NARCO-CRIMINAL-TERROR NEXUS: INDIA ON CROSS WIRES

1. There is no better way to explain the contours of globalization and terrorism but the narco-criminal-terror nexus in India’s vicinity. Straddled between the global crescent and the golden triangle, India was always a lucrative gateway to the international market, but of late the nexus of narcotics trade and terrorism has assumed a nationalized corporate tenor to it with multiple protagonists playing their part. Decoding the jigsaw puzzle is a task in itself but for starters let’s focus on some basic ground rules. Firstly, terrorism is an expensive endeavor and needs constant funding. Secondly, linkages between Kashmir & Khalistan (K2) agenda of ISI and terror financing are inextricable. Thirdly Taliban controlled Afghanistan is a burgeoning narco-state with opium cultivation contributing nearly 7% of the country’s gross domestic product. Fourthly, the substance abuse trend line in Punjab and Kashmir has turned India now from a transit point to also a market place with attenuated supply lines and instant gratification of the terror networks with hawala networks as the suppliant gateway.

2. Having established the basic Terms of Reference (TsOR), let’s look at each of these issues one by one to understand the interplay and also the third hand of the triad, criminal-narco-terror nexus. It is established beyond doubt that Indian crime syndicates operating from Pakistan and Middle East are key players to this unholy nexus with 1993 bomb blasts clearly establishing the antecedents of this alliance. The word narco-terrorism is not new and was first used when drug smugglers in Bolivia, Colombia, Peru, Nicaragua and other Central American countries organized the illegal trade as a profession and ran a parallel government. As a matter of fact, the economy of this region depends on cultivation and production of cocaine and cannabis. Besides being a neighbour the US is the biggest market for narcotics. President Reagan decided to initiate actions against the leftist movements in Latin American countries during the 1980s that narco-terrorism became an issue for the first time. Closer home the Government of Pakistan under Gen Zia provided patronage to the narco-terror to fund mujahedeen in Afghanistan and the purported freedom fighters in Kashmir and Punjab. Pakistan an economically bankrupt state surviving on dole from IMF and its allies still is able to cough up enough finances to support its K2 agenda alludes to the basic fact that illicit trade of narcotics is the life-blood of terrorism in the sub-continent. This source of funding would further be strengthened with Taliban controlled Afghanistan offering itself to its ISI minders, Afghanistan accounts for 85% of the global acreage under opium cultivation, making the Taliban the world’s largest drug cartel. It in connivance with Pakistan controls and taxes opioid production, oversees exports and shields smuggling networks. This is essential to its survival. According to a recent report by the United Nations Security Council monitoring team[1], the production and trafficking of poppy-based and synthetic drugs remain “the Taliban’s largest single source of income.”

3. The use of drugs to fund terror is just one facet of the game plan, the other is to turn the younger generation to drugs, force them to petty crime and from there to terrorism; a journey of no return. In Kashmir itself the number of substance abusers has risen exponentially over the last few years.[2] Doctors at drug de-addiction centre of Institute of Mental health & Neurosciences (IMHANS) in Srinagar has recorded a 1500% increase in patients seeking help from substance abuse.[3] Substance use provides double benefit to the nexus, mendicant youth and a quick buck to finance their cottage industry of terror. To add to the complexity is criminal groups vying for control of drug trade in large towns and urban areas. The combination of these three factors can shred the social fabric of Kashmiri society. The tenuous economic condition of Kashmir would further get exacerbated and if Punjab is any bench mark to go by, doom’s day is round the corner. Kashmir has challenges of economic stagnation but with a non-productive work force and criminalization over and above terrorism would surely make any investor baulk at the prospect of committing sizable finances. There was an existing ‘gun culture’ which has given rise to a trigger happy and roguish generation and this ‘drug culture’ would impair the present youth driving them to criminal activity, drug abuse and finally terrorism. The vitriolic gun-drug culture would be a difficult challenge for even the most stout hearted.

4. The revival of Sikh separatist movement has been outsourced by ISI to organizations based in USA and Canada and with inroads into Europe, Sikhs for Justice (SFJ) operated by Gurpatwant Singh Pannu has made multiple attempts to put his demands on international stage by failed attempts like Referendum 2020. According to NIA, “SFJ, an unlawful association under the UAPA Act and other Khalistani terrorist outfits including but not limited to Babbar Khalsa International, Khalistan Tiger Force and Khalistan Zindabad Force along with their frontal organisations, have entered into a conspiracy to create an atmosphere of fear and lawlessness and to cause disaffection in people and to incite them towards rising in rebellion against the government of India. In furtherance of the above conspiracy, huge funds are being collected abroad for on-ground campaign and propaganda against missions in countries like the USA, UK, Canada, Germany and so forth. Campaigns are being spearheaded by designated terrorists — Gurpatwant Singh Pannun, Paramjit Singh Pamma, Hardeep Singh Nijjar and others”.[4] SFJ and other pro-Khalistani elements involved in this conspiracy, through their incessant social media campaign and otherwise, are radicalizing and recruiting youth to agitate and undertake terrorist acts for creation of separate nation of Khalistan after secession from Indian Territory. The recent bomb explosion in Ludhiana Court House on 23 Dec 21 is a classic case of narco-terror-criminal nexus being funded by ISI through SFJ via Germany.[5]

5. The Hazi-Sandhu-Arshad network with footprints in Iran, Afghanistan and Pakistan to Gujarat, Punjab and Kashmir has within no time converted their partnership into a mind-boggling trade of smuggling narcotics, mainly heroin, from Afghanistan and Pakistan to India and onwards to Europe and even Australia[6]. They have been audacious enough to set up a manufacturing unit in India to refine low grade heroin to high cut and refined product for international market. Drugs are transported from Afghanistan to Gwadar via the deserted Pashni area. Boats under protection of Maritime Security Agency of Pakistan bring the drugs to boats run by Indian smugglers like Arshad Sota. They offload it at Unjha port[7] in North Gujarat, from where it is transported by land to Punjab in trucks transporting cumin seeds for refining and onward shipment to Europe Australia and even Indian markets including Kashmir as well. On reaching Kashmir they are integrated with terror networks or criminal gangs of supply chain management and distribution.

6. Having established the linkages between drugs and terror, let’s look at the financial transaction of this trade and this where the criminal arm of the trident steps in. Illicit drug trade is highly lucrative and a short cut route to acquire wealth and affluence overnight. It was easy to make money, but difficult to move the funds to their destination. The drug traffickers had to face major problems in transaction of the drug proceeds. There were very few banks to take the risk, though there are instances of banks involvement in monetary transactions of drug money. The dealers had to explore some ways for the movement of cash. Therefore, innumerable channels were explored and created by drug syndicates. Their unorganized but systematic method of monetary transaction is popularly known as money laundering via Hawala. Money laundering is defined as use of money derived from illegal activity by concealing the identity of the individuals who obtained money and converts it to assets that appear to have come from a legitimate source[8]. The large sum generated from narcotic drugs has become part of the international monetary system. It plays an important role in the corporate sector and international monetary market. The black money is used to influence politics and economy. This money can buy politicians, fund elections, topple an elected government, take over business enterprises and destabilize an established politico-economic system.

7. The cash accumulated from narcotic drugs trafficking is laundered into licit money through investments in foreign banks, real estate, hotels, transportation and entertainment business.[9] More than banks, private financial institutions have helped drug barons to manage their finances. The ISI linkage to the money laundering enterprise is showcased through legitimate financial institutions is the case of Bank of Credit and Commerce International (BCCI) and Pakistan’s Habib Bank. The BCCI’s involvement in money laundering was to such an extent that it was nicknamed Bank of Crooks and Criminals. Founded by a Pakistani banker-Aga Hassan Abedi in 1972 in Luxembourg, BCCI had business interests in 70 countries and assets worth 20 billion US dollars by the 1980s. This bank was initially financed by Sheikh Zayed bin Al Nahayan of Abu Dhabi. Abedi fiddled with an idea of a bank for developing countries or a ‘Third World’s Bank’ for publicity. His vision carried many developing countries. Even Bank of America had an investment of US dollars 2.5 million in BCCI[10]. Within ten years the bank had grown to a considerable size. But voluminous monetary transactions by BCCI raised doubts about its clients and modus operandi. The Bank of America withdrew its investment in 1986 apprehending its drug connection. Many cases of drug profits gradually surfaced. Latin American drug cartels and drug syndicates of South East and South West Asian regions were the main clients of BCCI. They approached the BCCI with drug proceeds without any hesitation. The Pakistanis dominated this bank. Finally their narcotic drugs laundering drama came to an end in 1991 when the US Grand Jury indicted the managers and others involved in the transaction for fraud and racketeering. These two cases are explicit examples of illicit monetary transactions through legal channels. There are several other ways to launder drug proceeds through professional smugglers and gangsters. Many of these criminals deal only in narcotic drugs and run a parallel government to manage their global network. These groups are well organized and are popularly known as ‘drug syndicates’. They launder the drug proceeds through various means such as:-

• Bank Deposits and Loans or ‘Smurfing’
• Double Invoicing
• Investment in Foreign Business
• Investment in Real Estate
• Travel and currency exchange Agencies
• Hawala Transactions
• Currency Smuggling
• Conversion of Cash in Kind
• Gambling Joints
• Tax Havens (VDS etc.)

8. Needless to highlight that South West Asia especially India, Pakistan and Afghanistan offer vast opportunity for money laundering. It is a known fact that the real estate boom in India during the 1980s and early 1990s was because of unprecedented investment in property business by Daud Ibrahim (currently in Pakistan) and his associates. Similar was the case of the entertainment industry in Mumbai, Daud Ibrahim & Co. emerged as the real financier for films and the music industry during this time. His gang dominated the money market for ten years by funding such business enterprises in Mumbai. The unholy alliance of drug smugglers, criminals, builders, film producers and petty business enterprises came to light only after the Bombay Blasts in 1993. Until then no one that knew that illicit drug proceeds had already converted into legitimate business and government could do nothing about it as there was no document or paper, a prerequisite for legal action against the crime committed.

9. Export and promotion of illicit narcotics and terrorists suit Pakistan’s foreign policy aspirations in this region. Both the geography and polity of this region encourages Pakistan to sponsor terrorism in Jammu and Kashmir. The climatic conditions favour cultivation of poppy and the political condition helps Pakistan organize the Taliban Government economy to achieve its foreign policy goals in India. The amount Pakistan spends on sponsoring terrorism in India is nearly the same as it generates from illicit narcotics trade i.e. approximately US $2 billion. This could be a valid argument that it is narcotics that sustain Pakistan’s determination to keep India engaged in countering cross-border terrorism. Islamabad aims to weaken India’s political and economic will. By pumping the hard currency generated from illicit narcotic drugs trade, Pakistan plans to disturb the local money market and make a dent in the Indian economy. The economic liberalisation introduced in India also opens a plethora of opportunities to Pakistan based drug syndicates. The question arises how to cope with the menace of narco-terrorism in India? The narcotics scenario in the Golden Crescent and direct involvement of Talibani and Pakistani power brokers, politicians and law enforcement agencies therein has brought about an insecure Indian subcontinent. This insecure environment could be dealt with by analysing the prevalent situation in Afghanistan and Pakistan, which has become the breeding ground for both terrorists and drug traffickers. In other words unless the causes for sponsoring terrorism are examined, an effective response to this phenomenon cannot be worked out by any government or non-government agency. It is relevant to note that the reason for Pakistan’s involvement in such murky business lies not merely in its foreign policy objective to destabilize India, but also in its failure to evolve and establish a credible political institution within the country. The current politico-economic condition of Pakistan is the fallout of the unfulfilled commitments made by the political leaders to the people of Pakistan.

10. Growth of narcotic drug addicts and illegal narcotic syndicates is a manifestation of the growing frustration in Pakistan’s socio-economic and political system. Indian strategists and analysts need to take these negative trends in Pakistan into consideration. They should not ignore these developments as isolated domestic problems of Pakistan. It needs to be reiterated that socially and economically the Indian subcontinent is an integral whole. What happens in Pakistan has a spillover effect on India and vice-versa. And sooner or later the entire region tends to get directly or indirectly involved in the problems between the two. These two mainland countries actually hold the key to peace and stability in this region. Therefore, it would not be far-fetched to argue that India needs to analyse the problem of narco-terrorism in the light of overall politico-economic conditions in Pakistan. This is an important issue because Pakistan seems to have got entangled in the labyrinth of militarised politics, terrorism, illicit narcotic drugs trafficking and criminalisation in the name of religious based politics. It is high time that the people of Pakistan do some introspection, and set their house in order instead of talking about the right to self-determination for the Kashmiris in India. The Pakistan government too needs to understand that the trap it has laid for India, namely the net of terrorists, criminals and drug smugglers, might boomerang and could be fatal for the civil society in Pakistan.

[1] https://www.undocs.org/pdf?symbol=en/S/2021/486 accessed on 15 Jan 22.

[2] https://www.wionews.com/india-news/600000-youngsters-in-jammu-and-kashmir-have-become-drug-addicts-study-430035 accessed on 15 Jan 22. A recent study has revealed that Jammu Kashmir has 600,000 people involved in drug-related issues which are approximately 4.6 per cent of the population of the Union Territory. 90 per cent of these drug users are in the age group of 17–33 years.

[3] https://www.deccanherald.com/national/in-three-years-kashmir-witnesses-1500-increase-in-drug-abuse-994394.html accessed on 15 Jan 22.

[4]https://indianexpress.com/article/explained/sikhs-for-justice-nia-probe-farmers-protest-7152410/ accessed on 27 Jan 22.

[5] https://www.tribuneindia.com/news/punjab/key-conspirator-of-ludhiana-court-blast-arrested-in-germany-355463 accessed on 28 Jan 22.

[6] https://www.tribuneindia.com/news/features/afghan-heroin-via-pak-to-gujarat-then-punjab-hidden-in-spices-38028 accessed on 27 Jan 22.

[7] https://www.newindianexpress.com/nation/2021/aug/18/taliban-takeover-of-afghanistan-may-lead-to-spike-in-drugs-inflow-into-punjab-2346502.html accessed on 28 Jan 22.

[8] Robert Powis, The Money Launderer, (Chicago: Probus Publishing, 1992) pp. 191–236.

[9] K Subrahmanyam, Security in Changing World (Delhi: B R Publishing Com. 1990).

[10] Ibid. pp. 191–236.