ED to send LR to US for details on suspected links between drug syndicates

ED suspect that the local syndicate could have been one of the suppliers from India to the US-based syndicate & the US authorities could provide it with details to verify via the LR, which is sent via courts

The Enforcement Directorate (ED) will send a Letters Rogatory ( LR) --- a formal request---- to the United States authorities to seek details on suspected financial transactions or ties between a US-based illegal network specialising in the import of misbranded controlled substances, including synthetic opioid pills like Tramadol, and a Mumbai-based drugs syndicate under its money laundering probe linked to the seizure of synthetic contraband worth over ₹7 crore in Mumbai last March.

ED is also keeping a check on certain licensed dealers of scheduled drugs in cities like Chennai and Lucknow. (Representative file photo)

According to people aware of the matter, ED suspect that the local syndicate could have been one of the suppliers from India to the US-based syndicate and the US authorities could provide it with details to verify any such connection via the LR, which is sent via courts.

ED is also keeping a check on certain licensed dealers of scheduled drugs in cities like Chennai and Lucknow who could have illegally sold such consignments to the trafficking syndicates, the above people said.

Eight alleged members of the US-based syndicate, including Ezhil Kamaldoss, were arrested by US authorities in 2019 and charged before a Brooklyn court for importing millions of misbranded prescription pills/opioids into the US from India and distributing the harmful substance through the US Mail and other commercial couriers.

In June 2022, a federal jury in Brooklyn had returned a guilty verdict against Kamaldoss on all counts of a superseding indictment, charging him with conspiring to distribute millions of opioid pills and other illegal controlled substances imported from India and money laundering conspiracy, the above people added.

ED began its money laundering probe based on a Mumbai police case related to the alleged seizure of a synthetic contraband Ketamine worth around ₹7.87 crore, and 23,410 strips of a prohibited drug worth ₹58.31 lakh, in course of searches carried out at a courier office in Andheri (east) last March.

The probe had revealed that the Ketamine had been allegedly procured from Gujarat. Mumbai police had arrested seven accused in the case, including Ali Shirazi in May last year, after which the ED took his custody on January 5 this year on a special court’s order.

The seized contraband and the prohibited drug of March last year were allegedly meant to be smuggled to Australia and the United Kingdom.

ED’s probe revealed that the Mumbai-based syndicate allegedly ran a network of companies, including firms incorporated in the United States (US) that ran payment gateways, to facilitate the shipment of opioids there and the routing of the sale’s proceeds back to India, people aware of the developments in the federal agency said.

ED’s investigation revealed that the drug syndicate also allegedly operated telecommunication companies running call centres/websites, logistic companies, consultancy companies and dummy pharma companies, wherein illegal shipping of opioids from India to foreign countries and routing of the proceeds of the sale of the same to India using various channels was done.

The agency found that there were huge cash deposits allegedly in the accounts linked to a syndicate member and related persons/entities, which seemed like illegal money earned via selling of various drugs like ketamine.

The agency had conducted searches at 13 locations in Mumbai, Ahmedabad, Delhi and Lucknow on January 17.

During the searches, ED seized a total of ₹2.17 crore in Fixed Deposit Receipts and cash.

Further, several digital devices including mobile phones and laptops and incriminating documents related to properties and records of transactions related to opioid medicines were also seized by the agency.

It had earlier seized cash of ₹62.61 lakh and valuables, digital devices and other incriminating records in October 2023.