Hyderabad E-Cigarette Bust: Police have discovered an online delivery network allegedly supplying banned e-cigarettes to software employees and students across Madhapur, Gachibowli and HITEC City.
A heavy crackdown in Hyderabad’s IT corridor has uncovered an underground network that supplies banned e-cigarettes and cigarettes to young professionals and students through online orders and third-party delivery platforms. Eagle Force police seized banned cigarette stock worth around Rs 1.5 crore and arrested two people, identified as Abubakkar and Rameez in connection with the operation.
What has caught attention is not just the size of the seizure but the way the alleged network operated. Instead of operating a store or approaching customers directly, the accused were said to have relied on WhatsApp and Instagram to receive orders. Delivery was then arranged on platforms such as Rapido and Porter so that sellers had distance from customers and delivery staff.
According to the preliminary investigation, Rameez alone allegedly conducted business worth Rs 1.5 crore in a month. That number has pointed to the high demand for prohibited tobacco and vaping products in Hyderabad’s rapidly growing technology and student hubs.
Who were the supposed customers?
Police investigations indicate that the network was primarily targeting software employees, students and young professionals in Madhapur, Gachibowli and HITEC City. These are the areas of high concentration of technology companies, paying-guest accommodation, apartments, educational institutions and a young working population.
The business model appears to have attracted customers to pay a big price for products that are illegal in India. Without selling products on the street or through a physical retail place, the network did so via social media and messaging channels to get the word out to prospective buyers.
Orders were placed on WhatsApp and Instagram, after which the products were sent to customers at offices, PG accommodation and residential apartments.
How Were The Products Delivered?
The investigation has revealed an unusual delivery mechanism. Once the order is received, Rapido or Porter services are hired to transport the packages.
The delivery personnel, according to the investigation, were apparently unaware of what the packages contained. This allowed the alleged sellers to avoid direct contact with customers and use legitimate logistics and bike-delivery services to move the products around the city.
The arrangement also meant that there was no shopfront, warehouse-to-customer interaction or direct handover by the sellers. Customers could place orders remotely and receive the products at their preferred location.
The use of third-party delivery services could have contributed to the operation in that it provided separation between the alleged sellers and buyers. But investigators are now reviewing the entire chain to determine how extensive the model was and whether any more people were involved.
Where did the Stock come from?
Police observed that the banned products were being brought into Hyderabad from Delhi and other states. The cigarettes were purchased at relatively low prices outside Telangana and then sold at much higher rates in Hyderabad due to the ban and continuing demand.
Investigators are now looking at the alleged interstate supply chain. One of the key questions is who was supplying the products from Delhi and other states and whether the Hyderabad operation was connected with a larger network across multiple cities.
The investigation will also define the role of other people in transportation, storage, online sales and distribution.
Growing Concern Over Online Sale Of Banned Products
The case also demonstrates how online communication platforms and on-demand delivery services can be misused to create informal distribution networks. Social media platforms can allow sellers to reach specific groups of customers without having to be visible to them, and delivery apps can be a convenient way to move packages around the city.
Are Hyd IT employees ordering banned e-cigarettes via Rapido?
— Sudhakar Udumula (@sudhakarudumula) September 3, 2026
A major bust in Madhapur has exposed a new delivery trend in the IT corridor.
Eagle Force police seized banned cigarettes worth Rs 1.5 crore and nabbed two - Abubakkar and Rameez. Probe revealed accused Rameez alone… pic.twitter.com/Hb4dlM1WVb
For Hyderabad’s IT corridor, the case is particularly important because Madhapur, HITEC City and Gachibowli have a huge population of young professionals and students. The police are likely to investigate whether the alleged network provided customers outside these locations, and if there are similar sellers in other parts of the city.
The seizure of Rs 1.5 crore and the alleged monthly turnover of Rameez shows the scale of the operation under investigation. Now, the authorities are trying to identify the wider supply network and how the banned products entered Hyderabad.
The investigation is still ongoing and more arrests or seizures could follow as police track the alleged interstate suppliers and the other members of the supply chain to which they are connected and find them.