Karim Lala, Haji Mastan, and Varadaraja Mudaliar adhered to the unwritten codes of conduct within the confines of their respective criminal empires. In their arsenal, the tools of coercion were limited to threats and force, with the use of a knife being a rarity.
In the wake of stringent restrictions imposed on the Indian economy, the Mumbai underworld underwent a transformative shift, giving rise to a parallel economic system. The dons, in this altered landscape, wielded authority by enforcing their own set of rules, engaging in the smuggling of gold and foreign goods. The symbiotic relationship between smuggling and the underworld became unmistakable, with each element mutually reinforcing the other. The decline of the textile sector in the 1980s served as a catalyst, further fueling the underworld's expansion and influence.
In 1986, Karim Lala's son-in-law Samad Khan was fatally shot by Ramabhai Naik, marking a turning point in the course of Mumbai’s underworld. Subsequently, a new generation of leaders, including Dawood Ibrahim, Chhota Rajan and Chhota Shakeel, emerged prominently on the scene. The strengthening influence of Tiger Memon and Abu Salim played a pivotal role in propelling D Company to the forefront, making it the most formidable among the third-generation gangs.
The evolution of these gangs gave rise to intensified gang wars, characterized by fierce rivalries and power struggles among the emerging leaders. This period also set the stage for a new chapter in the underworld's complex and often tumultuous history.
Underworld gets a modern face
The onset of globalization and liberalization in the early 1990s brought about a transformative shift in the Indian market. Liberalized import policies resulted in a decline in import tax on gold, causing profits from smuggling the precious metal to plummet. Prior to 1992, an annual average of 198 tns of gold was being smuggled into India. With this avenue abruptly closed, underworld gangs sought alternative lucrative ventures, and drug trafficking emerged as a highly profitable option. This shift paved the way for the involvement of organized crime in the illicit and dirty business of narcotics.
The abundance of cannabis cultivation in Afghanistan, coupled with the legal processing of it into heroin in Karachi, created an opportunity for illicit activities. During that time, it was estimated that 1 kg of heroin could be produced in Pakistan for Rs 2 lakh. This heroin, when transported to Mumbai, packaged and delivered to the European market, was projected to fetch Rs 1 crore!
The route from Afghanistan to Karachi posed relatively fewer challenges for smuggling operations. However, the real challenge lay in transporting the illicit materials from Karachi to Mumbai and further to destinations like the UK, France, Germany, Austria, the Netherlands, Ghana and Nigeria. Despite the risks involved, the Mumbai underworld, drawing upon its wealth of experience in gold smuggling, ventured into the heroin trade, investing its expertise in navigating the intricate and perilous routes of narcotics trafficking.
The drug retail business swiftly evolved into a wholesale enterprise, and within a span of five years, D Company's annual turnover soared beyond Rs 2,000 crore. The training provided by the Liberation Tigers of Tamil Eelam (LTTE) proved immensely valuable, encompassing various aspects, including sophisticated packing techniques. The Tamil Tigers shared their expertise, teaching them innovative methods such as smuggling heroin inside oranges, juice cans and even within the embroidered work of salwar kameez.
Arms trade under LTTE guidance
The association with Kumaran Padmanabhan, the primary arms dealer of the Tamil Tigers, granted D Company an unparalleled level of firepower. During the 1990s, it stood as the sole Indian gang utilizing AK-56 guns and automatic rifles, giving it a significant advantage over other criminal organizations. In a reciprocal arrangement, Dawood provided assistance to the LTTE in the arms trade. D Company played a crucial role in ensuring the secure delivery of weapons from the Tamil Tigers to Ahmad Shah Masood in Afghanistan, showcasing the intricate and far-reaching connections in the global underworld.
The engagements with the LTTE and Ahmad Shah Masood's group not only solidified the Dawood group's connections but also drew them closer to a network of terrorist organizations, spanning from Lashkar-e-Toiba to figures like Osama bin Laden and Al-Qaeda. D Company expanded its influence by extending financial and weapon support to these groups. The lower-tier members were tasked with money collection, contract killings and hawala operations, and the profits generated were funneled back into drug trade.
Decentralization of power
D Company's operational structure was strategically designed, featuring a multi-tiered system involving four layers of middlemen between the top leadership and the final link in the chain. This intricate setup often shielded the upper echelons from legal repercussions, as it was typically individuals at the lowest rung who were apprehended by law enforcement. D Company seamlessly operated as a seemingly legitimate export company, establishing a global presence with representatives, agents and sub-agents across the world. This sophisticated and well-organized structure allowed the criminal enterprise to continue its activities while maintaining a façade of legitimacy.
When Dawood Ibrahim moved to Dubai, the oversight of industries in Mumbai fell under the purview of Chhota Shakeel. Following the shift of Dawood's headquarters to Karachi, his younger brother Anis Ibrahim assumed responsibility for operations in Dubai.
Subsequently, Mumbai was divided into approximately a dozen zones, each entrusted to small businessmen, telephone booth owners and exporters who had no direct ties to the underworld. This decentralization allowed the junior members of D Company to autonomously plan local crimes without direct orders from Dubai or Karachi. Goons from Uttar Pradesh were often hired for these operations. Dawood, operating as an invisible force, eluded the reach of the law, particularly as his income did not flow through international channels.
The image don has etched
For Dawood, earning someone's loyalty is one of the most challenging tasks in the world. Despite this difficulty, the Don possesses wealth not only in financial terms but also in the allegiance of his team. He maintains a substantial following, with individuals eager to receive orders from him, even if it were for taking someone's life. Dawood has carefully cultivated an image of being a gracious host, waiting to partake in a meal only after his guests have been seated. He is known for his generosity, often providing amounts exceeding what people initially request. However, within Dawood's realm, the singular punishment for insolence and betrayal is death.
Dawood's life has been marked by opulence, residing in a palace adorned with a swimming pool, tennis court, snooker room and a state-of-the-art gymnasium. His daily routine unfolds in regal fashion, waking up at noon and engaging in activities such as swimming and bathing before sharing meals with companions and managers. Following this, he dedicates time to receive reports, issue orders and eventually socialize with friends. Occasionally, there's a brief interlude for a snooker game.
Once outside the palace, Dawood dons designer clothes and accessorizes with a lavish watch, stepping into a luxury car. His evenings are characterized by lavish parties that extend until dawn, featuring indulgences like gambling, mujra performances and the company of young women. His is a world where excess and luxury are the norms.
(The underworld’s interest extends beyond Bollywood and cricket. More on that in the next part.)