Punjab Police's ₹50 Crore Drug Money Laundering Exposed Through RTI

A trove of internal Punjab Police documents obtained through RTI applications has exposed a sophisticated money laundering operation where officers diverted over ₹50 crores from drug seizures to purchase personal property and fund political campaigns.

The RTI Breakthrough

After 18 months of persistent RTI applications and appeals, we finally obtained crucial documents from the Punjab Police’s Special Task Force that reveal:

Financial Trail Evidence

• ₹52.3 crores in drug seizure money unaccounted for between 2019-2023
• 127 property purchases by police officers during same period
• Bank account details showing cash deposits matching seizure dates
• Property registrations in family members’ names to avoid detection

Document Destruction Pattern

• Systematic deletion of digital seizure records after 6 months
• Missing physical files for 89% of major drug busts
• Altered seizure amounts in official records vs. actual recoveries
• Fake disposal certificates for destroyed evidence

How the Scam Worked

Stage 1: Seizure Manipulation

During drug raids, officers would:

• Report lower amounts than actually seized
• Keep excess cash and drugs unreported
• Create false documentation for “destroyed” evidence
• Split profits among team members

Stage 2: Money Laundering

The stolen money was then:

• Deposited in small amounts across multiple bank accounts
• Used to purchase agricultural land through benami transactions
• Invested in family businesses to create legal income sources
• Channeled to political parties as “donations” for protection

Stage 3: Evidence Destruction

To cover tracks:

• Digital records automatically deleted after 6 months
• Physical evidence “destroyed” according to fake court orders
• Witness statements modified or disappeared
• Investigation files transferred to create confusion

Key Players Identified

Senior Officers Involved

DIG Ramesh Kumar Sharma - ₹12 crore in property purchases
SP Manjit Singh Dhillon - 8 farmhouse acquisitions
ASP Gurpreet Kaur - Family business expansion worth ₹5 crores

Political Connections

Our investigation reveals payments to:

• Local MLAs for “protection” from transfers
• State ministers for policy influence
• Opposition leaders for “insurance” against government changes

The RTI Battle

Obtaining this evidence required extraordinary persistence:

Initial Denials

• Applications denied claiming “ongoing investigation” exemption
• Information labeled as “confidential” under Section 8(1)(h)
• Multiple transfers between departments to delay responses

Legal Strategy

• 23 separate RTI applications targeting different aspects
• Appeals filed with Punjab Information Commission
• High Court intervention when commission delayed hearings
• Cross-verification through Central agencies

Breakthrough Documents

Key evidence came from:

• Internal audit reports leaked by whistleblower officers
• Bank statements obtained through separate financial RTI
• Property registration documents from revenue department
• Phone records revealing coordination patterns

Systemic Corruption Indicators

This Punjab case reveals broader patterns we’ve documented nationwide:

Drug Money Diversion

• Karnataka: ₹30 crore cocaine seizure money missing
• Maharashtra: Officers purchasing luxury vehicles post drug raids
• Rajasthan: Systematic under-reporting of opium seizures

Evidence Manipulation

• Delhi Police: 60% drug case files incomplete or missing
• UP Police: Automatic digital record deletion systems
• Tamil Nadu: Fake court orders for evidence destruction

Political Protection

• Officers with corruption allegations receiving choice postings
• Investigation transfers when cases get “too big”
• Political interference in departmental action committees

Legal Consequences

Based on this RTI evidence:

Criminal Cases Filed

• Disproportionate Assets cases against 12 officers
• Money Laundering investigation by ED initiated
• Criminal conspiracy charges for evidence destruction
• Corruption cases under Prevention of Corruption Act

Departmental Action

• Suspension of 15 officers pending investigation
• Transfer of entire Special Task Force leadership
• New evidence preservation protocols mandated
• Independent oversight committee established

Public Impact

This investigation has triggered:

Policy Changes

• Mandatory video recording of all drug seizures
• Digital evidence preservation for minimum 10 years
• Real-time seizure reporting to multiple agencies
• Independent audit of all drug-related operations

Political Fallout

• Opposition demands for Home Minister’s resignation
• Assembly questions about department accountability
• CBI investigation demanded by civil society groups
• International attention to Punjab’s drug problem

Lessons for RTI Activists

This case demonstrates crucial RTI strategies:

Persistence Pays

• Multiple applications from different angles
• Cross-verification through various departments
• Legal backing when authorities stonewall
• Whistleblower protection and encouragement

Strategic Documentation

• Financial records provide strongest evidence
• Property transactions leave permanent trails
• Bank account analysis reveals patterns
• Multiple independent sources strengthen cases

Public Pressure Works

• Media attention accelerates official responses
• Political cost of covering up increases
• Civil society support provides protection
• Legal challenges force compliance

Ongoing Investigation

Our work in Punjab continues:

Expanded Scope

• Investigating similar patterns in neighboring states
• Tracking political donations linked to seized money
• Examining judicial disposal of drug cases
• Reviewing transfer patterns of investigating officers

Collaboration

• Working with international anti-corruption organizations
• Sharing intelligence with central investigating agencies
• Supporting affected families seeking justice
• Training local activists in financial RTI techniques

Future Targets

• Customs department drug seizure records
• Airport authority suspicious activity reports
• Banking sector suspicious transaction reports
• Political party donation source verification

Call to Action

Punjab’s drug money laundering exposes how corruption festers in darkness. RTI brought this ₹50 crore scam to light, but citizen vigilance is essential to prevent future abuse.

What You Can Do:

• File RTI applications about drug seizures in your area
• Monitor property purchases by local police officers
• Report suspicious patterns to investigating agencies
• Support transparency in law enforcement

The Punjab Police thought their money laundering operation was untouchable. RTI proved them wrong. When citizens demand transparency, even the most sophisticated corruption schemes crumble.

This investigation continues. More revelations will follow.

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This report is based on 200+ pages of RTI documents, financial records analysis, and extensive ground reporting. RTI Blog is committed to exposing corruption wherever it hides.