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Meerut Counterfeit Cigarette Bust Highlights India’s Illicit Trade Losses

Meerut Counterfeit Cigarette Bust Highlights India’s Illicit Trade Losses
UP fake cigarette bust: India’s illicit trade costs ₹2K cr, 1/4th market relies on illegal products · thestatesman.com

Police in Meerut found a factory making cigarettes that copied well-known brands.

The factory was inside an abandoned school building in Doodhli village.

Police seized cigarettes, equipment and materials worth more than ₹3 crore.

The factory owner was arrested, and workers were questioned.

Police are also checking whether the school management knew about the factory.

Illegal cigarettes avoid taxes and can reduce the money collected by the government.

Different organizations give different estimates of how much money India loses because of this trade.

Experts also warn that money from illegal trade can support criminal activities.

Key facts

Seizure value
More than ₹3 crore, including cigarettes, machinery and raw materials.
Location
An abandoned school building in Doodhli village, Meerut.
Arrests and questioning
The alleged owner was arrested; workers were detained for questioning.
2025-26 seizures
Nearly 150 million illicit cigarette sticks were seized in the first three quarters, according to a Central Board of Indirect Taxes and Customs official.
2023-24 seizures
FICCI reported seizures of 90.98 million illicit cigarette sticks.
Market share estimate
The Tobacco Institute of India says illegal cigarettes account for as much as one-fourth of India’s cigarette market; Euromonitor International data cited in the report puts the figure at 26.1%.
Revenue loss estimates
Reported estimates range from more than ₹13,331 crore in 2019-20 to ₹23,000 crore annually; an international estimate cited in the report exceeds ₹21,000 crore.

Quotes

Tobacco Institute of India

Industry organization cited for estimates on illicit cigarette trade in India.

“Illegal Cigarette trade comprising international smuggled and locally manufactured tax-evaded cigarettes accounts for as much as 1/4th of the Cigarette Market in India. It is estimated that the Government loses Rs. 23,000 crores per annum on account of illegal cigarette trade.”
thestatesman.com
“According to the recent data released by Euromonitor International, India is the 4th largest illicit market in the world. Illicit cigarettes currently account for 26.1% of the Indian cigarette market”
thestatesman.com

Sources

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