes were seized at Vizag SEZ, and 1.04 crore sticks of foreign
origin cigarettes were seized at Nhava Sheva port.

Smuggling of e-cigareĴes

The illicit trade of e-cigarettes and vaping devic-
es has emerged as a pressing issue in India, not-
withstanding the Government regulation under
the Prohibition of Electronic Cigarettes (Produc-
tion, Manufacture, Import, Export, Transport,
Sale, Distribution, Storage and Advertisement)
Act, 2019 and Foreign Trade Policy. There exists
a strong demand, especially among the youth,
fueled by the illegal inflow of these products.
Smugglers exploit covert methods such as online
marketplaces, courier networks, and hidden
shipments to smuggle e-cigarettes and vaping
devices into the country.

In FY 2024-25, DRI seized approximately 8 lakh
units of e-cigarettes/vape liquid. These opera-
tions occurred across Delhi, Ahmedabad, Kolk-
ata and Mumbai, with maximum seizures in the
Delhi-NCR region.

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