Delhi: Fake medicine, GST firm busted; six arrested

Delhi Police arrested six for running a counterfeit medicine racket, seizing 120,000 fake tablets and uncovering a fake GST firm network worth ₹50 crore.

The cyber cell unit of the crime branch busted an interstate racket and arrested six people involved in manufacturing, storing, and distributing counterfeit medicines, Delhi Police officials said on Sunday.

During the operation, they also busted a fake GST firm network worth ₹50 crore, used to generate counterfeit invoices, police said.

An illegal manufacturing unit located in Muzaffarnagar, Uttar Pradesh, and involved in production of counterfeit medicines was also busted, officials said, adding that a fake GST firm network worth ₹50 crore, used to generate counterfeit invoices was also busted.

According to police, the arrests were made between March 12 to 27, and around 120,000 counterfeit tablets and capsules were seized from Delhi and Loni in Uttar Pradesh. Of the total seized medicines, nearly 40,000 tablets and capsules were recovered from a 15-foot-deep pit made by the accused. On March 29, Inspector Manjeet Kumar of the cyber cell and his team members located the spot, excavated the land and recovered the counterfeit medicines, senior officers said.

Deputy commissioner of police (DCP) (crime, cyber cell) Aditya Gautam said that the arrested were identified as Nikhil Arora, 40, who runs a wholesale medicine shop at Bhagirath Palace in north Delhi’s Chandni Chowk; Shivam Tyagi, 26; Mayank Aggarwal, 42; and Mohit Kumar Sharma, 30, who are suppliers of counterfeit medicines; Shahrukh, 38, and Rahul, 36, both suppliers of ready-made GST firms and fake billing services.

DCP Gautam said the operation began following a raid on Arora’s property in Delhi’s Bihari Colony, Shahdara, on March 11. During the raid, police recovered a total of nearly 85,000 counterfeit tablets and capsules, including widely used medicines such as Rabemac-DSR, Telma-AM, Sporolac-DS, Signoflam, Chymoral Forte, Ursocol-300, CCM, Ketorol-DT, Gemcal, Gluconorm series, Jalra-50, Moxovas, Glycomet, Amlovas-AT, Disperzyme, Glimisave, Drotin-M, Naxdom-500, Bio-D3 Plus, Gabapin-NT, and Montair-LC.

“These medicines–commonly prescribed for diabetes, hypertension, infections, liver disorders, and inflammation–pose serious health risks if counterfeited. Arora was arrested and his interrogation revealed the existence of a well-organised fake GST firm racket, which played a crucial role in facilitating the illegal drug trade,” said DCP Gautam.

DCP Gautam said the racketeers supplied counterfeit medicines using fake invoices generated through GST firms that existed only on paper. These firms were created to conceal actual business operations, evade tax and provide legitimacy to illegal transactions.

“Payments and supply chains were routed through these entities. Our team identified and arrested Shahrukh and Rahul, who operated the network through Telegram and WhatsApp,” the DCP said.

Police said the duo’s mobile phones showed details of numerous shell GST firms, fake invoices amounting to approximately ₹50 crore, and links to multiple beneficiaries across states.

Meanwhile, drug authorities and the concerned pharmaceutical companies confirmed that the seized medicines were counterfeit—not manufactured or supplied by authorised companies. Furthermore, the premises where the medicines were kept lacked valid licenses for storage or sale.

Further probe led to the arrest of the remaining three suppliers–Shivam Tyagi, Mayank Aggarwal and Mohit Kumar Sharma. Aggarwal was allegedly previously involved in two similar cases: one filed by the Narcotics Control Bureau (NCB) in 2013, and the second registered at Murad Nagar police station in Uttar Pradesh’s Ghaziabad on January 3 this year, said an investigator associated with the case.

“Sharma’s interrogation led us to an illegal pharmaceutical manufacturing unit in Muzaffarnagar, Uttar Pradesh, operated by Mohammad Aqdas Siddiqui, who was absconding when we raided the premises, spread over 1000 square yards. Nearly 2,000 kg of raw materials, 10,000 empty CCM bottles and machines used in the production were seized,” the officer added.