ED raids fake drug racket in Bengaluru, freezes bank account

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ED in Bengaluru over a fake drug racket

Highlights

The ED raided five premises linked to a fake drug racket and froze a bank account belonging to Veeresh Kumar containing approximately ₹9 lakh.
Generic drugs were fraudulently labelled as Zavicefta and Emblaveo under the Pfizer brand and supplied through M/s. DM Pharmaceuticals and Krupa Healthcare.
The operation highlighted serious risks to the reliability of the drug supply chain, hospital procurement and patient safety.

This article was translated from the original. Read the original version by our correspondent here.

Search operation and basis for the investigation

According to the Enforcement Directorate, the action was carried out under Section 17 of the Prevention of Money Laundering Act, 2002, and is linked to FIR No. 0266/2026, registered on 18 August 2026 at Tavarekere Police Station in Bengaluru South. The agency conducted searches and seizures at five premises belonging to individuals and entities linked to the alleged fake drug racket.

The original FIR relates to a joint raid by the Drug Controlling Authority and police on 18 August 2026, during which drugs and pharmaceutical products were found stored at a residential premises in CK Tandiya village without a valid licence, permit or authorisation. According to the investigating agencies, the labels on the drugs stored there were being changed. 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, following which the ED registered ECIR/BGZO/45/2026 and began its investigation.

Supply chain, seizures and regional impact

The investigation has found that R. Prashant allegedly arranged a farmhouse near Bidadi, where drugs were manufactured, repackaged and relabelled without a drug licence or permit. The agency alleges that inexpensive bulk formulations were sourced from manufacturing hubs in various states, filled into new vials and fraudulently relabelled as Pfizer’s expensive antibiotic drugs, including Zavicefta and Emblaveo.

According to the ED, the vials contained generic drugs but carried Pfizer-branded labels. The goods were allegedly distributed through M/s. DM Pharmaceuticals and supplied to M/s. Krupa Healthcare, before being delivered to other pharmaceutical entities and hospitals mixed in with genuine medicines to avoid detection. During the searches, a bank account belonging to Veeresh Kumar containing approximately ₹9 lakh was frozen, while digital devices, records and incriminating documents linked to several individuals were also seized.

The case points to a serious risk to the drug trade, hospital procurement and patient safety, as the alleged false labelling could undermine the reliability of the supply chain. The agency said that further investigation is ongoing.

Our previous report on the alleged embezzlement of funds from Dr. B.R. Ambedkar Development Corporation Limited detailed the ED’s ongoing PMLA investigation and the supplementary prosecution complaint filed before a special court in Bengaluru. It included details of the alleged illegal withdrawal of approximately ₹14.95 crore through fake bank accounts and forged documents, requests for the seizure/attachment of assets, and the expansion of the investigation.

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