SIT arrests seventh accused in bogus drug extortion; Chennai link under scanner

A Special Investigation Team (SIT) probing the alleged inter-state fake manufacturing and distribution of drugs on Tuesday arrested the seventh accused, Balasubramanian, in Chennai, revealing another link in the network allegedly run by prime accused Prashanth.

A team of officials arrested Balasubramanian in Chennai allegedly based on information received from Prashanth, who is currently in police custody. Investigators suspect that Balasubramanian acted as the owner/director of a shell company created to facilitate Prashanthu’s network and distribution of spurious drugs.

According to SIT sources, Balasubramanian allegedly received consignments of drugs from Prashanth and Veeresh and supplied them around Chennai and other areas within his network. Investigators are now looking into the company’s transactions, the movement of shipments and the identities of others involved in the interstate distribution chain.

“The information provided by Prashanth during interrogation helped the investigators identify Balasubramanian and trace his role in the network,” an SIT source said. Other persons are suspected to be part of Prashanth’s network and efforts are on to identify and trace them, the source added.

The SIT is also probing the wider cross-state links of the scam, including how the fake drugs were procured, repackaged and distributed through multiple entities.

Meanwhile, the SIT has targeted hospitals that purchased drugs from the accused and is probing the possible implications of the sale and use of the drugs.

Sources said the drugs allegedly supplied through the racket were sold to several hospitals in Bengaluru. Notices have been issued to hospitals seeking details and explanations regarding their purchases.

The SIT is probing whether the hospitals were aware of the nature and source of the drugs and whether any rules or mandatory procedures were violated while purchasing the drugs. Investigators are also looking into the circumstances under which hospitals purchased drugs at comparatively lower prices.

The drug control department has also sought the Union government’s help to explore measures to regulate and cap drug prices, sources said.

Distribution network

The SIT is also expanding its probe into the distribution network, which is believed to have spread beyond Karnataka to other states. Investigators are tracing the supply chain to identify other sellers, distributors and buyers linked to the racket. Pharmaceutical companies have also been subpoenaed for questioning to determine their possible role.

The SIT has also not ruled out the possibility that accused Prashanth has an international network. Investigators are looking into his foreign and financial and business ties to determine whether the racket has an international dimension.

The SIT is also examining the statements of six accused persons arrested earlier in the case. According to investigators, the charges allegedly pointed to Prashanth as the person who oversaw key aspects of the operation, including procurement, distribution and rebranding of drugs.

Investigators are questioning Prashanth based on these statements and other evidence collected during the investigation. They are trying to find out how the alleged network operated, how tasks were assigned and who was responsible for obtaining, repackaging, labeling and distributing the drugs.

Published – 29 Sep 2026 17:21 IST