Cigarette Racket: Nationwide Raids Target Smuggled and Counterfeit Korean Cigarettes

Delhi-NCR residents may easily spot the popular Korean cigarette brand ESSE at local paan and cigarette shops—from Connaught Place in New Delhi to Film City in Noida. However, these cigarettes are not legally sold in India. They are either smuggled or counterfeit, bypassing legal channels.

Following complaints from the Korean company, authorities have launched a nationwide crackdown on counterfeit ESSE cigarettes. On Thursday, 18 December, 14 wholesale distributors in Delhi-NCR were raided, and millions of cigarettes were seized.

High Court Orders Raids
The raids were conducted under the directions of the Delhi High Court, with the Korean company KT&G and its Indian partner S.S. Rana & Co. collaborating with enforcement authorities. All products bearing counterfeit ESSE trademarks were confiscated. The distributors had no records of legal procurement, prompting the Korean company to file a case against 14 individuals in the High Court for trademark infringement.

Raids to Expand Across Major Cities
S.S. Rana & Co. stated that further operations are planned in Mumbai, Bengaluru, Chennai, and Hyderabad to curb the spread of counterfeit tobacco products. KT&G HQ’s IP division director, Young-Hun Kim, emphasized that strict action will continue against anyone misusing the ESSE trademark to protect Indian consumers and ensure trust in genuine products.

Impact on Government Revenue
According to Vikrant Rana, Managing Partner of S.S. Rana & Co., the rise of illegal and counterfeit cigarettes is a serious challenge, reducing government revenue. Smuggled cigarettes bypass taxes, depriving the government of significant revenue. Legal sales of genuine cigarettes could generate crores in revenue for the exchequer.

Non-Compliance with Health Standards
The Ministry of Health and Family Welfare implemented the Cigarettes and Other Tobacco Products (Packaging and Labelling) Amendment Rules, 2024, effective nationwide from June 2025. All cigarette packs must now carry legal pictorial warnings, including bold text stating “TOBACCO CAUSES PAINFUL DEATH” and images of cancer-affected patients. The rules specify font size, color, and placement of the warnings to ensure compliance.

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