Characteristics Of Organised Crime According to the Presidents Commission on Organised Crime 1986 , organised crime is the collective result of the commitment, knowledge and actions of three components :

i)     The Criminal groups;

ii)    The Protectors; and

iii)   The Specialist support.

The quintessential element of organised crime is continuing illegal activities for generating illegal profits. Conceptually, as long as this condition is satisfied, a group can be termed as an organised criminal group. Indian experience, however, shows that there is continuing illegal activity by organised criminal gangs, sometimes even in the absence of profit motive. Rigging of elections, proventing voters from exercising their electoral rights, preventing public servants from the lawful discharge of their duty, and recurrence of caste or communal violence on a continuing basis are such examples.

TYPES OF ORGANISED CRIME

A. Drug Abuse and Drug Trafficking: It is perhaps the most serious organised crime affecting the country and is truly transnational in character. India is geographically situated between the countries of Golden Triangle and Golden Crescent and is a transit point for narcotic drugs produced in these regions to the West.

India also produces a considerable amount of licit opium, part of which also finds place in the illicit market in different forms. Illicit drug trade in India centres around five major substances, namely, heroin, hashish, opium, cannibas and methaqualone. Seizures of cocaine, amphetamine, and LSD are not unknown but are insignificant and rare. Our borders have traditionally been most vulnerable to drug trafficking.

In 1990s, out of the total quantity of heroin seized in the country, 64% was sourced from the ‘Golden Crescent’. The Indo-Mynamar border is also quite sensitive but the percentage of seizures is much smaller. Indo-Sri Lanka border has also started contributing considerably to the drug trade.

India’s security strategy for the economic corridors and connectivity will have to entail water tight anti-drugs control measures and mechanisms to snuff out the possibilities of surges in narcotics trafficking that may result from better connectivity and established networks of peoples across the region.

Bordering Myanmar to the east are the four Indian states of Arunachal Pradesh, Manipur, Mizoram and Nagaland. Each state’s data from the National AIDS Control Organisation reports show high numbers of HIV-related diseases and volumes of drug trafficking. Narcotics and contraband firearms are regularly trafficked across the unmanned border as the routes of western Myanmar are controlled by India’s north-east insurgents. In recent years, Manipur has witnessed huge quantities of contraband high Pseudoephedrine Hydrochloride (PH)-content drugs, manufactured in India, being trafficked into Myanmar for processing narcotics especially heroin. The thriving ethnic insurgencies of Manipur with their own “tax structure” help to exacerbate the problem. Pseudoephedrine is smuggled from New Delhi to Myanmar and China via Guwahati by conduits based in Nagaland, Manipur and Mizoram

Traditionally, the Golden Triangle is a region between the borders of Myanmar, Laos, and Thailand; a famous region for its opium production. According to the United Nations Office on Drugs and Crime (UNODC) latest Southeast Asia Opium Survey 2013, opium cultivation in the Golden Triangle went up by 22 per cent in 2013 propelled by a 13 per cent growth in Myanmar. This registered a 26 per cent rise from 2012 in opium cultivation and yield. A decade ago, the Golden Triangle supplied half the world’s heroin, but drug barons backed by ethnic militias in Myanmar have turned to trafficking massive quantities of amphetamines and methamphetamines – “which can be produced cheaply in small, hidden laboratories, without the need for acres of exposed land” and these narcotics now dominate the Myanmar part of the Triangle. Insurgencies in Myanmar have been funded by narcotics trafficking. Cease-fires with the civilian government of Myanmar have left rebel groups free to continue their manufacturing and smuggling without interference. Since insurgencies based on purely ethnic issues are on the way out, high profits and access to the lucrative Thai and foreign markets now drive narcotics production and trafficking. The Myanmar government can do little to counter drug trafficking in the Golden Triangle as traffickers are well organized Chinese syndicates operating from outside Myanmar.

Myanmar’s Wa ethnic group is the largest producer of Amphetamine-Type Stimulants (ATS). The United Wa State Army (UWSA) is sustained by narcotics money in addition to arms contraband. Increases in the use of methamphetamine in Thailand have contributed to regional instability and Thailand’s National Security Council now recognizes narcotics smuggling as a critical threat to its national security. Thailand accuses Myanmar of unleashing “narcotic aggression” on Thailand and with the stupendous increase of methamphetamine production within Myanmar, drug trafficking into Thailand from Myanmar is on the rise.  Ethnic militias like the UWSA and Shan State Army (SSA) control most of the 1800 km Myanmar border with Thailand and corruption within the Thai security forces has abetted a thriving narcotics trade. Within Myanmar, the UWSA has emerged as the largest producer of methamphetamine. Mong Yawn, the drug base of the UWSA in the Shan state in Myanmar, enjoys direct access to the Thai province of Chiang Mai, emerging as one of the biggest drug boom towns near the Myanmar-Thailand border. Methamphetamine smuggling from Myanmar into Thailand by UWSA amounts to 200 million pills per year. Besides tackling border corruption within its ranks, the Thai military has a dangerous task, challenged as it is by the Shan and Wa armies complicit with narcotics crossing the border.

China’s Drug Control Strategy- The former military junta in Myanmar had been at war with the ethnic rebel groups of the Wa and the Shans interspersed with periodic ceasefires. The UWSA had earlier supported the Tatmadaw (Burmese military) but later retreated to the northern part of Shan state. The Tatmadaw also propped up several ethnic militias as a check against the ceasefire rebels. These various ethnic armed groups struck deals amongst themselves to facilitate the profitable narcotic trade.

China’s Yunnan province has a 1997-km border with Myanmar and narcotics have adversely affected many Chinese border villages. Previously heroin use made Yunnan suffer the highest HIV rate of any Chinese province or autonomous region. Ruili, the border town in Yunnan, suffers from two-thirds of drug users infected with HIV due to sharing contaminated injections. This situation is further aggravated by the presence of guns and a heightened risk of border related violence.

In 2000, taking advantage of the ongoing conflicts in Shan state in Myanmar, China persuaded the ethnic Wa to relocate with their drug production units from the Myanmar-China border to the Myanmar-Thailand border (See Figure II). The UWSA, aided by the Tatmadaw, had wrested the new acquired territory from the control of the SSA of Khun Sa, the opium warlord and ‘King’ of the Golden Triangle. This move reduced drug trafficking into China and at the same time dumped the problem on Thailand. China armed the Wa with weapons and supplied money. In return the Wa would control the entrance and exit regions of Shan state and ‘help’ the Chinese in constructing roads through the territory giving China the much desired access to the Myanmar coast. The Tatmadaw also formed an alliance with the UWSA to first defeat the Shans and second to serve as proxies in fighting the Thai army at the border.

However China still suffers narcotics trafficking, with 3.2 tons of ATS seized in the Yunnan province in 2009. China has taken measures in the pharmaceutical industry to deter illegal drug production. The latest seizure of 3.3 tons of crystal methamphetamine in South China, Guangdong province, was made in early 2014. However, China is far from ensuring that the flow of drugs remains limited, and its own provinces escape its lethal effects.

Illicit drug trade along the Golden Triangle has serious implications for Northeast India. First, opening up to Southeast Asia carries a double edged sword. On one hand, it promises development and investments. On the other hand, it invites the danger of rapid flow of illicit drugs and arms. Second, without effective drug control mechanisms that guarantee that illicit trade is kept to the minimum, the adverse consequences of illicit drugs on Northeast society could leave long term negative effects. Third, India should establish institutional mechanisms with China, Myanmar and Thailand to counter-illicit trafficking. Finally, there must be a long term Indian strategy to limit drugs trafficking, address the social impact of drug addiction, spread the word about the ill effects of drug abuse in schools, and established efficient rehabilitation centres in the HIV and drug zones in Northeast India. There is perhaps no other way to address the life threatening effects of drug addiction and HIV, currently destroying youths in Northeast India especially Manipur.

B. Smuggling: Smuggling, which consists of clandenstine operations leading to unrecorded trade, is another major economic offence. The volume of smuggling depends on the nature of fiscal policies pursued by the Government. The nature of smuggled items and the quantum thereof is also determined by the prevailing fiscal policies. India has a vast coast line of about 7,500 kms and open borders with Nepal and Bhutan and is prone to large scale smuggling of contraband and other consumable items. Though it is not possible to quantify the value of contraband goods smuggled into this country, it is possible to have some idea of the extent of smuggling from the value of contraband seized, even though they may constitute a very small proportion of the actual smuggling.

C. Money Laundering & Hawala: Money laundering means conversion of illegal and ill-gotten money into seemingly legal money so that it can be integrated into the legitimate economy. Proceeds of drug related crimes are an important source of money laundering world over. Besides, tax evasion and violation of exchange regulations play an important role in merging this ill-gotten money with tax evaded income so as to obscure its origin. This aim is generally achieved via the intricate steps of placement, layering and integration so that the money so integrated in the legitimate economy can be freely used by the offenders without any fear of detection. Money laundering poses a serious threat world over, not only to the criminal justice systems of the countries but also to their sovereignty.

The United National Convention against Illicit Traffic in Narcotics Drugs and Psychotropic Substances Act, 1988, (known as the Vienna Convention) to which India is a party, calls for criminalisation of laundering of the proceeds of drug crimes and other connected activities, and the confiscation of proceeds derived from such offences.

The tainted (Black) money is being accumulated and integrated into the economy by organised racketeers, smugglers, economic offenders and antisocial elements and is adversely affecting the internal security of the country.

Illegal currency transfers via nonbanking channels are called Hawala. It is an underground banking system. Secret flows of money can take place in free currency areas as well as in areas where currency conversion restrictions are practised due to the shortage of foreign exchange. It operates in the following manner. Someone in the USA, for example, deposits $1000 with an under-ground banker for payment to be made in India. The US under-ground banker contacts their counter part in India immediately on the telephone or by wire service and sends a coded message for payment to the Indian recipient. The hawala operator in India would contact the recipient and fix a meeting place. The recipient, in the meanwhile, would have received instructions on the telephone about the code word s/he has to exchange with the hawala operator. Thus, the hawala operator in India and the recipient of the money would exchange code words and the hawala operators would hand over the money to the recipient. Of course, the hawala operator in USA would charge a fee for the service rendered. There is no physical transfer of money in hawala operations as in the regular banking channels. This channel is generally used by drug traffickers, smugglers and kidnappers. Basically, the system operates on an ethnic network. The network may include more than 3 or 4 countries. The principal operators engage agents and sub agents in various countries for collection and disbursement of money.

Hawala is wide spread in India. Families who have members earning abroad are clients of the system. The dangerous aspect of the hawala system is the nexus between hawala and illicit arms smugling, drug trafficking and terrorist crimes. Investigations in hawala related crimes are conducted under the Foreign Exchange Regulation Act. Even through the word ‘hawala’ has not been defined in FERA, the essence of the Act is that any person who retains foreign exchange abroad or sends foreign exchange abroad, without the Reserve Bank’s permission is violating FERA provisions.

D. Terrorism & Narco-Terrorism: Terrorism is a serious problem which India is facing. Conceptually, terrorism does not fall in the category of organised crime, as the dominant motive behind terrorism is political and/or ideological and not the acquisition of money-power. The Indian experience, however, shows that the criminals are perpetrating all kinds of crimes, such as killings, rapes, kidnappings, gun-running and drug trafficking, under the umbrella of terrorist organisations. The existing criminal networks are being utilised by the terrorist leaders. India faced serious problems in the Punjab in the 1980s, which has since been controlled with the installation of a popular government. The North East still continues to be in turmoil due to the unlawful activities of ULFA and NSCN. The terrorist groups there are partly financing their operations by kidnappings for ransom of tea garden executives and extortion from businessmen.

India has become vulnerable to narco terrorism, bounded as it is by the ‘Golden Crescent’ on the West and the ‘Golden Triangle’ on the East. Narco terrorism assumes several forms, namely:

(a) terrorists themselves indulge in drug trafficking to support their movements ;

(b) sympathizers of terrorists living abroad indulge in drug trafficking and send part of their illegal profits to fund the terrorist movements ;

(c)   terrorists join hands with drug lords to gain access to the powers, in the countries sympathetic to their cause, in order to utilise their connections with political powers ;

(d) terrorists give protection and support to drug traffickers with fire arms, and the drug traffickers, being acquainted with the routes, assist the terrorists in border crossings to bring arms and drugs in the target country; and

 (e)         Smugglers supply fire arms to the terrorists who are also drug traffickers.

The areas affected by terrorism in India are the border States which also happen to be transit roues for narcotics to their destinations in the Western world. It is not a concidence that the growth of terrorist movement in Punjab synchronised with the emergence of the Golden Crescent as a major drug producing area in the early 1980s. The emergence of drug mafias in the Golden Crescent countries and their linkages with smugglers in the border States of India have given impetus to gun-running. There is positive evidence of narco-terrorism in the border States of India even though the magnitude there of is not significant. Some mixed consignments of narcotic drugs and arms were seized from smugglers in the Punjab. There is also evidence that the money generated abroad by the smugglers was used for purchase of weapons which were smuggled into the country for terrorist activities.

E. Light Arms Proliferation & Trafficking: Light arms proliferation is a global phenomena. It has extracted a heavy toll in terms of human lives and socio economic development of entire regions, costs of which can never be adequately computed. In Afghanistan, the death toll has passed 1,00,000 and is still rising, while Cambodia, Sri Lanka and some African States continue to see conflict related deaths in their thousands. India has also suffered due to trafficking in illicit arms. The twin phenomenon of rising crime as well as armed conflicts and terrorism are directly linked to the global proliferation and movement of weapons.

With the ‘Golden Crescent’, and the ‘Golden Triangle’ in India’s neighbourhood, drug trafficking poses yet another threat to our security.

Drug syndicates are generating huge funds, a part of which is being used to give financial support to some of these subversive groups.

The intelligence agencies like the ISI are recruiting a number of ‘carriers’ in drug trafficking as their agents. These agencies provide legal immunity for their criminal activities in their own country in addition to giving them financial and logistical support. The serious internal security problem, if not checked effectively can develop an external dimension.

Narcotics Control Bureau (Ncb)

The Narcotics Control Bureau (NCB) is the chief law enforcement and intelligence agency of India responsible for fighting drug trafficking and the abuse of illegal substances.

Formation:

The Narcotics Control Bureau was created on 17 March 1986 to enable the full implementation of the Narcotic Drugs and Psychotropic Substances Act, 1985 and fight its violation through the Prevention of Illicit Trafficking in Narcotic Drugs and Psychotropic Substances Act, 1988.

The law was established to fulfill India's treaty obligations under the Single Convention on Narcotic Drugs, Convention on Psychotropic Substances, and United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances.

Functions

The chief purpose of the Narcotics Control Bureau is to fight drug trafficking on an all-India level. It works in close cooperation with Customs and Central Excise, Income Tax, Indian Police Service(IPS), Central Bureau of Investigation (CBI), Central Economic Intelligence Bureau (CEIB) and other Indian intelligence and law enforcement agencies both at the national and states level. 

The NCB also provides resources and training to the personnel of India's law enforcement agencies in fighting drug trafficking.

The NCB also monitors India's frontiers to track down points where smuggling activities take place with foreign traffickers.