5 Arrested in Varanasi for Supplying Codeine- Laced Cough Syrup via Fake Pharma Companies

Varanasi: Police in Varanasi on Sunday arrested five individuals for allegedly supplying codeine-laced cough syrup through fake pharmaceutical companies created using forged documents.

Additional Deputy Commissioner of Police Neetu Katyayan said two separate cases were registered at Rohania and Sarnath police stations concerning the illegal trafficking of cough syrup. Both cases appeared to follow a similar modus operandi, leading to the arrest of five people in total.

In the Rohania case, three individuals, Swapnil Kesari, Dinesh Yadav, and Ashish Yadav, were taken into custody. In the Sarnath case, Vishnu Pandey and Lokesh Agarwal were arrested. According to police, the accused set up shell companies, obtained GST numbers, and procured licences from the drug agency.

Investigations revealed that these companies existed only on paper, with no actual purchase or sale of medicines. They were reportedly used to generate fake GST bills and invoices, facilitating large-scale financial transactions. The operation was reportedly coordinated by kingpins Shubham Jaiswal and Divesh Jaiswal, with the final transactions conducted through companies created by them.

Police identified a total of five shell companies. In the Rohania case, fraudulent transactions worth 13 crore rupees were traced to Al Uqba, SB Pharma, and Singh Medicos, while the Sarnath case involved two companies that siphoned off around 10 crore rupees.

The cough syrup was reportedly sent to Bihar, West Bengal, and Bangladesh at inflated prices, with the proceeds routed back to Varanasi through hawala channels. The entire smuggling network has been linked to Shubham Jaiswal, who is currently evading arrest. A reward of 50,000 rupees has been announced for information leading to his capture, and a look-out notice has been issued.

Police are preparing to seize assets belonging to Shubham Jaiswal. The Special Investigation Team (SIT) has identified assets worth around 38 crore rupees belonging to him and his family, and the court has issued a notice seeking details of these properties within a week.

The SIT is also probing the diversion of medicines, financial transactions, and links among the accused, with evidence pointing to super-stockists and cross-border trafficking to Nepal and Bangladesh.

The state government has registered 79 cases, named 225 people, and arrested 78 individuals, while raids have been conducted at 134 firms. Authorities continue to investigate an alleged illegal network involved in the storage and distribution of highly regulated codeine-laced cough syrups across Uttar Pradesh.