Varanasi: In a major crackdown on illegal pharmaceutical trafficking, Varanasi police on Sunday arrested five individuals for allegedly supplying codeine-laced cough syrup by creating fake pharmaceutical companies using forged documents. The arrests were part of investigations into two separate cases registered at Rohania and Sarnath police stations, which were found to share a similar modus operandi.

Accused and Modus Operandi

According to Additional Deputy Commissioner of Police Neetu Katyayan, the accused in the Rohania case include Swapnil Kesari, Dinesh Yadav, and Ashish Yadav, while the Sarnath case led to the arrest of Vishnu Pandey and Lokesh Agarwal.

Police investigations revealed that the accused had set up shell companies on paper, obtained GST numbers, and acquired licenses from the drug agency. These companies had no real purchase or sale of goods; instead, they were used to generate fake GST bills and invoices, enabling large financial transactions.

The operation was reportedly linked to kingpins Shubham Jaiswal and Divesh Jaiswal, with final transactions routed through companies created by them. Authorities discovered a total of five shell companies involved in the scheme. In the Rohania case, fraudulent transactions worth ₹13 crore were traced through three companies: Al Uqba, SB Pharma, and Singh Medicos, while the two Sarnath companies siphoned off approximately ₹10 crore.

Trafficking and Smuggling Network

The illegally procured cough syrup was sent to Bihar, West Bengal, and Bangladesh at inflated prices, with proceeds reportedly routed back to Varanasi via hawala channels. The entire smuggling network was linked primarily to Shubham Jaiswal, who is currently under a look-out notice and carries a ₹50,000 reward for information leading to his arrest.

Asset Seizures and Investigation

The Special Investigation Team (SIT) identified assets worth approximately ₹38 crore belonging to Shubham Jaiswal and his family. The findings have been submitted to the court, which issued a notice seeking details of these properties within a week, according to Police Commissioner Mohit Agarwal.

Authorities are investigating the diversion of medicines, financial transactions, and connections among the accused, with evidence suggesting the involvement of super-stockists and cross-border trafficking to Nepal and Bangladesh.

The state government has intensified action against the illegal trade of highly regulated codeine-laced cough syrups, having registered 79 cases, named 225 people, and arrested 78 accused, while conducting raids at 134 firms.

Ongoing Probe

The police are continuing to probe the alleged network, focusing on the storage, distribution, and illegal export of the cough syrup. Officials highlighted that the crackdown demonstrates a robust response to prevent pharmaceutical fraud and drug trafficking, which pose serious public health risks.

This operation underscores the increasing vigilance of UP police against sophisticated networks engaged in illegal drug trade and financial fraud, ensuring that perpetrators face strict legal action.