ED probes money trail, foreign links in Bengaluru medicine racket

Bengaluru: The fake medicine racket uncovered on the outskirts of Bengaluru has come under wider scrutiny, with the Enforcement Directorate (ED) investigating the suspected foreign connections and financial transactions of its prime accused.

The agency is probing the overseas links of R Prashanth, alias Prashanth Rajan Babu, in Turkey, Azerbaijan and the United Arab Emirates. His alleged connections in Sharjah and activities during his stay in Azerbaijan are also being examined.

The investigation follows the racket’s exposure at Tavarekere on August 18. While the Karnataka Special Investigation Team (SIT) is conducting a separate investigation, the ED has initiated proceedings under the Prevention of Money Laundering Act.

The agency recently carried out fresh searches and seized around Rs 9 lakh linked to Veeresh Kumar Jain, who owns Krupa Healthcare near Minerva Circle in Bengaluru.

Investigators suspect that Prashanth repeatedly travelled to Turkey to arrange labels associated with expensive medicines. They are also examining whether intermediaries helped procure counterfeit labels, QR codes and stamps bearing the names of established pharmaceutical brands.

The alleged operation involved purchasing inexpensive generic medicines from manufacturing units across states and repackaging them in new vials with labels of expensive brands. Pfizer antibiotic labels are also suspected to have been used.

The SIT is separately examining allegations that a farmhouse near Bidadi was used for unauthorised manufacturing, repackaging and relabelling of medicines.

The ED is now concentrating on identifying the proceeds of the alleged illegal trade and determining how the money was transferred or invested. Luxury purchases, real estate holdings, shell companies and benami properties are among the areas likely to be scrutinised.

Prashanth was arrested by the SIT in September after allegedly remaining underground in Azerbaijan. The ED may extend its financial investigation to possible violations of FEMA, depending on the evidence gathered.

Get the latest updates in Hyderabad City News, Technology, Entertainment, Sports, Politics and Top Stories on WhatsApp & Telegram by subscribing to our channels. You can also download our app for Android and iOS.