The Enforcement Directorate has frozen bank accounts containing around Rs 9 lakh and seized digital devices, records and other documents during searches linked to an alleged counterfeit-medicine racket in Bengaluru, in which generic medicines were allegedly repackaged and relabelled as expensive branded antibiotics.
The ED Bengaluru searches were conducted at five premises under the Prevention of Money Laundering Act as part of an investigation arising from an FIR registered at Tavarekere police station in Bengaluru South district on August 18. The case followed a joint operation by the Drug Controlling Authority and police at a residential property in CK Tandya village.
According to the investigation details reported by the agency, medicines and pharmaceutical drugs were allegedly stored without valid licences, permits or authorisations. The accused were also allegedly found replacing labels on the stored medicines. The FIR invokes Section 318(4) of the Bharatiya Nyaya Sanhita, relating to cheating, and Section 63 of the Copyright Act. The offences are scheduled offences under the anti-money laundering law, allowing the ED to register an Enforcement Case Information Report and begin its investigation.
The agency’s investigation has identified a farmhouse near Bidadi as an alleged site used to manufacture, repackage and relabel medicines without a drug licence or permit. The ED said R Prashanth, also known as Prashanth Rajan Babu and Prashanth Doreswamy, a medical representative, had arranged the farmhouse for this activity.
Cheap bulk formulations allegedly sourced from manufacturing centres in different states were repackaged into new vials and relabelled as expensive Pfizer antibiotics, including Zavicfta and Emblaveo. Although the vials allegedly contained generic medicines, they carried Pfizer-branded labels, according to the investigation details. The products were then allegedly distributed through M/s DM Pharmaceuticals and supplied to M/s Krupa Healthcare.
The ED said M/s Krupa Healthcare later supplied the medicines to other pharmaceutical companies and hospitals along with genuine medicines, allegedly to avoid detection. The account freeze was linked to Veeresh Kumar Jain, also known as Veeresh Kumar, identified as the owner of M/s Krupa Healthcare near Minerva Circle in Bengaluru.
The case places the alleged activity across multiple points in the city’s pharmaceutical supply chain: sourcing, repackaging, distribution and institutional supply. The presence of a farmhouse near Bidadi as an alleged repackaging location and the reported movement of the medicines through pharmaceutical businesses indicate the enforcement challenge involved in tracing products after they enter regular commercial channels.
The Special Investigation Team and the Drug Control Authority had earlier seized drugs valued at nearly Rs 4.9 crore, according to the report. The latest searches have added financial records, digital devices and other documents to the investigation. The ED’s inquiry remains ongoing, and the allegations are subject to the legal process.
