K'taka: ED Raids Five Premises In Counterfeit Medicines Racket Case Bank Accounts Frozen

(MENAFN- IANS) Bengaluru, Nov 2 (IANS) The Enforcement Directorate (ED), Bengaluru, has conducted search and seizure operations at five premises linked to persons and entities allegedly involved in a counterfeit medicines racket, as part of an ongoing money-laundering investigation under the Prevention of Money Laundering Act (PMLA), 2002, the official statement said on Monday.

The searches were carried out under Section 17 of the PMLA in connection with FIR No. 0266/2026, dated August 18, 2026, registered at Tavarekere Police Station in Bengaluru South, Karnataka.

According to the ED, the case originated from a joint raid conducted by the Drug Controlling Authority and police personnel on August 18 at a residential property in CK Tandya village. During the raid, the accused were allegedly found storing medicines and pharmaceutical drugs without valid licences, permits or authorisation and replacing labels on the stored medicines.

The offences registered under Section 318(4) of the Bharatiya Nyaya Sanhita, 2023, and Section 63 of the Copyright Act, 1957, are scheduled offences under the PMLA. Accordingly, the ED registered an Enforcement Case Information Report (ECIR No. ECIR/BGZO/45/2026) and initiated a money-laundering investigation.

The investigation has allegedly revealed that R. Prashanth arranged a farmhouse near Bidadi for the manufacture, repackaging and relabelling of medicines without the mandatory drug licence or permit.

According to the investigation, cheap bulk pharmaceutical formulations sourced from manufacturing centres in various states were allegedly repackaged into new vials and fraudulently relabelled as expensive Pfizer antibiotics, including Zavicefta and Emblaveo. Although the vials allegedly contained generic medicines, they carried labels bearing the Pfizer brand name.

The counterfeit medicines were allegedly distributed through DM Pharmaceuticals and supplied to Krupa Healthcare.

Subsequently, Krupa Healthcare allegedly supplied the products to other pharmaceutical entities and hospitals along with genuine medicines, apparently to avoid detection.

During the search operations, the ED froze bank accounts belonging to Veeresh Kumar containing approximately Rs 9 lakh. Digital devices, records and incriminating documents belonging to various persons were also seized during the searches.

Further investigation into the case is underway, the ED said.

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