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ED uncovers ₹22 crore transaction in codeine syrup nexus
Officials said she had initially sought 10 days to respond, but has now been asked to appear at the ED headquarters within two to three days, along with relevant documents. Investigators are examining whether the money allegedly represents proceeds of crime generated through illegal trafficking of codeine-based cough syrup.
The Enforcement Directorate (ED) has traced another ₹22 crore financial transaction linked to the alleged multi-crore codeine-based cough syrup trafficking racket, flagging a transfer from Shaili Traders, a firm connected to alleged kingpin Shubham Jaiswal, to a Varanasi-based construction company, officials said.
The agency has issued a notice to the woman builder who owns the construction firm, directing her to appear before the ED and record her statement regarding the source and purpose of the transaction. Officials said she had initially sought 10 days to respond, but has now been asked to appear at the ED headquarters within two to three days, along with relevant documents. Investigators are examining whether the money allegedly represents proceeds of crime generated through illegal trafficking of codeine-based cough syrup.
According to officials, Shaili Traders was floated by Shubham in the name of his father Bhola Jaiswal, who is currently lodged in Sonbhadra jail. The firm is suspected of having been used as a front to launder money from the illegal syrup trade. Scrutiny of its bank accounts revealed multiple high-value transactions, including the ₹22 crore transfer now under investigation.
The ED has already registered a case under the Prevention of Money Laundering Act (PMLA) against Shubham, dismissed constable Alok Pratap Singh, Amit Singh alias Tata, Vibhor Rana and other accused. The agency is tracing movable and immovable assets linked to the accused and scrutinising bank transactions of their associates and related entities.
The agency is also examining the funding behind a high-value property owned by Alok Singh. After assessing the property’s valuation, officials recorded his statement inside jail and later questioned his wife for two consecutive days. Officials said the money trail is expanding, with several businessmen, political figures and other individuals surfacing during the probe.
On January 13, 2026, Red Corner Notices were issued against Shubham Jaiswal and his associate Aakash Pathak after the special investigation team approached the Central Bureau of Investigation seeking international action against the absconding accused. Investigators said Jaiswal allegedly fled to Dubai with his family and associates as the case gathered momentum, and Pathak is also believed to be hiding there.
Multiple FIRs linked to the alleged illegal trafficking of codeine-based cough syrup have been registered in Lucknow, Ghaziabad, Varanasi, Ghazipur and Sonbhadra.
The Uttar Pradesh government constituted a special investigation team on December 9, 2025, under the leadership of LR Kumar, inspector general, to investigate the racket. Officials said the SIT has widened the scope of the probe to examine international links, fast-track extradition of the prime accused and identify all those allegedly involved in the syndicate.
