A Chennai-based pharmaceutical distributor and business associate of alleged interstate counterfeit drug racket kingpin Prashanth Rajanbabu was arrested by the Karnataka Special Investigation Team (SIT), becoming the seventh person taken into custody in the case.
The accused, Balasubramanian, was brought to Bengaluru for questioning on Wednesday. He was a partner in DM Pharma, the pharmaceutical distribution company set up by Rajanbabu, his wife and Balasubramanian in 2021.
His arrest followed the interrogation of Rajanbabu, who was taken into custody at Kempegowda International Airport on Monday after arriving in Bengaluru. Balasubramanian was remanded to seven days of SIT custody.
Deep Dive
What role did Balasubramanian play in the counterfeit drug racket in Karnataka?
Why was DM Pharma under investigation by the Karnataka authorities?
How did the counterfeit drug distribution network operate in Karnataka?
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“We suspect that Balasubramanian received consignments of counterfeit medicines from Rajanbabu and another accused, Veeresh, and distributed them in Chennai and other locations. We are examining the movement of these consignments, the financial transactions linked to them and the companies used in the distribution chain,” a senior officer said.
DM Pharma, based in Chennai, supplied medicines to hospitals and drug stores. Investigators suspect the company was used to move counterfeit medicines alongside genuine products, allowing the fake stock to pass through the regular pharmaceutical supply chain without attracting immediate attention, the officer added.
{{/usCountry}}DM Pharma, based in Chennai, supplied medicines to hospitals and drug stores. Investigators suspect the company was used to move counterfeit medicines alongside genuine products, allowing the fake stock to pass through the regular pharmaceutical supply chain without attracting immediate attention, the officer added.
{{/usCountry}}The SIT is also examining another company allegedly operated by Balasubramanian and its possible role in the distribution of the counterfeit medicines.
Investigators have widened their inquiry to hospitals that purchased medicines from those linked to the case. Notices have been issued seeking details of their purchases, while the SIT is examining the roles of dealers, distributors and buyers in the supply chain.
The case began with the seizure of counterfeit medicines, machinery, packaging material and other stock from an alleged illegal manufacturing facility near Bidadi. The Karnataka Food Safety and Drugs Administration department subsequently cancelled the licences of 16 drug wholesalers and retailers over their alleged involvement in the distribution and sale of counterfeit medicines. The licences of eight establishments were also suspended.
Rajanbabu, who is from Shivamogga and lives in Papareddypalya in Bengaluru, was arrested a day before his associate was nabbed. Officials said he had worked as a medical representative in New Delhi, Hyderabad and Chennai for more than 10 years before establishing DM Pharma.
According to investigators, Rajanbabu had knowledge of medicines in high demand, their market prices and profit margins. They allege that he later began manufacturing counterfeit medicines after identifying an opportunity to make large profits.
A farmhouse near Tavarekere in Bengaluru south district was allegedly rented in 2025 for manufacturing the fake medicines. Raw materials were brought from Uttarakhand and other states, officials said.
The counterfeit products allegedly carried the names of established pharmaceutical companies and were supplied to hospitals and drug stores through organisations including Krupa Pharma.