A Delhi Police probe has uncovered an alleged terror-funding and drugs-for-weapons nexus linked to designated pro-Khalistan terrorist Arsh Dalla, with opium smuggled to Canada allegedly generating funds while weapons were pushed into Punjab through cross-border drone drops, an official said on Jattvibeday.Four members of the alleged syndicate have been arrested and over 5.10 kg of opium has been recovered during the investigation, which began following interception of a single courier parcel in Delhi — eventually exposing a network spanning Punjab, Haryana and Rajasthan and extending overseas.”The case dates back to February 7, when Delhi Police’s Crime Branch received specific information that a parcel booked through a courier company in Delhi for dispatch to Canada contained narcotics concealed beneath food and household items,” Special Commissioner of Police (Crime Branch) HGS Dhaliwal said in a statement.🚨🔥 NARCO-TERROR MODULE BUSTED! | ₹3.5 CRORE DRUG CONSIGNMENT FOILED 🔥🚔🎯 AGS, Crime Branch, Delhi Police busts an international narco-terror syndicate linked to fugitive terrorist Arshdeep Singh @ Arsh Dalla.💥 5.138 Kg Opium having international market value of Rs. 3.5… pic.twitter.com/kttDuKBVO5— Crime Branch Delhi Police (@CrimeBranchDP) August 23, 2026A team reached the courier company’s premises in Moti Nagar and intercepted the parcel. Although declared to contain food items and household articles, a search revealed a false bottom beneath the parcel, concealing nearly 3 kg of opium, police said.The false bottom was designed to evade routine security screening and customs inspection, they added.A case was registered in this connection at the Crime Branch police station.”Instead of treating the seizure as an isolated drug recovery, teams began tracing the entire courier chain. They identified the dispatcher, examined digital devices, scrutinised financial transactions and analysed technical evidence,” the official said.The investigation culminated in raids across Punjab, Haryana and Rajasthan — leading to interception of two more consignments of opium. One of the parcels — destined for Canada — contained 921 grams of the contraband, while 1.19 kg was found concealed in the other.Another 23 grams was recovered from the possession of one of the accused, taking the total seizure to 5.138 kg.The recovered opium has an estimated value of Rs 3.5 crore in Canada, according to the Crime Branch.The investigation also established that different agents were tasked with handling different aspects of the illicit operation. While some were responsible for procuring narcotics, and some took care of concealment and transportation, others prepared consignments and dispatched them abroad through courier companies.The four arrestees have been identified as Hardeep Singh (28), a resident of Barnala in Punjab; Simranjeet Singh (24) from Punjab’s Bathinda; Yadvinder Singh alias Jashan Sandhu (30) from Sirsa in Haryana; and Jivan Singh (23), a resident of Rajasthan’s Balotra.According to police, Hardeep was the operational coordinator of the India-based module. He allegedly procured opium through GPS-based dead drops, arranged its concealment and dispatch and provided details of foreign consignees. He was earlier named in a narcotics case registered in Punjab.Yadvinder allegedly coordinated procurement, concealment and packing and acted as a link between the India-based operatives and foreign handlers.Simranjeet allegedly handled booking and dispatch of consignments and arranged forged or unauthorised KYC documents.Jivan allegedly operated as the linkman for the Rajasthan leg of the network and facilitated procurement and dispatch of consignments. His disclosure led investigators to the opium parcel being sent to Canada from Bathinda, the senders of which are being traced, police said.”The investigation subsequently took a more serious turn when forensic examination of mobile phones, encrypted communications, banking records and technical data allegedly revealed links with foreign-based handlers and the network of Arsh Dalla,” the official said.According to police, the opium being trafficked abroad was meant for Dalla and his associates. After being sold in Canada, the proceeds were allegedly used for two purposes — financing and expanding the activities of the terrorist-linked gang and making payments to hostile foreign-based handlers.The payments allegedly formed part of a drugs-for-weapons arrangement. Police said in exchange for opium, weapons were pushed into forward areas of Punjab via cross-border drone drops, which were intended for associates of the Arsh Dalla network operating in the state.”Narcotics trade was not merely a profit-making exercise but part of a larger cycle in which drugs generated money, the money helped finance the network and arms were brought into India in return,” the official said.Police said the large profit margin in international opium trade made the arrangement particularly lucrative.Opium, allegedly procured in India for around Rs 1.5 lakh per kg, about Rs 150 per gram, could fetch between 50 and 100 Canadian dollars per gram in Canada. At prevailing exchange rates, this translates to roughly Rs 3,300 to Rs 6,700 per gram, he said.According to the official, the network allegedly used several methods to conceal the narcotics and obscure the identities of those behind the operation. Opium was concealed beneath silver-foil false bottoms inside cartons containing food items or, in some instances, inside garments.Forged KYC documents and fictitious consignor details were allegedly used to book consignments in names of unsuspecting persons. The parcels were routed through multiple intermediaries to obscure the identity of handlers.The accused allegedly communicated through encrypted applications, while proxy bank accounts and UPI channels were used to move proceeds and meet operational expenses.Digital and financial evidence helped investigators identify communications, consignees and transactions linked with the syndicate, police said.The probe has also established involvement of Arshdeep Singh Gill alias Arsh Dalla, a native of Punjab’s Moga, who fled to Canada in 2018. He was designated terrorist under the Unlawful Activities (Prevention) Act in January 2023, and is among the top leaders of Khalistan Tiger Force, a proscribed pro-Khalistan terrorist organisation.Dalla was arrested by Canadian authorities in Ontario in November 2024, and the Indian government has been pursuing his extradition.The Crime Branch said the role of Dalla, his foreign-based handlers and other absconding conspirators is being investigated. Efforts are underway to trace the complete financial trail, identify additional operatives and dismantle the alleged drugs-for-weapons nexus.