The Enforcement Directorate has initiated a money laundering investigation into a large-scale operation involving the illegal sale of codeine-laced cough syrup, estimated at Rs 100 crore.
The Enforcement Directorate has filed a money laundering case in connection with a multi-state racket involving the illegal distribution and sale of codeine-laced cough syrup, a restricted pharmaceutical drug, said sources.
It has been estimated that an organised racket to the tune of Rs 100 crore involving shell companies and fake billing and forged medical records was operating across UP and other states.
The federal probe agency has issued an urgent summons for Subham Jaiswal, the alleged mastermind of the syndicate, directing him to join the investigations on December 8. Subham Jaiswal has been missing since the crackdown began.
Earlier in the day ED officials visited Jaiswal’s residence in Varansi and served copies of summons to his family. The ED case stems from bunch of FIRs filed in UP.
On November 30, Subham Jaiswal’s father, Bhola Jaiswal, was arrested at Kolkata’s international airport as he was attempting to flee India. He was subsequently handed over to the U.P. Police and is facing charges, along with his son, for allegedly selling restricted or prohibited pharmaceutical drugs.
The crackdown on the organized syndicate began with a series of raids across Uttar Pradesh between October and November by the state government’s Food Safety Drug Administration. The operation was launched after a truck was seized in October, leading to uncovering of an elaborate network web of shell companies and fake billings said sources
On November 23, UP Police filed an FIR against owners of 12 medical owners and 2 others for selling codeine laced cough syrups. The complainant in the case was drug inspector Uttar Pradesh.
Inspection by drug department revealed that illegally 37 lakh bottles of codeine based cough syrup worth crores were sold through a dozen medical stores. The value was around Rs 55 crores.
