21 May 2026·PIB

DRI seizes 3,00,000 electronic cigarettes/vapes worth Rs. 120 crore in a major crackdown on e-cigarette smuggling racket across Maharashtra, Gujarat, Delhi and West Bengal

In this note

1. At a Glance

Directorate of Revenue Intelligence (DRI), the apex anti-smuggling agency under CBIC, Ministry of Finance, busted a multi-state e-cigarette smuggling racket in May 2026, seizing ~3,00,000 vapes worth ₹120 crore across Maharashtra, Gujarat, Delhi and West Bengal [1][3].
Case illustrates enforcement of the Prohibition of Electronic Cigarettes Act (PECA), 2019 read with Customs Act, 1962 — a recurring theme in GS-II (governance/health) and GS-III (security/economy) [2].

21 May 2026 PIB release: DRI intercepted multiple mis-declared import consignments at seaports, airports and Inland Container Depots (ICDs) in 4 states, seizing nearly 3 lakh e-cigarettes valued at >₹120 crore [1].
Largest such operation against prohibited nicotine products in recent months [1].

18 Sept 2019: Cabinet promulgated the Prohibition of Electronic Cigarettes Ordinance, 2019 [2].
22 Nov 2019: Replacement Bill introduced in Lok Sabha → enacted as PECA, 2019 (Act No. 42 of 2019) [2].
DRI itself was constituted on 4 December 1957 as CBIC's apex anti-smuggling intelligence wing [3].

Parent Ministry: Ministry of Finance → Department of Revenue → CBIC → DRI [3].
Enabling Act for ban: Prohibition of Electronic Cigarettes Act, 2019 — bans production, manufacture, import, export, transport, sale, distribution, storage & advertisement of e-cigarettes [2].
Devices covered: Electronic Nicotine Delivery Systems (ENDS), Heat-Not-Burn products, e-Hookah and like devices [2].
Penalty under PECA: 1st offence — up to 1 yr imprisonment or ₹1 lakh fine or both; subsequent — up to 3 yrs + ₹5 lakh [2].
DRI structure: HQ Delhi, 12 Zonal + 35 Regional + 15 Sub-Regional Units, ~800 officers [3].
Seizure: ~3,00,000 vapes; value > ₹120 crore; 4 states; multi-port operation [1].

Health / Social: E-cigs target youth via flavoured pods; nicotine addiction risk drove the 2019 prohibition [2].
Legal: Dual invocation — PECA 2019 (prohibition) + Customs Act 1962 (mis-declaration, smuggling). Enforcement responsibility lies with States/UTs under PECA, but cross-border smuggling falls to DRI [1][2].
Economic / Fiscal: Mis-declaration evades customs duty + GST; grey market undermines tax base [1].
Geopolitical: Consignments sourced from foreign jurisdictions (China-Hong Kong vape supply chains commonly intercepted); DRI uses Customs Mutual Assistance Agreements (CMAAs) for intelligence sharing [3].
Administrative: Demonstrates inter-agency port/airport/ICD coordination; specific intelligence-driven targeting [1].

May 2026: DRI multi-state vape seizure (this case) [1].
2026: DRI launched 24x7 helplines ahead of Tamil Nadu & Puducherry assembly elections to curb smuggling [3].
Dec 2024: DRI marked its 67th Foundation Day; new HQ inaugurated in Delhi [3].

DRI was constituted on 4 December 1957 [3].
DRI functions under CBIC, Department of Revenue, Ministry of Finance — not MHA [3].
PECA, 2019 is Act No. 42 of 2019 [2].
The Prohibition of Electronic Cigarettes Ordinance was promulgated on 18 September 2019 [2].
PECA bans 9 activities including storage and advertisement, not merely sale [2].
"ENDS" = Electronic Nicotine Delivery Systems — covered under PECA [2].
DRI has 12 Zonal Units across India [3].
DRI is India's nodal point for Customs Mutual Assistance Agreements (CMAAs) [3].
Enforcement of PECA at retail level lies with States/UTs [2].
Seizure locations included ICDs (Inland Container Depots) — bonded customs facilities inland [1].

GS-II: Government policies & interventions in health sector; role of regulatory bodies.
GS-III: Internal Security — smuggling/illicit trade, role of agencies; Indian Economy — tax evasion & customs enforcement.
Plausible stems: 1. "Despite the Prohibition of Electronic Cigarettes Act, 2019, illicit vape markets thrive in India. Examine the enforcement gaps and suggest measures." (GS-III) 2. "Discuss the role of the Directorate of Revenue Intelligence in safeguarding India's economic frontiers." (GS-III) 3. "Public health legislations succeed only when supported by demand-side interventions. Comment with reference to the e-cigarette ban." (GS-II)

COTPA, 2003 — parent tobacco-control law; PECA's sibling.
WHO FCTC — Framework Convention on Tobacco Control; India is a party.
CBIC & Customs Act, 1962 — institutional framework DRI operates within.
Narcotics Control Bureau (NCB) — sister enforcement agency; contrast mandate.
National Tobacco Control Programme (NTCP) — demand-side counterpart.
Inland Container Depots / Dry Ports — logistics & customs geography.
Drug Controller General of India (DCGI) — regulator earlier consulted on ENDS.
GST Intelligence (DGGI) — parallel revenue intelligence wing.

DRI is under CBIC/Finance, not MHA or Commerce — frequently confused with DGFT.
PECA, 2019 bans storage & advertisement too; aspirants often think only sale/manufacture banned.
The ban came via Ordinance (Sept 2019) first, Act later — date trap.
DRI ≠ DGGI (the latter handles GST evasion).
Enforcement under PECA is state-led; import interdiction is DRI's domain — overlapping jurisdiction.