BENGALURU: The Directorate of Enforcement (ED), Bengaluru, has conducted searches in connection with a counterfeit medicine racket involving the repackaging and relabelling of generic medicines as expensive branded antibiotics, including Pfizer products. During searches at five premises linked to the accused, the agency froze bank accounts containing around Rs 9 lakh and seized digital devices, records and other incriminating documents.The searches were conducted under the Prevention of Money Laundering Act (PMLA) as part of an ongoing money-laundering investigation arising from an FIR registered at Tavarekere police station in Bengaluru South district on Aug 18.The case relates to a joint search operation conducted by the Drug Controlling Authority and police personnel on Aug 18 at a residential property in CK Tandya village. During the raid, the accused were allegedly found storing medicines and pharmaceutical drugs without valid licences, permits or authorisations and replacing the labels on the stored medicines.The case was registered under Section 318(4) (cheating) of the Bharatiya Nyaya Sanhita (BNS) and Section 63 of the Copyright Act. These offences are scheduled offences under the PMLA. Subsequently, the ED recorded an Enforcement Case Information Report (ECIR) and initiated an investigation under the anti-money laundering law.
Farmhouse used to repackage medicines
The investigation revealed that the accused, R Prashanth alias Prashanth Rajan Babu alias Prashanth Doreswamy, a medical representative, had arranged a farmhouse near Bidadi to manufacture, repackage and relabel medicines without a drug licence or permit.Cheap bulk formulations sourced from manufacturing centres in various states were allegedly repackaged into new vials and fraudulently relabelled as expensive Pfizer antibiotics, including Zavicfta and Emblaveo.Although the vials contained generic medicines, they carried Pfizer-branded labels. The medicines were then distributed through M/s DM Pharmaceuticals and supplied to M/s Krupa Healthcare.M/s Krupa Healthcare subsequently supplied the medicines to other pharmaceutical companies and hospitals along with genuine medicines to avoid detection.
Rs 9 lakh frozen, documents seized
During the searches, the ED froze bank accounts containing around Rs 9 lakh belonging to the accused, Veeresh Kumar Jain alias Veeresh Kumar, owner of M/s Krupa Healthcare near Minerva Circle in Bengaluru.The agency also seized digital devices, records and other incriminating documents belonging to various individuals. The Special Investigation Team and the Drug Control Authority had earlier seized drugs worth nearly Rs 4.9 crore.
