Illicit Trade Raising Socio-Economic, Security Concerns: Justice Manmohan

Illicit Trade

Supreme Court judge Justice Manmohan on Friday underscored the far-reaching consequences of illicit trade in India, warning that it not only drains the economy but also fuels organised crime, endangers public health, and threatens national security.

He was addressing the 11th edition of the “Movement Against Smuggled and Counterfeit Trade (MASCRADE)”, organised by FICCI CASCADE, where experts, global organisations and industry leaders discussed strategies to combat smuggling and counterfeiting.

“A Three Trillion-Dollar Problem”

Highlighting the magnitude of the issue, Justice Manmohan noted that illicit trade globally was estimated at $3 trillion annually.

“It is not just about the revenue loss for the country. The real cost is in the form of job losses, exploitation of innovation, and the growth of criminal syndicates. That is a huge problem with socio-economic and security implications,” he cautioned.

He added that counterfeit products can endanger lives. “Imagine you are sick and taking medicine but still not recovering because it is a counterfeit product. It has very serious issues attached to it,” the judge said.

“No Tax, No Warranty, No Remedy”

Justice Manmohan stressed that illicit goods not only evade taxation but also leave consumers helpless in the absence of warranties or accountability.

“Such products don’t provide tax revenue, nor do they come with any assurance. If something goes wrong, people have no remedy. Therefore, it needs to be curbed,” he said, urging civil society, businesses, and the government to work together.

India, he pointed out, already has multiple legal tools including the Safety and Standards Act, IPC, IT Act, and Bureau of Indian Standards Act, with more regulations being planned for agricultural products.

Online World A Bigger Challenge

The judge flagged the digital marketplace as a new breeding ground for counterfeiting.

“We are now living in a virtual world. The loss is even bigger and requires a new approach. Today, violations happen through servers outside the country, beyond the reach of police and courts,” he said.

He drew parallels with the film industry, which faces heavy piracy losses. “Earlier, the violation was about DVDs being sold at Palika Bazar. Today, it happens through anonymous torrent websites. Filmmakers often ask—how do we enforce our orders against them?”

Justice Manmohan warned that the profits from illicit trade are frequently diverted to fund terrorism, making it a national security threat.

“This is why it is important to beat the challenge, especially on e-commerce platforms. We must involve digital platforms and even social media influencers to prevent illicit trade. Our strategy must evolve to stay one step ahead,” he stressed.

Call For Collective Action

The judge urged a whole-of-society approach—bringing together traders, lawyers, civil society, corporations and the government to combat the menace.