ED seizes property, freezes bank account in counterfeit drug scam; searches five properties in Bengaluru

The case arose out of a joint raid conducted by the Anti-Narcotics Bureau and police personnel at a residential property in CK Tandya village on August 18. Photo credit: MURALI KUMAR K

The Enforcement Directorate (ED) has conducted searches and seizures at five premises associated with persons and entities allegedly involved in counterfeit drugs in Karnataka. The agency also froze a bank account containing around ₹9 crore belonging to one of the accused.

The searches were conducted under Section 17 of the Prevention of Money Laundering Act (PMLA) 2002 as part of an ongoing money laundering investigation arising from an FIR registered at the Tavarekere Police Station on 18 August 2026.

The case arose out of a joint raid conducted by the anti-narcotics office and the police in a residential building in the village of CK Tandya on August 18. During the raid, the accused were allegedly found storing drugs and medicines without valid licenses, permits or authorizations and changing the labels on the stored medicines. The case is being investigated by a Special Investigation Team (SIT) headed by Vamsi Krishna, Joint Commissioner (West), Bengaluru.

An FIR was registered under Section 318(4) of the Bharatiya Nyaya Sanhita (BNS) Act, 2023 and Section 63 of the Copyright Act, 1957. Since these offenses are offenses under the PMLA, the ED registered an Enforcement Case Information Report (ECIR) and launched a money laundering investigation.

According to the ED investigation, a man identified as R. Prashanth had allegedly set up a farm near Bidadi to manufacture, repackage and relabel drugs without the necessary drug license or permit.

Cheap bulk pharmaceutical formulations purportedly originating from manufacturing centers in various states were repackaged in new vials and fraudulently labeled as expensive Pfizer antibiotics, including Zavicefta and Emblaveo. Although the vials purported to contain generic drugs, they were labeled with the Pfizer brand.

The counterfeit medicines were allegedly distributed through M/s DM Pharmaceuticals and supplied to M/s Krupa Healthcare. The latter subsequently supplied the drugs to other pharmaceutical entities and hospitals and mixed them with the original drugs to avoid detection, the ED said.

During the searches, the agency froze bank accounts belonging to Veeresh Kumar containing around ₹900,000. Digital devices, records and other incriminating documents belonging to various individuals were also seized.

Further investigations are underway to identify the extent of the alleged money laundering network and trace the proceeds of crime.

Published – 02 Nov 2026 21:16 IST