ED attaches assets and freezes bank account in Bengaluru medicine racket
The agency conducted searches at five locations following allegations that counterfeit drugs were being repackaged and sold as expensive brands.
The Directorate of Enforcement (ED) conducted searches at five premises in Bengaluru connected to an alleged counterfeit medicines racket, according to The Hindu. The agency also froze a bank account belonging to Veeresh Kumar containing approximately ₹9 lakh.
The investigation follows an FIR registered at Tavarekere police station on August 18, 2026, after a joint raid by the Drug Controlling Authority and police. During that raid at a residential property in C.K. Tandya village, individuals were allegedly found storing pharmaceutical drugs without valid licences or permits and replacing labels on the medicines.
The ED investigation alleges that R. Prashanth arranged a farmhouse near Bidadi to manufacture, repackage, and relabel medicines. It is alleged that cheap bulk formulations from various States were repackaged into vials and fraudulently labelled as expensive Pfizer antibiotics, such as Zavicefta and Emblaveo.
The counterfeit medicines were allegedly distributed through M/s DM Pharmaceuticals to M/s Krupa Healthcare. The ED said M/s Krupa Healthcare then supplied the drugs to hospitals and other pharmaceutical entities by mixing them with genuine medicines to avoid detection.
The searches were carried out under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002. The agency seized digital devices, records, and other documents during the operation.
A Special Investigation Team (SIT) led by Joint Commissioner (West) Vamsi Krishna is probing the case. Further investigation is underway to trace the proceeds of crime and identify the extent of the network.