The Enforcement Directorate has searched five premises in Bengaluru in an alleged counterfeit medicine racket, freezing bank accounts containing around Rs 9 lakh and seizing digital devices, records and other documents, according to the agency’s investigation reported by the Times of India. The searches were conducted under the Prevention of Money Laundering Act in connection with a money-laundering probe arising from an FIR registered at Tavarekere police station on August 18.
The Bengaluru fake drug case centres on allegations that generic medicines were repackaged and relabelled as expensive branded antibiotics, including Pfizer products. The medicines named in the report include Zavicfta and Emblaveo. The Enforcement Directorate said the accused allegedly arranged a farmhouse near Bidadi to manufacture, repackage and relabel medicines without a drug licence or permit.
During a search at a residential property in CK Tandya village, investigators allegedly found medicines and pharmaceutical drugs stored without valid licences. The medicines were reportedly sourced as cheaper bulk formulations from manufacturing centres in different states before being placed in new vials and given labels representing higher-priced antibiotics.
The investigation has named R Prashanth, also identified as Prashanth Rajan Babu and Prashanth Doreswamy, a medical representative. According to the report, the alleged repackaged medicines were distributed through M/s DM Pharmaceuticals and supplied to M/s Krupa Healthcare. Krupa Healthcare subsequently supplied medicines to other pharmaceutical entities and hospitals along with genuine products, an arrangement investigators believe was intended to avoid detection.
The Enforcement Directorate also froze accounts belonging to Veeresh Kumar Jain, also identified as Veeresh Kumar, who owns M/s Krupa Healthcare near Minerva Circle in Bengaluru. The agency said the accounts held around Rs 9 lakh. Digital devices, business records and other documents were seized during the searches for further examination.
The case adds a financial-investigation layer to an earlier enforcement action by a special investigation team and the drug control authority. Those agencies had previously seized medicines valued at close to Rs 4.9 crore, according to the report. The latest searches are being conducted as part of the continuing investigation into the alleged supply and circulation of the medicines.
The allegations have not been tested in court, and the accused remain entitled to due process. The immediate investigation will focus on the seized records and devices, the movement of medicines through the named entities, and the financial transactions connected with the alleged repackaging and distribution network. The Enforcement Directorate’s next steps will determine the wider extent of the supply chain identified in the case.
