A Bengaluru Police Special Investigation Team (SIT) and the Drugs Control Department have uncovered a suspected counterfeit medicine racket that investigators believe supplied fake or repackaged drugs to more than 90 hospitals and clinics in the city.
Pharmacy owner Veeresh Kumar Jain has been arrested in connection with the case. Police suspect his pharmacy, Krupa Healthcare near Minerva Circle, was being used to store and distribute the alleged counterfeit medicines.
Veeresh Kumar Jain is suspected to be part of a network that supplied counterfeit cancer medicines, other life-saving drugs, and ICU injections to hospitals, clinics and medical shops at discounts of around 50%.
According to investigators, the racket allegedly involved procuring medicines at low prices, rebranding them and selling them under different names. Expired medicines were also allegedly repackaged in new containers and fitted with counterfeit labels, including labels resembling those of established pharmaceutical companies.
The Krupa Healthcare premises is suspected to have served as a storage point before the medicines were distributed to medical shops, hospitals and clinics. Investigators are also examining the suspected involvement of more than 15 medical representatives in transporting or facilitating the distribution of the medicines.
The investigation began after authorities seized suspected counterfeit medicines worth around Rs 5 crore during a raid at a farmhouse in the Bidadi and Dodderi areas of Bengaluru South district on August 18. Fake bills, injection-filling equipment, and counterfeit labels were also recovered.
Following the seizure, the SIT widened its probe and conducted coordinated searches at more than 10 locations across Karnataka, Haryana, Himachal Pradesh, Tamil Nadu and Maharashtra. Investigators subsequently traced part of the suspected supply chain to Krupa Healthcare and Veeresh Kumar.
Vamsi Krishna, Joint Commissioner of Police (West) and head of the SIT, told Indian Express that the investigation was still underway and the full extent of the suspected interstate network had not been established.
“We have seized bank transaction records, purchase and sale vouchers, and other documents. These are being collated to establish the flow of medicines as well as money,” he told IE.
Police suspect Veeresh Kumar had been operating the firm for around five years. Investigators have also alleged that he was linked to Prashant, whom they have described as a key accused and suspected kingpin of the network.
Prashant is absconding and police teams are attempting to trace him.