Codeine syrup nexus: 454 suspected firms surface as ED searches continue in UP, two other states
The searches, which began early Friday, follow the registration of an Enforcement Case Information Report nine days ago against 67 accused under Prevention of Money Laundering Act
The Enforcement Directorate (ED) on Saturday continued its searches for the second consecutive day at multiple locations across Uttar Pradesh, Jharkhand and Gujarat in connection with the codeine-based multi-crore cough syrup diversion racket as investigators suspect involvement of nearly 454 additional firms and their operators in the syndicate.
According to official sources, the ongoing searches have resulted in the recovery of a substantial volume of documents and digital evidence, including details of suspicious financial transactions. The newly recovered material has revealed the possible role of several companies and individuals who were not previously identified.
The searches, which began early Friday morning, follow the registration of an Enforcement Case Information Report (ECIR) nine days ago against 67 accused under the Prevention of Money Laundering Act (PMLA).
On the Ranchi premises of alleged kingpin Shubham Jaiswal and his father Bhola Prasad, officials recovered documents related to 189 firms, many of which prima facie appear to be shell entities. These firms were allegedly used to project illicit transactions as legitimate trade and to divert pharmaceutical drugs. The flow of funds generated through these entities is now under scrutiny.
Searches conducted on the premises of chartered accountant Vishnu Aggarwal, who allegedly managed financial transactions for the syndicate, led to the seizure of records linked to 140 firms. Investigators are examining how many of these entities were bogus and whether they were used for layering and laundering proceeds of crime.
In Saharanpur, the ED searched the residential and office premises of alleged network operator Vibhor Rana and his aides. Investigators found evidence suggesting use of 125 firms for diversion of cough syrup, with their bank accounts allegedly used to collect and transfer illicit funds.
In Ahmedabad, the ED searched the premises of M/s Aarpik Pharmaceuticals Pvt Ltd and its sister concern M/s Idhika Life Sciences, where similar patterns of trading through shell entities were detected.
Officials said the findings indicate that the diversion of codeine-based cough syrup was part of a well-organised, multi-state operation, rather than isolated cases of medical misuse. Fake and shell companies were allegedly floated to facilitate large-scale interstate movement of the syrup.
Documents recovered from Ahmedabad and Surat suggest that consignments were dispatched using forged pharmaceutical supply invoices. Investigators believe the syndicate relied on layered financial transactions, hawala channels and bogus billing mechanisms.
Sources indicated that the financial trail points to a network operating for over five years, with deep roots across several states. Several firms and individuals named in the seized documents do not figure in any previous FIRs or police records. A forensic audit of bank accounts linked to suspected shell companies has also been initiated to trace transactions involving several crores of rupees.
Sacked constable’s sprawling bungalow under scanner
The ED on Saturday intensified its money laundering probe by searching the residence of dismissed police constable Alok Pratap Singh, one of the key suspects in the case, in Lucknow.
During the search, ED officials measured Singh’s sprawling bungalow, spread over nearly 7,000 square feet and estimated to be worth over ₹5 crore. Investigators suspect the property to be proceeds of crime and have sought details regarding Singh’s sources of income. Investigators found that approximately ₹1.5 to ₹2 crore in cash was allegedly spent on the bungalow’s interior work alone, the valuation of which has already been completed.
Officials said the agency is likely to initiate attachment proceedings against the property under the PMLA if the accused fails to provide a satisfactory explanation. The search also led to the recovery of several luxury items, including bags and watches of premium brands. An ED official confirmed that further action will be taken based on the analysis of seized materials and financial records as the probe continues.
