In a major crackdown on narcotics trafficking, the Enforcement Directorate (ED) has uncovered a sprawling racket involving the illegal diversion and sale of codeine-based cough syrup. The probe has revealed that the prime accused, Shubham Jaiswal, allegedly earned a staggering Rs 800 crore by supplying the narcotic-laced syrup to traffickers in West Bengal and Bangladesh.
The Mechanics of a Multi-Crore Racket
Operating through his firm, Shaili Traders, Shubham Jaiswal is accused of supplying approximately 2.24 crore bottles of cough syrup into the illicit network. Investigators state that each bottle was sold for around Rs 500 to smugglers based in West Bengal, from where the consignments were primarily destined for Bangladesh. To procure the syrup, Jaiswal allegedly paid nearly Rs 312 crore to Abbott Pharmaceuticals. The funds for these purchases are suspected to have originated from close associates, including influential figures.
The scale of the operation suggests it was not a recent venture. Officials believe the illegal diversion of medicinal syrup for narcotics trafficking has been operational for nearly a decade. The recent seizure of eight batches in West Bengal by the Border Security Force (BSF) and the Narcotics Control Bureau (NCB), based on documents showing diversion, brought the racket to light.
Nationwide Raids and Widening Probe
In December, the ED launched coordinated raids across 25 locations nationwide. The searches targeted factories, warehouses, and residences linked to arrested individuals and their associates. In Uttar Pradesh, premises in Jaunpur, Aligarh, Lucknow, Saharanpur, Varanasi, and Ghaziabad were raided. Parallel operations were conducted in Ranchi (Jharkhand) and Ahmedabad (Gujarat), identified as key hubs for the illegal manufacturing, bottling, and diversion of these syrups.
The money-laundering investigation is now the cornerstone of a full-fledged financial probe into the racket. The ED is examining illegal sales, forged stock entries, fake billing, and complex benami distribution chains used to generate and hide crores of rupees.
Pharmaceutical Companies Under Scanner
The investigation has significantly widened, with the ED seeking detailed information from over a dozen pharmaceutical companies. These include major firms like Abbott, Lupin, Vardhman Pharma, Aristo Pharma, and Vishwanath Pharma. The agency has asked for comprehensive records of their supply chains, sales volumes, and financial transactions over the past 10 years, with a specific focus on consignments of codeine-containing cough syrups supplied to the accused in this case.
This data will be meticulously analyzed to pinpoint irregular supply patterns, inflated orders, suspicious buyers, and the possible laundering of proceeds from the cross-border smuggling network. Meanwhile, the investigation has established that Jaiswal was introduced to West Bengal-based smugglers Vibhor Rana and Vishal Singh. Their links are now being traced to Asif of Meerut, who is suspected to be a crucial node in the entire trafficking chain.
In response to the scandal, Uttar Pradesh authorities have ordered a fresh verification of all wholesale drug licences in the state. The prime accused, Shubham Jaiswal, remains on the run as the net tightens around one of the largest cough syrup smuggling rackets uncovered in recent times.
