Mexican Cartel Strategic Note No. 38: CJNG Expands its Operations in India

The October 2024, drug bust by the Narcotics Control Bureau (NCB), in collaboration with the Delhi Police, revealed the direct involvement of the Mexican Cártel Jalisco Nueva Generación (CJNG), in India, following the seizure of 95 kg of methamphetamine—both in solid and liquid forms—in the Kasna industrial area of Uttar Pradesh’s Gautam Buddha Nagar. This case is particularly significant as it marks the first publicly known instance of the CJNG engaging in the production of synthetic drugs on Indian soil.

Key Information: Alisha Dutta, “NCR drug bust reality: India’s transition from transit point to producer”. The Hindu. 15 November 2024, https://www.thehindu.com/news/cities/Delhi/ncr-drug-bust-reality-indias-transition-from-transit-point-to-producer/article68872950.ece

Mexican national, a Mumbai-based chemist, a Delhi-based businessman and a Tihar Jail warder, who played pivotal roles in setting up and operating the lab was arrested.

According to the officer, the market rate of 1 kg of methamphetamine is almost ₹3 crore.

 “We had found footprints of the Mexican drug cartel CJNG (Cartel De Jalisco Nueva Generacion) in different parts of Delhi-NCR but this is the first time that the member of the cartel was present in setting up the factory, which is alarming since it marks India’s transition into becoming a producer and consumer of hard drugs,” said the police source.

The officer added that the blueprint of the factory was drawn inside Tihar jail when a Delhi-based businessman befriended a Tihar warden.

“The businessman had been arrested two years ago by the Directorate of Revenue Intelligence (DRI) under the Narcotic Drugs and Psychotropic Substances (NDPS) Act. It was during this time that he came into contact with Tihar jail warden, who eventually became his partner in crime,” the officer stated.

Another source, who was part of the operation, said “the interrogation revealed that the cartel had plans of setting up multiple factories to reduce the risk of transit and the time of transit.”

Key Information: Prawesh Lama, “The Narcotics Control Bureau (NCB) busts secret meth lab near Delhi, says it has Mexican cartel link.” Hindustan Times. 29 October 2024, https://www.hindustantimes.com/india-news/ncb-busts-secret-meth-lab-busted-near-delhi-says-it-has-mexican-cartel-link-101730192296833.html

The officer added the group hired a chemist from Mumbai to produce the drug, with quality checks conducted by a Mexican cartel member residing in Delhi.

Chemicals like Acetone, Sodium Hydroxide, Methylene Chloride, Premium grade Ethanol, Toluene, Red phosphorous, Ethyl Acetate etc and imported machinery for manufacturing was also found.

This is the sixth bust by the Narcotics Control Bureau in 2024 alone.

Officials believe the drugs mafia had started setting up such clandestine labs to produce synthetic drugs such as methamphetamine and mephedrone in industrial areas so that local law enforcement agencies do not get alerted on account of transportation of material and machinery, waste generated from the laboratories and toxic fumes from the chimneys.

Key Information: “Explained: The Mexico cartel connection to the Greater Noida meth lab bust”. First Post. 30 October 2024, https://www.firstpost.com/explainers/greater-noida-meth-lab-bust-cjng-mexico-cartel-connection-13830473.html

“The profit margin by operating here is more than double. Also, the meth is second most expensive to cocaine and what they cooked here in Greater Noida was not meant for local supply but was to be exported,” the officer told the news agency.

The four suspects were presented before a special Narcotic Drugs and Psychotropic Substances (NDPS) Act court on October 27, which remanded them to three days of NCB custody.

According to NCB’s Deputy Director General (Operations) Gyaneshwar Singh, the investigation is now focused on tracing the financial assets and logistical networks generated through this drug trafficking.

Analysis

In October 2024, Indian authorities busted a methamphetamine lab in Greater Noida linked to the Cártel de Jalisco Nueva Generación (CJNG), a major Mexican drug trafficking organization, seizing 95 kg of Methamphetamine in solid and liquid forms. Earlier evidence, including the 2018 arrest of Gupta and his associates, also points to the presence of the Sinaloa Cartel—another powerful Mexican syndicate—in India, particularly in connection with fentanyl trafficking.

The involvement of Mexico’s two most powerful Transnational Drug Trafficking Organizations, like the Cártel de Jalisco Nueva Generación (CJNG) and Sinaloa Cartel, signals their expanding influence in South Asia, with India emerging as a key hub for precursor chemicals as well as setting up labs to synthesize fentanyl and methamphetamine to export it into the most profitable illegal drug consumer market in Europe, Australia, and the United States, thus diversifying their supply chains.[1]

These transnational Mexican cartels wield significant influence in major US cities and along the border, leveraging their deep knowledge of routes to infiltrate the country and sustain their operations.[2] They are the primary distributors of meth, fentanyl and its analogues in North America. The synthetic drugs, particularly opioids like fentanyl, which they export, contribute to the rising number of overdose deaths. Notably, the Trump Administration via the US State Department recently designated six Mexican cartels foreign terrorist organizations (FTOs).[3] The year 2022 alone in the US witnessed 73,838 fentanyl overdose deaths according to data from the US Centers for Disease Control and Prevention.

The primary reason for these overdose deaths lies in the high potency, unpredictable concentration levels, and limited consumer awareness regarding appropriate dosages. For instance, when a precursor chemical used in the synthesis of fentanyl becomes regulated or restricted, chemists often substitute it with alternative precursors. The resulting fentanyl may often have higher potency. Consumers, unaware of these changes, may unknowingly consume a dose that exceeds their tolerance levels, leading to fatal overdoses. On the other hand, this also shows that a good chemist can make the fentanyl using other chemical formulas, thus demonstrating the difficulty in regulating the synthetic drug industry.

On the other hand, Mexican cartels such as Sinaloa and CJNG are increasingly shifting from traditional plant-based drugs towards synthetic drugs due to their affordability, resistance to climatic conditions, shorter production times, higher profitability, and ease of transportation. Moreover, the legalization of certain drugs, such as marijuana, coupled with the challenge posed by rising criminal organizations to their cocaine business in the Andean region, which has driven up costs, has also motivated the cartels to transition towards synthetic drugs.

Importantly synthetic drug production requires two essential components: precursor chemicals and manufacturing facilities. In the past, these prominent Mexican cartels established clandestine labs in Mexico and other countries of the region, sourcing precursor chemicals primarily from China and India.[4] However, the recent synthetic drug production shift to Asia, comes because of US government’s stringent monitoring and diplomatic pressure on Latin American nations through tariff, along with the Mano Dura or Iron Fist policies adopted by some Latin American nations. This has restricted the cartel’s ability to set up labs in the region.

In response to these challenges, cartels have identified the strategic advantage of manufacturing synthetic drugs in countries like India and China where precursor chemicals are easily accessible. These countries offer favorable conditions, including the availability of cheap generic medicines, lax regulations, over-the-counter access to pills without prescriptions, and unregulated precursor chemicals, which remain legal due to their legitimate uses. Moreover, weak regulatory frameworks or enforcement gaps in monitoring the use of these precursors make it easier for cartels to acquire them. By establishing laboratories in the industrial areas of these countries, cartels can reduce manufacturing costs, diversify their supply chains, exploit underemployment by hiring inexpensive yet qualified chemists, and conceal their operations within legitimate industries amid regulatory gaps. Additionally, they can capitalize on the economic growth and trade activity of these countries, take advantage of lower shipping costs, and exploit global logistics networks by concealing drugs within legitimate exports.

Moreover, unlike Latin America, where the drug market is marked by significant violence, the drug trade in Asia tends to be less violent, thereby reducing the risks associated with entering this new market. Thus, both cartels are competing with each other to establish their presence in the Asian pharmaceutical sector.

The number of arrests being made in India and China tracing their roots to Mexican cartels proves this. For instance, the Sinaloa cartel’s alleged operations in India have been confirmed based on the 2018 arrest of Manu Gupta by Directorate of Revenue Intelligence (DRI) with 9 Kg of Fentanyl. The culprits sourced 4ANPP and NPP fentanyl precursors to make the finished product. Further, the supply of fentanyl precursors from India to the United States has been documented. For example, in October 2023, Moises A. Sanabria, of Bloomfield, New Jersey, pleaded guilty to one count of conspiracy to distribute fentanyl and one count of money laundering conspiracy. Alongside Sanabria, Indian nationals Aashish K. Jain and M. Eshwar Rao were implicated in the case. According to court documents, Sanabria received pills containing furanyl fentanyl and tapentadol from a pharmaceutical drug distribution center in India, which were then trafficked to New Jersey.[5] In another case, in December 2018, Mumbai police seized NPP destined to Mexico.[6] The Drug Enforcement Administration (DEA) has alerted Indian authorities about pharmaceutical companies in India supplying precursor chemicals.[7] Chinese companies also have been found selling fentanyl precursor chemicals online to Mexican cartels, according to investigations by the DEA.

Mexican cartels rely on connections with criminal syndicates in these countries for money laundering. For instance, the DEA notes Sinaloa Cartel’s connections with Chinese criminal syndicates for money laundering.[8][9] Banks such as HSBC and Citibank have been found guilty of involvement in laundering cartel money.[10][11] Moreover, the increasing use of cryptocurrencies for drug-related transactions has made it even more difficult to trace and disrupt these financial flows.

CJNG’s Growing Operation Base in India

The CJNG’s expansion to India is driven by three key factors: first, the Sinaloa cartel’s traditional criminal ties with Chinese syndicates, which offers a limited strategic advantage; and second, China’s intensified crackdown on fentanyl and Meth precursor chemicals under pressure from the United States.[12][13] Finally, India presents a favorable environment for such operations—offering easy access to precursor chemicals, a large pool of affordable and skilled pharmaceutical labor, remote industrial locations with limited oversight, relatively lax regulatory enforcement, low logistical costs, and strategic proximity to international trade routes.

The CJNG is indeed emulating the Sinaloa cartel, while simultaneously competing with it to forge connections with local criminal networks and chemists in India. In fact, CJNG involvement in India has been found in association with a meth lab, while the Sinaloa Cartel was found in association with a Fentanyl lab.

It should be noted that the seizures of meth labs or meth pills in India are not new and are more numerous when compared to fentanyl lab seizures, precursor or finished products because of the availability of Phensedyl, a codeine-based cough syrup, and Tramadol in India, but what’s specifically interesting about this latest bust is CJNG’s association.[14] Until this case it was never found to be directly involved. In fact, according to the Narcotics Control Bureau’s 2023 report, the majority of foreign nationals arrested in India for drug smuggling are from Nepal, Myanmar, Nigeria, and Bangladesh, with no mention of Mexican nationals. It is also noteworthy that Nigerians acted as brokers for Mexican cartels in drug smuggling operations. However, Mexican cartels are now directly involved to ensure the purity of their exports.[15]

Further, the recent bust of the CJNG’s meth lab raises concerns on the potential nexus between Indian gangsters and Mexican cartels, with traces leading back to Tihar Jail in New Delhi. Investigations suggest that the jail provided avenues for interactions between an alleged businessman and a jail warden, facilitating the illicit activity. Thus, the connection with Indian criminal gangs cannot be ruled out. Indeed, Tihar Jail, is infamous for hosting some of India’s most notorious criminals including Chota Rajan wanted for drug trafficking along with other illicit activities. Further, Deepak Boxer, who assumed Kingship of Jitendar Gogi Gang after Gogi’s death, remained, absconding until his capture in Cancun, Mexico, raising questions about whether Mexican cartels played a role in facilitating his escape. Reports suggest he was also attempting to reach the US via Mexico, raising concerns over the potential involvement of Mexican cartels given their significant influence along the US-Mexico border.[16] These criminal gangs are allegedly involved in drug smuggling nationally as well as transnationally along with other illicit activities, therefore the potential to form a nexus with Mexican cartels to smuggle precursors and launder money cannot be ruled out. Nonetheless, as of now, there is no intelligence available publicly regarding the nexus. Further, the bust raises concerns on Tihar jail premise being exploited for facilitating the nexus as well as the corruption involved.

Potential Concerns

The possibility of India becoming a synthetic drug production base for these cartels due to the availability of precursor chemicals could harm the country’s global stature, have devastating effects on its youth population as well as witness drug related violence.

Of particular concern is the potential crime-terror nexus between Mexican cartels and terrorist organizations such as D-Company, Haji Salim and with insurgent groups in India’s Northeast and Myanmar. Such collaboration could enable the smuggling of drugs and firearms into the country, amplifying criminal activities as well as drug related violence. Mexican cartels may also seek to establish ties with Myanmar-based ethnic militant insurgent groups (Arakan Army) as well as India’s Northeast insurgent groups to source precursors like pseudoephedrine for methamphetamine production, facilitating the nexus through India’s porous border, as well as making India as base of production, which could subsequently be exported to the US and Europe. Such connections would jeopardize India’s regional as well as national security. Further, as witnessed in narco-states the influx of drug money being poured into election campaigns and associated corruption cannot be ruled out.

In fact, historically, drug cartels have played a critical role in facilitating major security breaches in India. The 1993 Mumbai bombings, for example, were orchestrated with the help of smuggling networks linked to organized crime. Similarly, the 2016 Pathankot attack revealed connections between Pakistani terror groups and local drug cartels.[17] Thus, the potential for terrorists to exploit drug syndicates to infiltrate India remains a significant concern.

Further, Pakistan’s alleged use of drug money to fund separatist activities in Jammu and Kashmir underscores the challenges posed by drugs to national security. Reports from the Jammu and Kashmir region further suggest that drug addiction among vulnerable populations in the region is being exploited to support terror operations, threatening national security.[18]

Moreover, a nexus with Indian criminal syndicates or insurgent groups could aid Mexican cartels in laundering money. Notably, early evidence of such a collaboration has been documented by the DEA, following the arrest of three Non-Resident Indian men linked to the Sinaloa Cartel for money laundering activities.[19]

Sources

Prawesh Lama, “The Narcotics Control Bureau (NCB) busts secret meth lab near Delhi, says it has Mexican cartel link.” Hindustan Times. 29 October 2024. https://www.hindustantimes.com/india-news/ncb-busts-secret-meth-lab-busted-near-delhi-says-it-has-mexican-cartel-link-101730192296833.html.

Alisha Dutta, “NCR drug bust reality: India’s transition from transit point to producer.” The Hindu. 15 November 2024, https://www.thehindu.com/news/cities/Delhi/ncr-drug-bust-reality-indias-transition-from-transit-point-to-producer/article68872950.ece.

“Explained: The Mexico cartel connection to the Greater Noida meth lab bust.” First Post. 30 October 2024. https://www.firstpost.com/explainers/greater-noida-meth-lab-bust-cjng-mexico-cartel-connection-13830473.html.

Appendix

This appendix provides context on key Indian organized crime syndicates and terrorist groups:

• For the list of Designated Terrorist Organizations by the Indian Government; Please see: “LIST OF ORGANISATIONS DESIGNATED AS ‘TERRORIST ORGANIZATIONS’ UNDER SECTION 35 OF THE UNLAWFUL ACTIVITIES (PREVENTION) ACT, 1967, LISTED INTHE 1St SCHEDULE OF THE ACT,” https://www.mha.gov.in/sites/default/files/2023-03/TERRORIST_ORGANIZATIONS_10032023.pdf.
• D-Company: D-Company is a term coined by the Indian media to refer to one of Mumbai’s most notorious organized crime syndicates, founded and controlled by Dawood Ibrahim. In 2011, he was ranked third on the FBI’s “The World’s 10 Most Wanted Fugitives” list, and D-Company remains a significant player in global criminal activities.
• Haji Salim: Haji Salim, has been identified as one of the central operatives in this illicit trade, contributing to the trafficking of various drugs across South Asia.
• Chhota Rajan: Chhota Rajan, born Rajendra Sadashiv Nikalje, was once a close associate of Dawood Ibrahim and a prominent member of D-Company. However, he later split from Ibrahim and became one of Mumbai’s most feared gangsters. Currently, he is incarcerated in Tihar Jail.
• Delhi Crime Syndicates: Delhi crime syndicates, as mentioned below, are alleged to make money through extortion, drug trafficking, and illicit crimes: 1) Jitender Gogi Gang: Jitender Mann, also known as “Gogi,” was a prominent Indian gangster who operated in the National Capital Region (NCR). After Gogi’s death, Deepak Boxer assumed leadership of the gang. Deepak ‘Boxer’, who was extradited from Mexico last year, has been discovered to be running a full-fledged extortion racket from Tihar Jail. 2) Tajpuria Gang: The Tajpuria Gang, led by Sunil Tillu Tajpuria, is a rival group to the Jitender Gogi Gang. Tajpuria’s death in Tihar Jail, allegedly at the hands of four members of the Gogi Gang, has further fueled the rivalry between the two factions.

Endnotes

[1] “National Drug Threat Assessment 2024.” Washington, DC: Drug Enforcement Administration (DEA). May 2024, https://www.dea.gov/sites/default/files/2024-05/NDTA_2024.pdf.

[2] “United States: Areas of Influence of Major Mexican Transnational Criminal Organizations.” Washington, DC: Drug Enforcement Administration. July 2015, https://www.dea.gov/sites/default/files/2018-07/dir06515.pdf.

[3] “Designation of International Cartels.” Washington, DC: US Department of State, 20 February 2025, https://www.state.gov/designation-of-international-cartels/.

[4] Victoria Dittmar and Sara Garcia, “Is the Fentanyl Market Expanding Across Latin America?” InSight Crime. 13 October 2023, http://insightcrime.org/news/fentanyl-market-expanding-across-latin-america/.

[5] “New Jersey Man Admits to Conspiring with India-Based Company to Mail Illicit Pharmaceutical Meds to U.S. Customers.” Washington, DC: US Department of Justice. 25 October 2023, https://www.justice.gov/usao-sdil/pr/new-jersey-man-admits-conspiring-india-based-company-mail-illicit-pharmaceutical-meds.

[6] Srinath Rao, “Seized Opioid Was Bound for Mexico, Key Accused a Known Narcotics Offender: Mumbai Police,” The Indian Express. 29 December 2018, https://indianexpress.com/article/cities/mumbai/seized-opioid-was-bound-for-mexico-key-accused-a-known-narcotics-offender-mumbai-police-5514410/.

[7] Op. Cit., Drug Enforcement Administration at Note 1.

[8] “Federal Indictment Alleges Alliance Between Sinaloa Cartel and Money Launderers Linked to Chinese Underground Banking.” US Department of Justice. 18 June 2024, https://www.justice.gov/opa/pr/federal-indictment-alleges-alliance-between-sinaloa-cartel-and-money-launderers-linked.

[9] Guadalupe Correa-Cabrera, Colin Lewis, and William Yaworsky, “Mexican Money Laundering in the United States: Analysis and Proposals for Reform.” Journal of Illicit Economies and Development. Vol. 6, no. 1. 2024: pp. 64–78, https://doi.org/10.31389/jied.224.

[10] “HSBC Admits to Anti-Money Laundering and Sanctions Violations Following an HSI El Dorado Task Force Investigation.” Washington, DC: Immigration and Customs Enforcement. 11 December 2012, https://www.ice.gov/news/releases/hsbc-admits-anti-money-laundering-and-sanctions-violations-following-hsi-el-dorado.

[11] “The Salinas-Citibank Affair,” PBS Frontline. January 1996, https://www.pbs.org/wgbh/pages/frontline/shows/mexico/family/citibankaffair.html#:~:text=The%20sordid%20scandal%20swirling%20around,applicability%20of%20the%20US%20money.

[12] Vanda Felbab-Brown, “The Foreign Policies of the Sinaloa Cartel and CJNG – Part II: The Asia-Pacific.” Brookings. 5 August 2022, https://www.brookings.edu/articles/the-foreign-policies-of-the-sinaloa-cartel-and-cjng-part-ii-the-asia-pacific/.

[13] Keegan Hamilton and Shamani Joshi, “First China, Now India: How Drug Cartels Get Chemicals for Meth and Fentanyl.” Vice. 26 August 2021, https://www.vice.com/en/article/first-china-now-india-how-drug-cartels-get-chemicals-for-meth-and-fentanyl/.

[14] India and China have become major producers of methamphetamine at an industrial scale.

[15] Raquel Carvalho and Marcelo Duhalde, “Narcos: The World’s Hidden Drug Highways.” South China Morning Post. 24 November 2018, http://multimedia.scmp.com/week-asia/article/2174634/narcos-hidden-drug-trafficking/index.html?src=social.

[16] Karn Pratap Singh, “Gangster Deepak ‘Boxer’ Flee India Using Human Trafficking Ring. What Police Say.” Hindustan Times. 18 July 2023, https://www.hindustantimes.com/cities/delhi-news/gangster-deepak-pahal-aka-boxer-escapes-india-through-human-trafficking-ring-using-donkey-routes-to-reach-the-us-101689620248578.html.

[17] “Route Taken by Drug Cartel Comes Handy for Terrorists.” Business Standard. 3 January 2016, https://www.business-standard.com/article/pti-stories/route-taken-by-drug-cartel-comes-handy-for-terrorists-116010300420_1.html.

[18] Arun Sharma and Bashaarat Masood, “Drug Pandemic in J&K: Networks of Terror Intersect with Drug Supply Lines.” The Indian Express. 20 August 2023, https://indianexpress.com/article/express-exclusive/networks-of-terror-intersect-with-drug-supply-lines-on-ground-from-sky-and-online-8900226/.

[19] “Indian Operators Providing ‘Hawala Money’ to Mexican Cartels Hunted by US Sleuths.” Moneylife. 7 April 2021, https://www.moneylife.in/article/indian-operators-providing-hawala-money-to-mexican-cartels-hunted-by-us-sleuths/63446.html.